Govt To Ask Discount From Department Stores To Boost Local Spending

[george]

Govt to ask discount from department stores to boost local spending

BANGKOK: -- Deputy Prime Minister Korbsak Sabhavasu said Thursday he would ask shops and department stores nationwide to provide 10-20 per cent discount for consumers in a bit to stimulate domestic spending.

This measure would be done following the government's Bt2,000 cash handout to 9-million low-income earners.

Korbsak added that the government would give the Bt2,000 cash handout to the 9-million people via cheques by submitting through post.

The 10-20 per cent discounts in all shops and department stores would help boost spending and prevent people from saving the money at bank accounts, he said.

-- The Nation 2009-02-12

[jackr]

Hope the discount includes beer

[TAWP]

Hope the discount includes beer

If it does you can more easily be able to afford 10 bottles and you can buy it any time of the day.

[sniffdog]

Just wait to buy that HDTV ....

[AussieFarang]

BANANA REPUBLIC !!!!!!!!!

[elibangkok]

Why not just have the govt' send out vouchers that can only be used at department stores?

Maybe govt pays B1,000 for a B1,500 voucher, consumer goes into store, maybe spending more?

Win/win/win right? Better than B2,000 in cash

[Seneque]

And the government will credit the stores loss of income ? ...

[kalbo123]

If this is all the government can think of dealing with the crises I am afraid about Thailand's future..

If they want to push retail sales how about paying the people of Thailand a fair salary?

I think it's completely up to the department stores how much the charge for what ever they sell...

[henryalleman]

Is Thailand becoming a communist country or are they just plain stupid to propose such idiotic proposal.

[cmsally]

This smacks of something that you see happening often between govt and private sector. Government needs something and wants private sector to pay. So often I have heard these stories of a particular government sector "needing" something and asking a private entity, very often expecting it for free. Often implied that favours and favouritism can be gained but the govt sector will not be worrying if the figures balance at the end of the day.

It also ties in with what I heard yesterday about the bank trying to raise 2m Bt guarantee money from each merchant. The bank employee was almost apologetic , so one can presume it was a directive from the top. Long standing customers who do business were seen as an easy way to boost bank capital reserves.

[selftaopath]

BANANA REPUBLIC !!!!!!!!!

My initial feelings include: Previously the government seemed stern and dictatorial. Almost like, “my way or the highway.” Now that an authoritarian approach seems somewhat problematic – perhaps temporarily – the feel is OH please help us. Again I’ll reiterate my belief that a “cash cow” can be beaten to death. Have foreigners felt welcomed and remain willing to jump through the never changing and constantly remaining hoops to spend money and explore This Wonderful Kingdom ?

[jim4pim]

Why not just have the govt' send out vouchers that can only be used at department stores?

Maybe govt pays B1,000 for a B1,500 voucher, consumer goes into store, maybe spending more?

Win/win/win right? Better than B2,000 in cash

You got it, cheques will arrive 2-3mths later, by then the retail price will be +30% minus gov directive of 10-20% equals a minimum 10% additional profit to stores yes win/win

[femi fan]

So much for the thai government listening to the king's self-sufficiency economic model, especially in these hard times globally. For me it just shows how western thailand is becoming, for this is the sign of a great capitalist consumerist spending system that is exactly what the west is.

Yeah, don't save any spare money you've got, go buy some products with it. Go and buy more stuff you don't need, just the stuff that the advertising implores you to 'need'.

As for the 2000 baht they're handing out to millions of folk, if this was in the form of food and drink credits that would be fine, and would be real help.

I find it amazing that the philosophy of the king's self-sufficiency model that is so appropriate in many ways and especially so in these global recession times is so blatantly ignored by the government of thailand. It is a great model for people all around the world, but here in country of its birth it is just ignored by the main body responsible for leading the nation.

Just another case of governments not doing the real leading that the citizens would like it to be doing. It's a worldwide problem, and thailand is showing lots of signs of doing things the western capitalist way. Oh dear.

[h90]

Is Thailand becoming a communist country or are they just plain stupid to propose such idiotic proposal.

to get communist they need to make everything state property first, so I think option 2 "plain stupid"

[h90]

So much for the thai government listening to the king's self-sufficiency economic model, especially in these hard times globally. For me it just shows how western thailand is becoming, for this is the sign of a great capitalist consumerist spending system that is exactly what the west is.

Yeah, don't save any spare money you've got, go buy some products with it. Go and buy more stuff you don't need, just the stuff that the advertising implores you to 'need'.

As for the 2000 baht they're handing out to millions of folk, if this was in the form of food and drink credits that would be fine, and would be real help.

I find it amazing that the philosophy of the king's self-sufficiency model that is so appropriate in many ways and especially so in these global recession times is so blatantly ignored by the government of thailand. It is a great model for people all around the world, but here in country of its birth it is just ignored by the main body responsible for leading the nation.

Just another case of governments not doing the real leading that the citizens would like it to be doing. It's a worldwide problem, and thailand is showing lots of signs of doing things the western capitalist way. Oh dear.

