Thailand’s poor continue to suffer as economy fails to deliver while cost of living rises

[webfact]

 

By Thanaphum Charoensombatpanich

The data released by the University of Thai Chamber of Commerce (UTCC) yesterday which showed that household debts have surged while as many as 70% of those have missed at least 1-payment, is not surprising because the country’s economy has been on a gradual decline and those around the poverty line has been on a rise.

 

The UTCC’s survey showed that household with monthly income of 50,000 Baht had debts of more than 500,000 Baht and most of those debts were in the personal loan and credit card loan, with these loans/credit card spending mostly used for buying consumer goods and/or durable goods.

 

Thailand’s household debt is expected to be around 90% of the gross domestic product (GDP) or 14.97 trillion Baht, the highest in 16-year of record and world’s 11th highest, by the end of 2022.

 

Full story: https://www.thaienquirer.com/43403/thailands-poor-continue-to-suffer-as-economy-fails-to-deliver-while-cost-of-living-rises/

 

-- © Copyright Thai Enquirer 2022-08-26

 

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[Rampant Rabbit]

2 minutes ago, webfact said:

most of those debts were in the personal loan and credit card loan, with these loans/credit card spending mostly used for buying consumer goods and/or durable goods.

 

Ok so to sum up..self  inflicted ,  no one to blame but themselves, now theyll squeal  like  pigs that they want the govt to help them...the  "poor"

[huangnon]

2 minutes ago, Rampant Rabbit said:

Ok so to sum up..self  inflicted ,  no one to blame but themselves, now theyll squeal  like  pigs that they want the govt to help them...the  "poor"

A large amount of the population here were just subsisting before Covid, massive inflation, joblessness, and rising energy costs. Bear in mind there is virtually no welfare safety net, or unemployment benefits here in Thailand.

 

Quote

The UTCC’s survey showed that household with monthly income of 50,000 Baht had debts of more than 500,000 Baht and most of those debts were in the personal loan and credit card loan, with these loans/credit card spending mostly used for buying consumer goods and/or durable goods.

I don't think 50k/month is representative of Thailand's household income. I doubt the "UTCC" even bothered itself to survey outside Bangkok.

[StayinThailand2much]

I'm sure, the monthly household income of the woman in the pic is 50,000 baht...

[worgeordie]

Yes the basic foods of the poor have all risen , Pla tu , eggs, noodles , 

but you can be sure their incomes have not improved at all, 

regards worgeordie

[lujanit]

1 hour ago, webfact said:

had debts of more than 500,000 Baht and most of those debts were in the personal loan and credit card loan, with these loans/credit card spending mostly used for buying consumer goods and/or durable goods.

They left out the bit where Thais are also in debt to loan sharks although the amount is hard to quantify.

[ThailandRyan]

1 hour ago, Rampant Rabbit said:

Ok so to sum up..self  inflicted ,  no one to blame but themselves, now theyll squeal  like  pigs that they want the govt to help them...the  "poor"

Self inflicted how? Was it because they had to continue to try and live without jobs or working for the past 2 years with the country closed...try again.

[Rampant Rabbit]

1 hour ago, ThailandRyan said:

Self inflicted how? Was it because they had to continue to try and live without jobs or working for the past 2 years with the country closed...try again.

Plenty of  work about, theyre  too  lazy to do it...hence Burmese and Cambodians..who they threw  out and also brought in ridiculous regitsration process to employ them with crazy fines for employers.... They borrow  money for stuff they dont need, show me a Thai without a phone or  motorbike.....try again

[Rampant Rabbit]

2 hours ago, huangnon said:

A large amount of the population here were just subsisting before Covid,

Theres  many who simply dont want to work.....Ive offered  jobs to people and they either dont show or are  bone idle on arrival... over a  10  year period, many of  their ideas  of work are do 2-3 days then [iss  it  all  up the wall  on beer, stay home until sober then go do the same thing again, lack any work ethic and as  soon as your backs  turned  they sit  down. Found two decent  people over a  10  year period, rest are useless.

[mrfill]

2 hours ago, Rampant Rabbit said:

Theres  many who simply dont want to work.....Ive offered  jobs to people and they either dont show or are  bone idle on arrival... over a  10  year period, many of  their ideas  of work are do 2-3 days then [iss  it  all  up the wall  on beer, stay home until sober then go do the same thing again, lack any work ethic and as  soon as your backs  turned  they sit  down. Found two decent  people over a  10  year period, rest are useless.

Never mind the politicians, what about the poor?

[ThailandRyan]

3 hours ago, Rampant Rabbit said:

Plenty of  work about, theyre  too  lazy to do it...hence Burmese and Cambodians..who they threw  out and also brought in ridiculous regitsration process to employ them with crazy fines for employers.... They borrow  money for stuff they dont need, show me a Thai without a phone or  motorbike.....try again

Sure was plenty of work in the tourist areas, in the closed hotels and then of course in the closed restaurants....hmmm...try again.

