Thai govt needs to hike budget for vaccine to prevent economy taking bigger hit

[webfact]

Government needs to hike budget for vaccine to prevent economy taking bigger hit 

By The Nation

 

Anusorn Tamajai

 

The Thai stock market is expected to face sell-offs in the final week of the year, as new cases of coronavirus infections soar, Anusorn Tamajai, former dean of Rangsit University’s Economics Faculty, has warned.

 

People who pay respects at the Hindu shrine outside Isetan department store in Bangkok have to stay in the marked space as a precaution against virus infection.

 

A new round of coronavirus infections globally and the threat of new virus variants may force many countries to impose ban on foreign arrivals, and such restrictions would disrupt recovery of the global economy, he said.

 

The Stock Exchange of Thailand (SET) may plunge below 1,400 from Friday’s close of 1,486.31, he predicted.

 

The SET's new barrier may be at 1,380. The baht will not change much in the final week of the year but it could have a tendency to appreciate in the first quarter of next year due to large contraction in imports, he said.

 

Investors may shift their funds to more secure asset classes, such as gold and government bonds, as Thailand and other Asian countries are facing a new round of infections which threatens economic recovery. The threat of a US government shutdown could also make global stock markets jittery, as incumbent President Donald Trump has not yet signed the virus relief package into law. That would also adversely affect US stocks and the dollar, said Anusorn.

 

The Thai government reported 121 new Covid-10 cases on Sunday and authorised partial lockdowns in several provinces.

“The challenge for the government is how to prevent multiple clusters and superspreading events in the next two months,” he said.

 

If the government can do that, then the virus will be contained as it was in the first round of infection, therefore any large gathering of people must be avoided over the next two months, he noted.

 

He said the government's budget of Bt6 billion to buy vaccines is not adequate. The Bt6 billion will buy just 26 million doses of vaccine and only 13 million people will get shots as everyone needs two shots.

 

Thailand needs to vaccinate at least 53 to 54 million people, including migrant workers, to control the virus and pave the way for reopening of the economy in the third quarter next year, he suggested.

 

So the government needs Bt18.69 billion more for vaccine sourcing, as the country needs to import at least 107 million vaccine doses, he said.

 

“If Thailand cannot reopen the economy in the third quarter of next year, more people will lose their jobs, more small businesses will go bankrupt and financial institutions will face serious trouble,” he warned.

 

The government has to go ahead with its plan to collect land and building tax in order to get more revenue from wealthy people who have the capacity to pay more taxes, he said.

 

He also urged the government to allow private hospitals to provide vaccinations to high-income groups in order to reduce government spending.

 

The Bank of Thailand on Wednesday cut its economic growth projection for next year to 3.2 per cent, down from the previous projection of 3.6 per cent, due to the impact of the new round of Covid infections worldwide.

 

The central bank, however, revised upward its forecast for this year's growth, predicting a contraction of 6.6 per cent compared with the 7.8 per cent contraction predicted previously.

 

Source: https://www.nationthailand.com/business/30400308

 

 

-- © Copyright The Nation Thailand 2020-12-28

 

- Whatever you're going through, the Samaritans are here for you

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[Destiny1990]

Closing borders instead of buying vaccines isn’t a fix.

[Bender Rodriguez]

the magical vaccine, all hail the new savior of the world

 

might be available for 10.000 baht 

[RotBenz8888]

5 hours ago, webfact said:

He also urged the government to allow private hospitals to provide vaccinations to high-income groups 

Like himself? 

[hotchilli]

2 hours ago, Destiny1990 said:

Closing borders instead of buying vaccines isn’t a fix.

In the long run it may be cheaper to cut all the stimulus packages and buy 70 million vaccines for the entire population.

[Mr Meeseeks]

6 hours ago, webfact said:

So the government needs Bt18.69 billion more for vaccine sourcing, as the country needs to import at least 107 million vaccine doses, he said.

So as a taxpayer I will be funding this, but ironically as a farang, I will have to pay for a vaccine separately and out of my own funds?

[asiasurfer]

8 minutes ago, Mr Meeseeks said:

So as a taxpayer I will be funding this, but ironically as a farang, I will have to pay for a vaccine separately and out of my own funds?

Yes, exactly. Dirty farang need to pay themselves, whether they pay tax and social insurance or not. And it's just one of those many things. 

 

Sorry, I gotta puke my guts out... 

[rupert the bear]

AZ vacc is out this week in uk ,it promises 90% + cover and its 4 US a time.easy to store,game changer.most of the population can be vaccinated for the cost of one chinese sub,cut the military budget get the vacc and get the country on its feet again,you dont need to be smart to figure that out  just NOT corrupt self interested or a complete idiot.

[bdenner]

1 hour ago, Mr Meeseeks said:

So as a taxpayer I will be funding this, but ironically as a farang, I will have to pay for a vaccine separately and out of my own funds?