Hand it out in form of education for young people. Real education and it would benefit the country the next 40 years.

[femi fan]

Hand it out in form of education for young people. Real education and it would benefit the country the next 40 years.

Yeah, but who's going to teach the teachers first? Kids can't get real education while the teachers aren't trained to deliver it. And that comes back to the government again...

[samgrowth]

So much for the thai government listening to the king's self-sufficiency economic model, especially in these hard times globally.

Ironic isn't it.

Why don't government force every companies to increase pay by 10-20% instead.

[ballpoint]

BANANA REPUBLIC !!!!!!!!!

My initial feelings include: Previously the government seemed stern and dictatorial. Almost like, "my way or the highway." Now that an authoritarian approach seems somewhat problematic – perhaps temporarily – the feel is OH please help us. Again I'll reiterate my belief that a "cash cow" can be beaten to death. Have foreigners felt welcomed and remain willing to jump through the never changing and constantly remaining hoops to spend money and explore This Wonderful Kingdom ?

Sorry, must have missed the bit where it says foreigners will still have to pay the full price at these shops. How can this story be turned into a Thais ripping off foreigners rant?

As for the story itself, what is the difference between this and the governments of other countries asking their retailers to hold national sales? The Great Singapore Sale? The KL sale? The Dubai shopping festival? All are an attempt to attract spending, keep the money in circulation and the economy ticking over.

[Journalist]

Give every Thai person a laptop and let them shop online and educate themselves simultaneously.

[Plus]

Factories laying off workers left and right, what's sufficiency economy for someone suddenly left without a job? And I'm not talking about low paid staff that can get the same deal in McDonalds or something, they are laying off and cutting income for people with families and kids and school fees and everything.

Export markets are shrinking, why not encourage domestic spending instead if it means keeping millions of jobs?

You can say they would be buying useless staff they can't realy afford, but it depends on the mark up, doesn't it? There are lots of useful things people would to buy if the price is right.

Dept stores offer big discounts several times a year, no big deal. Six months later there will be no customers left 'cos they'd have no income at all, discount or not. Suppliers would go bust, too, it will be a total nightmare.

[femi fan]

As for the story itself, what is the difference between this and the governments of other countries asking their retailers to hold national sales? The Great Singapore Sale? The KL sale? The Dubai shopping festival? All are an attempt to attract spending, keep the money in circulation and the economy ticking over.

No, little difference.

But whose money is to be kept in circulation, and what kind of economy is to be kept 'ticking over'?

All it is is governments encouraging more spending and more personal debt that funds this spending. No lessons to be learned at all from the global downturn, the absolute priority is to keep the economy ticking over and to keep the spend spend spend culture intact. Who cares if people dig themselves deeper into debt and other problems? Forget human lives, just look after the arch-God like economy.

That's all that matters, the economy.

[Plus]

I think people can easily manage 4% contraction in their income. On a country scale, however, it means a million jobs lost. It means a million families without income. A million families with 100% contraction.

Keeping jobs going is very very important.

[fred2007]

BANANA REPUBLIC !!!!!!!!!

Your name is not Keating by any chance?

[Gravelrash]

It is just all part of stimulating the economy, the recent decision to double the order of new jets from Sweden at the air force's request is no doubt part of the same strategy.

[dumball]

Whoa , Whoa , Whoa , they will need the extra jets to keep all of the outsiders from rushing into Thailand and snapping up all of the 'Bargoons' , poor Thai will be out of luck again .

[h90]

Hand it out in form of education for young people. Real education and it would benefit the country the next 40 years.

Yeah, but who's going to teach the teachers first? Kids can't get real education while the teachers aren't trained to deliver it. And that comes back to the government again...

There would be ways to improve the basic things without.

On College/University level it would cost a lot, but if there would be a real will to do it would be possible.

But the following impossible things would be necessary:

a) asking experts from other countries and accept that Thailand is not the best of the best in every field.

importing experts from outside in all fields

c) accept that the worlds most important language is english and not thai

d) accepting that someone did not pass the test even he paid xxx.xxx Baht

e) free government universities

f) close all private universities which do not have a good standard

[fobuff]

What government giveth, the government taketh .....

:D

fobuff

[PoorSucker]

Can I also haggle the price down at Tesco?

Lonely planet says I can haggle...

[samgrowth]

Does the government have the power to order the department stores?

[swain]

Well the stores are already discounting 30-50 percent already if you read the signs in the stores. I truly believe that a shirt for my 2 year old daughter was originally was priced 1300 baht discounted to 650 baht... at this rate ... another 10 to 20 percent we might just get close to normal retail.

Why not just have the govt' send out vouchers that can only be used at department stores?

Maybe govt pays B1,000 for a B1,500 voucher, consumer goes into store, maybe spending more?

Win/win/win right? Better than B2,000 in cash

You got it, cheques will arrive 2-3mths later, by then the retail price will be +30% minus gov directive of 10-20% equals a minimum 10% additional profit to stores yes win/win