[BMW Overlander]

3 hours ago, Rampant Rabbit said:

Theres  many who simply dont want to work.....Ive offered  jobs to people and they either dont show or are  bone idle on arrival... over a  10  year period, many of  their ideas  of work are do 2-3 days then [iss  it  all  up the wall  on beer, stay home until sober then go do the same thing again, lack any work ethic and as  soon as your backs  turned  they sit  down. Found two decent  people over a  10  year period, rest are useless.

Same here.

[tomacht8]

Thailand’s household debt is expected to be around 90% of the gross domestic product (GDP) or 14.97 trillion Baht, the highest in 16-year of record and world’s 11th highest, by the end of 2022.

 

That is the result of a totally failed goverment policy.

 

Where wealth is growing for the few who are at the top of the income pyramid and where the masses always get little, while at the same time private and state debt are rapidly increasing.

 

[Andycoops]

Here in Isaan only a small fraction of the population earn anywhere near 50k and as it contains the majority of the Thai population I suspect that no calls were made to folk living up here.

[Cake Monster]

There are very clear signs that the Economy is slowing in our Location.

The Factory Workers dont have any, or as much overtime as they did a couple of Months ago.

One Guy is saying he may be laid off next Month as his Factory has no work.

And these are people with a 13 K Basic Monthly Salary

Local Markets are very quiet, with Traders saying the people are just not spending.

The Local Village just does not seem to have the Hustle and Bustle of a Month or so ago.

There also seem to be people looking for work from Bangkok and surrounding area because their Factories are slowing down.

7 hours ago, webfact said:

Thailand’s household debt is expected to be around 90% of the gross domestic product (GDP) or 14.97 trillion Baht, the highest in 16-year of record and world’s 11th highest, by the end of 2022.

I was led to believe the Household Debt to GDP Ratio was already over 90 % ( 94 % ) several Months ago, with the projection to be over 100 % by Year end.

Maybe I am wrong on this, but with the irresponsible lending, I would not be surprised if it was over 100 % 

This is the main reason the BOT cannot raise the Interest Rate.

If they do, so many are over leveraged on Debt, they will be forced into NPL or Managed Debt and Special Mention Loans.

And this will not just be the Employees, but the Employers as well.

 

[zzaa09]

6 hours ago, worgeordie said:

Yes the basic foods of the poor have all risen , Pla tu , eggs, noodles , 

but you can be sure their incomes have not improved at all, 

regards worgeordie

This basic appears to be one and the same the world over - for ages.

Everything and anything increases [unnecessarily, I might add] 100 fold over a couple of generations or more, whereas everyday wages/salaries don't adjust or change accordingly. 

 

And the ruling elites are perplexed and numb as to why much of the world's population are taking to the streets......time and time again.

[realfunster]

8 hours ago, webfact said:

The UTCC’s survey showed that household with monthly income of 50,000 Baht had debts of more than 500,000 Baht and most of those debts were in the personal loan and credit card loan, with these loans/credit card spending mostly used for buying consumer goods and/or durable goods.

 

Thailand’s household debt is expected to be around 90% of the gross domestic product (GDP) or 14.97 trillion Baht, the highest in 16-year of record and world’s 11th highest, by the end of 2022.

Worrying statistics, if you are on 50k a month, it must take 10+ years at 5k a month re-payment to clear a debt of 500k. 

 

All debt proposes its challenges but it's concerning what the loans appear to be for. At least if it were home loans, rather than consumables/durables as the article suggests, then you are borrowing to (1) have somewhere to live (2) you are progressively acquiring capital/asset and (3) there is some collateral in the financial system. When these sort of consumable/durable loans go bad, it will likely be a significant or complete write-off for the finance company. 

[Rampant Rabbit]

3 hours ago, ThailandRyan said:

Sure was plenty of work in the tourist areas, in the closed hotels and then of course in the closed restaurants....hmmm...try again.

So they can ONLY work in tourism can they.........adapt  or  die...try again

[Rampant Rabbit]

3 hours ago, BMW Overlander said:

Same here.

Many posters  havent a  clue  here what its  like  employing anyone and how many really are.......unsuitable for almost anything, Got a kid  with only half a hand, he works harder than two people as  such he gets  paid well.

[RichardColeman]

There would literally have to be Plague, death, Pestilence and famine riding their horses around bangkok for the baht to fall these days

[billd766]

10 hours ago, Rampant Rabbit said:

Ok so to sum up..self  inflicted ,  no one to blame but themselves, now theyll squeal  like  pigs that they want the govt to help them...the  "poor"

Especially all those lazy people who used to work in the decimated tourist industry, whose jobs were lost and destroyed by the current government.

 

You know the ones. The girls that worked in the bars, the businesses who supplied the alcohol, soda and soft drinks, the people who used to deliver it, the people who used to work supplying food, the security staff, the car parkers, the guest houses and the small hotels, the shops that used to sell to tourists, the taxi, motosai and tuk tuk drivers etc. The bar, guest house and small hotel owners.

