Bangkok: Ekanit has announced plans to rejuvenate Hat Yai by transforming it into a smart city in the South, while the Economic Cabinet deliberates special conditions to provide relief to the region. Dr. Ekniti Nitithanpraphas, the Deputy Prime Minister and Minister of Finance, shared these ambitions during a special lecture organized by the Thammasat Economics Association.
According to Thai News Agency, Dr. Ekniti detailed the government’s short-term economic strategies, highlighting the “Kon La Khrueng Plus” program, which has successfully distributed 83% of its funds to provincial areas outside Bangkok. This initiative, alongside accounting training by the Government Savings Bank and upgrades for online sellers by the Ministry of Commerce, aims at providing immediate relief with long-term economic benefits. However, he emphasized the need to reassess funding allocations for the program’s second phase, especially in light of ongoing flood relief efforts in the South.
Despite the flooding in Hat Yai District not significantly impacting the national GDP, it has severely affected local livelihoods and property, necessitating urgent relief measures. The government is collaborating with state and commercial banks to offer low-interest loans for the repair of homes, shops, and factories, aiming to inject financial support across all sectors to foster recovery and development. The ultimate goal is to elevate Hat Yai to a smart city status, drawing inspiration from Penang, Malaysia, and leveraging local institutions like Prince of Songkla University.
In a recent economic cabinet meeting, policies were aligned to assist SMEs through soft loan guarantees and initiatives like the “Brothers Helping Younger Children” program. These efforts are designed to integrate SMEs into the supply chain, attract investment from companies listed on the Stock Exchange of Thailand, and engage the Board of Investment in development projects, focusing on the modern automotive and medical industries. Short courses are being developed to equip Thais with skills for immediate employment in these sectors.
Vitai Ratanakorn, Governor of the Bank of Thailand, noted effective collaboration between the BoT and the Ministry of Finance. The BoT plans to implement targeted measures beyond policy interest rates to tackle structural issues and improve credit access for grassroots communities. This includes revamping the loan guarantee system to better support SME development and expanding assistance measures to affected provinces.
Flood relief discussions, involving state and commercial bank executives, are set to be presented to the Economic Cabinet. Proposed measures include zero-interest loans for repairs and leveraging the Government Savings Bank for soft loan distribution, given the constraints on the government’s emergency loan decree. These efforts aim to facilitate access to low-interest loans for entrepreneurs, primarily through state banks.
Dr. Pipat Luengnaruemitchai, Managing Director and Chief Economist at Kiatnakin Phatra Bank, provided insights on Thailand’s economic outlook, predicting slower growth rates compared to the current year. While the flooding in Hat Yai has not heavily impacted GDP, it underscores the need for cautious monitoring of global economic factors and proactive investment in new technologies to sustain economic growth.