If my math is correct the cost to the tax payer would be about 175 Baht per dose - 350 Baht in total. OK, with Thailand's dual price policy (aimed at Farang) I would expect to pay 3500 Baht. Two bob to a pinch of buffalo dung we will be paying a lot more than that. 

[khunPer]

8 hours ago, webfact said:

He said the government's budget of Bt6 billion to buy vaccines is not adequate. The Bt6 billion will buy just 26 million doses of vaccine and only 13 million people will get shots as everyone needs two shots.

 

Thailand needs to vaccinate at least 53 to 54 million people, including migrant workers, to control the virus and pave the way for reopening of the economy in the third quarter next year, he suggested.

 

So the government needs Bt18.69 billion more for vaccine sourcing, as the country needs to import at least 107 million vaccine doses, he said.

Perhaps borrow some money from the Moon-travel budget, which seems to be of least importance at the moment...????

[realfunster]

2 hours ago, hotchilli said:

In the long run it may be cheaper to cut all the stimulus packages and buy 70 million vaccines for the entire population.

Absolutely it would be. Significantly cheaper.

[chilli42]

If I understand correctly, the Thai government has only signed up for 26 million does of the AstraZeneca vaccine that will be produced in Thailand and is not yet approved for use anywhere ( as far as I know).  Why the low quantity (relative to population) why has the government not purchased and started distribution of one of the alternative “approved” vaccines, how much will  be charged for the vaccine to ensure compliance?  Something here smell very wrong from any distance.

[abrahamzvi]

14 hours ago, webfact said:

Government needs to hike budget for vaccine to prevent economy taking bigger hit 

By The Nation

 

Anusorn Tamajai

 

The Thai stock market is expected to face sell-offs in the final week of the year, as new cases of coronavirus infections soar, Anusorn Tamajai, former dean of Rangsit University’s Economics Faculty, has warned.

 

People who pay respects at the Hindu shrine outside Isetan department store in Bangkok have to stay in the marked space as a precaution against virus infection.

 

A new round of coronavirus infections globally and the threat of new virus variants may force many countries to impose ban on foreign arrivals, and such restrictions would disrupt recovery of the global economy, he said.

 

The Stock Exchange of Thailand (SET) may plunge below 1,400 from Friday’s close of 1,486.31, he predicted.

 

The SET's new barrier may be at 1,380. The baht will not change much in the final week of the year but it could have a tendency to appreciate in the first quarter of next year due to large contraction in imports, he said.

 

Investors may shift their funds to more secure asset classes, such as gold and government bonds, as Thailand and other Asian countries are facing a new round of infections which threatens economic recovery. The threat of a US government shutdown could also make global stock markets jittery, as incumbent President Donald Trump has not yet signed the virus relief package into law. That would also adversely affect US stocks and the dollar, said Anusorn.

 

The Thai government reported 121 new Covid-10 cases on Sunday and authorised partial lockdowns in several provinces.

“The challenge for the government is how to prevent multiple clusters and superspreading events in the next two months,” he said.

 

If the government can do that, then the virus will be contained as it was in the first round of infection, therefore any large gathering of people must be avoided over the next two months, he noted.

 

He said the government's budget of Bt6 billion to buy vaccines is not adequate. The Bt6 billion will buy just 26 million doses of vaccine and only 13 million people will get shots as everyone needs two shots.

 

Thailand needs to vaccinate at least 53 to 54 million people, including migrant workers, to control the virus and pave the way for reopening of the economy in the third quarter next year, he suggested.

 

So the government needs Bt18.69 billion more for vaccine sourcing, as the country needs to import at least 107 million vaccine doses, he said.

 

“If Thailand cannot reopen the economy in the third quarter of next year, more people will lose their jobs, more small businesses will go bankrupt and financial institutions will face serious trouble,” he warned.

 

The government has to go ahead with its plan to collect land and building tax in order to get more revenue from wealthy people who have the capacity to pay more taxes, he said.

 

He also urged the government to allow private hospitals to provide vaccinations to high-income groups in order to reduce government spending.

 

The Bank of Thailand on Wednesday cut its economic growth projection for next year to 3.2 per cent, down from the previous projection of 3.6 per cent, due to the impact of the new round of Covid infections worldwide.

 

The central bank, however, revised upward its forecast for this year's growth, predicting a contraction of 6.6 per cent compared with the 7.8 per cent contraction predicted previously.

 

Source: https://www.nationthailand.com/business/30400308

 

 

-- © Copyright The Nation Thailand 2020-12-28

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

This gentleman is really making sense. His warnings are real and his suggestions regarding the vaccine sound very appropriate. It also makes sense to allow private hospitals to charge for the vaccine. One should keep in mind that Thailand used to be a medical hub for foreigners. They will come again if they can get vaccinated here and there is no doubt that they will be prepared to pay for it. Why should Thailand pay for the vaccines for rich Thais and foreigners?