A member of the Thai Wholesale and Retail Trade Association has urged the government to implement measures supporting small retailers, particularly on accounting and tax-related issues.
Somchai Pornrattanacharoen, honorary advisor to the Thai Wholesale and Retail Trade Association, said the government is focusing on allocating funding for co-payment schemes, but lacks long-term programmes to improve the skills of small retailers.
He said the government should encourage small retailers to formalise their operations.
Possible initiatives include providing training courses on basic accounting practices and value-added tax (VAT) registration. Incentives such as a grace period for newly registered operators could help increase participation.
Mr Somchai highlighted challenges faced by small retailers, including high gross-profit fees imposed by e-commerce platforms, as well as high rental costs and revenue-sharing agreements for physical store operators.
He expressed concern that government incentives aimed at attracting foreign investment and large-scale manufacturers may increase the risk of local factory closures, negatively affecting small businesses and workers.
Mr Somchai reiterated that the government should offer low-rent retail spaces, enabling small retailers to open and operate stores at reduced costs. This approach would provide an alternative to expensive rental fees and revenue-sharing agreements.
Regarding the effectiveness of the "Thais Help Thais Plus" co-payment scheme, a retailer in northeastern Thailand reported a sales increase for his company, although the growth fell short of expectations.
Milin Veraratanaroj, chairman of Tang Ngee Soon Superstore, one of the largest traditional wholesale chains in Udon Thani province, said his company saw a 10% increase in sales during June 1-12 compared with the normal period, which was below his anticipated 15% rise.
Although Tang Ngee Soon Superstore is not eligible to participate in the scheme, small mom-and-pop shops continue to purchase goods from its wholesale outlets.
Mr Milin observed that consumer sentiment has been negatively affected by the current economic situation. Some individuals are choosing to prioritise savings or postpone spending, resulting in a weaker response to the co-payment scheme than expected.
"The Thai economy has long been in poor shape. Geopolitical conflicts and reports of economic volatility are adding pressure to the current situation, weighing on consumer sentiment," he said.
He added that high energy prices have increased the daily cost of living, and people are likely to allocate a greater share of their income to energy expenses.
Last week, the Thai Retailers Association called on the government to relax the conditions of the Thais Help Thais Plus co-payment scheme by expanding eligibility to businesses of all sizes.
Mr Somchai and Mr Milin expressed concerns that allowing larger businesses to join the programme may negatively affect smaller retailers.
