Thailand is a country with many hidden realities also called This is Thailand or TIT. Not everyone can appreciate my love for the country, but after almost 30 years of Thailand experience, of which the last 10 years as a working resident, I can hopefully have an opinion.
Many readers of this blog have already had a working life and can enjoy a well-deserved retirement. Nothing except death is certain in life and we all try to make something of it. At least that should be the intention if you respect your own life.
Pensioners react from their own financial position if the baht does not do so well, while for others from Thailand it is not even that bad if the baht yields more euros or dollars. What kind of arrogance is that towards the middle-income Thai who also want to go on holiday abroad?
It is often assumed on this blog that Thailand is a banana republic, but could it also be related to imagery by troublemakers in combination with the current media possibilities? The government has released one million baht per district to ensure that the Covid-19 blows can be overcome. According to the English Wikipedia, that's 878 districts and I think a substantial amount, and what do you hear about it? People pretend Thailand is a ridiculous country, but sometimes it's better to get to know the country better. Perhaps that is even the reason that the real connoisseurs appreciate the country better, which is reflected in the value of the baht.
Submitted by Johnny BG
Where the country needs billions to recover socio-economically, those few millions will not make it. 878 districts each one (1) million baht may sound like a substantial amount, what is not seen but what is there is the large unemployment, the lethargy and the discontent that the population has become part of. Yesterday I made an extensive phone call with an acquaintance in Korat: there is a lot of unrest coming.
Yes, 878 million converted into Euros is only 24 million Euros. And then you don't know yet where it is financed because there are more village funds and, as is often the case, it is at the expense of another fund or government expenditure. With millions of new unemployed and a declining economy, there is considerably less income for the government. And in the long term this will result in the question of who will pay for it. Ultimately, the government will have to make significant cuts because there will be less income from export taxes, less VAT collection, less income taxes and excise duties, etc., all thanks to disappointing production, fewer tourists, less exports. My opinion is that if there is only 878 million available, the Thai government already has major financial problems. And in particular the recent departure of the financial minister and also the departure of the most important economic expert in the cabinet seems to me to be proof of this.
@Herman,
This is what I mean.
The Netherlands is also earmarking 90 billion euros and other countries must do the same. Unemployment is growing there too and there is dissatisfaction there too. Is this going to break out everywhere or is it only for Thailand?
I can already tell you that this year the revolution is not going to break out and on December 31, 2020 I will remind you.
I would like to hear from someone who really understands what Thailand is really like now and what to expect in the near future with unemployment, etc.
The point of your story is not clear to me.
It is very natural to judge a situation from your own perspective, you might as well do that.
You do not view Thailand from your experiences in Thailand the way someone in Biafra or Senegal would.
Furthermore, 878 million baht may sound like a substantial amount, but with 70 million inhabitants that amounts to more than 12 baht per inhabitant.
That already sounds a lot less substantial.
That will not really solve the consequences of the Coronavirus.
The question is also to what extent government measures reach the people who need them most.
For example, I received a 3% discount on my electricity bill for 50 months.
A nice amount, but the poor part of the population has had little or nothing to do with this arrangement, because they do not have air conditioning in their homes and use little electricity.
What concerns me is that all kinds of funds are being released, such as with Covid, but many people outside Thailand have no idea about that. Other funds are released to combat poverty, but for the caterpillars that is never enough and that negative is in the news and widely discussed.
The cash cow is the middle class and apparently there are many who manage to survive the jungle of Thai life, especially in Bangkok. But whether that cash cow is waiting to have to sponsor the rest of society in addition to the family is the big question. I prefer to sponsor my own child with a good education of 40.000 baht per year. This is good for 2 workers per month and also if they are Thai.
It sounds nice to always talk about people with less than 9000 baht income, but is that really the reality for the most part? Often it is the elderly who no longer have the costs of maintaining children, but they do not die of hunger either.
As long as people know how to rustle, then it's not that bad.
I can tell you that 9.000 Baht per month is a bitter reality for a large part of the population.
If things go against them, they also have to support their parents, because they can certainly not (survive) on 600 Baht per month from the government.
Whether that is the vast majority I dare not say, probably not, but a large proportion, especially if you count the elderly with an income of no more than 600 Baht from the government.
And what can you do with that 9.000 Baht?
If you send your child to secondary school, you must pay 50 Baht for lunch.
That one lunch will cost you 1.000 Baht per month.
Then as a family you still have to live somewhere, eat, drink, dress...
The village where I live is still reasonably prosperous, for no other reason than that there is a company that provides a large part of the people in the region with homework.
But if that company ever goes out of business, for example because imports from China are cheaper, the whole village will fall back into the deep poverty it knew before that company started providing work.
I don't dare to assume that people don't die of starvation.
They may not die immediately from malnutrition, but they will probably live shorter lives due to too much rice and too few other important foods such as vegetables, meat and fruit.
Much more has been reserved and paid out than the aforementioned support…
A few examples
Workers/companies are supported with a Social security support of 65% of the salary with a maximum of 15,000 thb and for a period of 3 months
Subsequently, those who lose their job after that can count on this benefit for another 200 days.
Contributions to the same fund have been reduced from 3% to 5% for 1 days
Financial institutions have stopped interest rates and sometimes even repayments between 3 and 6 months for both individuals and companies
Individuals have been paid 5,000 thb per month for 3 months
So it's a bit more extensive than suggested
Dear Johnny, I detect the usual “if you don't like it here, leave” in your story. Criticism of Thailand is quite sensitive for some, especially if they themselves are not enjoying themselves here and all ships have been burned.
However, we live here, spend our money and it is only natural to have constructive criticism of the politics here. And of course everyone thinks from their own alley and it would be nice if the baht were worth a little less. Fortunately, he has gone from 33 to 37 in recent times and around 40 would be a fair value. Look at international electronic products to see the actual price level here. Do not forget that here the VAT is only 7% and in NL it is -three times!
In addition, there is hardly any tax burden here in the upper class and middle class and everyone is busy filling their pockets by means of corruption, which keeps the lower class poor. And as mentioned earlier, a million baht is only 27.000 euros and you can do almost nothing with it in a district.
Mike,
Thailand has a progressive tax system
As everyone knows, most workers work for 15,000 thb per month or less and with the deduction options, that group pays virtually no tax
The middle and upper class you mentioned do pay and progressively more...
taxable income
(baht) Tax Rate
(%)
0-150,000 Exempt
more than 150,000 but less than 300,000 5
more than 300,000 but less than 500,000 10
more than 500,000 but less than 750,000 15
more than 750,000 but less than 1,000,000 20
more than 1,000,000 but less than 2,000,000 25
more than 2,000,000 but less than 4,000,000 30
Over 4,000,000 35
40 would be ridiculous because the EU was already in a trough before the C19 and it's a bigger mess than here
economy is shrinking more slowly than expected and that is also a sign on the wall, the first step towards recovery