 

My bitter sarcasm and rant is over for a while.

[SteveBull]

10 hours ago, Rampant Rabbit said:

Ok so to sum up..self  inflicted ,  no one to blame but themselves, now theyll squeal  like  pigs that they want the govt to help them...the  "poor"

If your kids were hungry what would you do ? Give us an alternative that is open to your average rural thai family .....we're all ears....

 

As for the govt to help, the irony is amazing, here they get next to nothing from the thai govt, no safety nets here if you're on your <deleted>, whereas in the west you're pampered from cradle to grave and paid not to work, paid to have kids, paid to stay at home to take care of your babies - so where are you from ?

 

[SteveBull]

7 hours ago, Rampant Rabbit said:

Plenty of  work about, theyre  too  lazy to do it...hence Burmese and Cambodians..who they threw  out and also brought in ridiculous regitsration process to employ them with crazy fines for employers.... They borrow  money for stuff they dont need, show me a Thai without a phone or  motorbike.....try again

If you live in rural Thailand how can you not 'need' a phone (if you're sick) or a motorbike (to get to your job/get food) - you're not thinking this through too well.

[ThailandRyan]

7 minutes ago, billd766 said:

Especially all those lazy people who used to work in the decimated tourist industry, whose jobs were lost and destroyed by the current government.

 

You know the ones. The girls that worked in the bars, the businesses who supplied the alcohol, soda and soft drinks, the people who used to deliver it, the people who used to work supplying food, the security staff, the car parkers, the guest houses and the small hotels, the shops that used to sell to tourists, the taxi, motosai and tuk tuk drivers etc. The bar, guest house and small hotel owners.

 

My bitter sarcasm and rant is over for a while.

He doesn't get it that many of those unemployed worked in the tourist industry, and he believes tourism is a drop in the bucket. 4 hotels, large ones near me here in BKK closed over 2 years ago and all lost there jobs. Hard to work in a hotel when it's closed and others have reduced staff.  Had friends close there businesses because of a lack of customers and the rents could not be met.....we adopted 4 families whose store fronts closed and have been helping them......they just recently started back up but are struggling.....

[SteveBull]

50 minutes ago, Rampant Rabbit said:

Many posters  havent a  clue  here what its  like  employing anyone and how many really are.......unsuitable for almost anything, Got a kid  with only half a hand, he works harder than two people as  such he gets  paid well.

Have you just cracked open another bottle ?

[ThailandRyan]

1 minute ago, SteveBull said:

Have you just cracked open another bottle ?

His reasoning is self induced because he has a hard time hiring folks, so because of that its laziness and self induced by those unemployed folks.  My GF had to close her salon because of Covid. She had to lay off her 4 employee's, and try as hard as she can, she herself can not find a job coloring hair or working in a salon herself, because they are jobs only a Thai can do and she is from Myanmar.  To work in a salon she must be the owner, and at this time no one can afford what true hair coloring or styling costs.......

[SteveBull]

1 minute ago, ThailandRyan said:

His reasoning is self induced because he has a hard time hiring folks, so because of that its laziness and self induced by those unemployed folks.  My GF had to close her salon because of Covid. She had to lay off her 4 employee's, and try as hard as she can, she herself can not find a job coloring hair or working in a salon herself, because they are jobs only a Thai can do and she is from Myanmar.  To work in a salon she must be the owner, and at this time no one can afford what true hair coloring or styling costs.......

Perhaps word has got around how little he respects them. 

 

I see green shoots in various industries here as Covid recedes so perhaps there's hope yet - don't know where you're from but I'm sure properties will become available, now probably being a good time to barter with a landlord ?

 

I would offer to be a customer, but all she'll be doing is painting my head !! ????

[ThailandRyan]

3 minutes ago, SteveBull said:

Perhaps word has got around how little he respects them. 

 

I see green shoots in various industries here as Covid recedes so perhaps there's hope yet - don't know where you're from but I'm sure properties will become available, now probably being a good time to barter with a landlord ?

 

I would offer to be a customer, but all she'll be doing is painting my head !! ????

One of her employees landed a job in a shop off of Sukhumvit near On Nut. She has had 1 customer in 4 days, the shop owner is about to close up.  People want their hair washed and trimmed, which takes an hour, for 200 baht... Many folks still do not have money......

[kickstart]

44 minutes ago, Adumbration said:

Time to get worried?  Thai banks have at best 70% non performing loans on their books right now

Can we have the link to that quote ,takes some believing.

 

[ExpatOilWorker]

1 hour ago, Adumbration said:

Time to get worried?  Thai banks have at best 70% non performing loans on their books right now and we have 800K each locked in.

NPL is 2.88% at the moment. It was just about 3% in much of 2020/21.

The debt memorandum must still be in play, because SM loans are still nearly 7% which is unusual high. In about numbers SM was 400 billion pre-Covid, but now it is 1.1 trillion baht.