Author: gqSbgCfmna

The proposal to raise value-added tax from 7% to 8.5% in 2028, and to 10% in 2030, by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas is a display of political courage rarely seen in a political landscape where politicians are quick to spend money in the name of “economic stimulus” but stay mum when asked how to finance the schemes.

Public debt reached 64.8% of GDP at the end of September and is expected to exceed 65% next year, only a short distance from the 70% permitted ceiling.

At the same time, recurrent expenditure, including salaries and the fast-rising cost of state welfare programmes, now accounts for roughly 70% of the budget and is still expanding. This places growing pressure on Thailand’s competitiveness and sovereign credit rating. Moody’s has already assigned a Baa1 rating with a negative outlook, while Fitch maintains BBB+ with a stable outlook. These warnings cannot be dismissed.

Although Thailand’s VAT legislation already allows for a ceiling of 10%, no government over the past three decades has dared to raise the rate, fearing an electoral backlash. Mr Ekniti’s proposal shows the need to confront reality instead of evading it.

A VAT increase indeed is inevitable as Thailand cannot sustain a tax-to-GDP ratio of around 16% while public debt edges closer to the legal limit and essential services face mounting long-term obligations. Without new and dependable revenue, the alternatives would be deeper borrowing or cuts to vital social programmes.

But support for a VAT rise must be conditional. Public reluctance does not stem from the tax itself but from years of watching public money diverted into political giveaways, wasteful projects and inefficient spending.

Examples abound. One recent case concerns the National Health Security Office’s questionable allocation of taxpayer funds to NGO projects while some state hospitals under the scheme complain of delays in allocations.

Before hiking VAT, the government must show how it intends to correct these failures.

The government needs to raise more money from VAT collections, to be sure, but it must be used for public benefit, and under transparent regulatory monitoring.

For example, the government must specify how the extra funds will be used and limit spending to essentials. Priority areas should include education and reskilling, healthcare, infrastructure that raises competitiveness, and research and innovation.

But raising VAT alone is not enough. The government must find a way to tax informal business and the underground economy which is thought to represent as much as 40% of total economic activity. VAT is an efficient and broadly fair tax, as people who consume more pay more. But it is not perfectly equitable because the same rate applies to both rich and poor.

Measures to cushion low-income households from the impact of higher prices will be even more necessary, especially given the steep rise in food costs despite low headline inflation, and the burden of essential goods such as medicines. If these safeguards are honoured, the public can accept that a VAT increase serves the country’s future, not political convenience.

So, if VAT is to increase, it must be raised for the right reasons: to secure Thailand’s long-term fiscal stability and competitiveness, not to finance electoral calculations or sustain a bureaucracy resistant to reform. The government has a choice, and the public is watching.

Siam Society is holding a study trip to Oman and Zanzibar, two regions once united by empire and trade and still connected by a living heritage, from Feb 10-21, next year.

Oman, located on the southeastern coast of the Arabian Peninsula and Zanzibar, a tropical island in the Indian Ocean, share a long and intertwined history. Once united under the rule of the Omani Sultanate, these two lands developed deep cultural, political and economic connections across the Indian Ocean.

This special trip is more than a travel experience but a cultural exploration led by Bilaibhan Sampatisiri, president of the Siam Society. It will take participants to explore the shared legacy from the deserts and ancient ports of Oman to the spice-scented streets and historic shores of Zanzibar.

The journey begins in Oman, where they visit the historic cities of Muscat, Nizwa and Sur, explore the Unesco World Heritage site of Qalhat, once a major hub of Indian Ocean trade, and learn about Oman’s rich seafaring past which linked Arabia with East Africa and beyond.

Then, fly across the Indian Ocean to Zanzibar, where traces of Omani influence remain visible in Stone Town’s intricately carved wooden doors, coral-stone buildings and iconic landmarks such as the Sultan’s Palace.

They will explore the island’s vibrant culture and natural beauty with visits to spice farms, the Jozani Forest — home to the rare red colobus monkey — and Prison Island, once used by Omani rulers.

The fee is 176,000 baht (171,000 baht for members). Payment in full should be made by Dec 12.

Real estate developers have reiterated their calls for the government to expedite financial and tax relief measures, noting the sector is on track to record its lowest growth in two decades.

According to Issara Boonyoung, chairman of the real estate development committee of the Thai Chamber of Commerce, all key indicators in the real estate market this year are at their lowest levels in several years.

For example, the number of newly launched projects is the lowest in 20 years, and the number of property transfers is the lowest in a decade. Meanwhile, mortgages are at their lowest level in 8-9 years.

He said important measures currently supporting the real estate sector are the Bank of Thailand’s relaxation of loan-to-value rules and the temporary reduction of mortgage registration and transfer fees, slashed to 0.01% from the normal rates of 1% and 2%, respectively.

However, these measures are scheduled to expire in June next year.

The private sector is concerned this period will coincide with the transition to a new government, which may cause delays in extending these measures, said Mr Issara. Therefore, developers would like the current government to expedite the extension.

“This issue concerns the country’s overall economy, not only the real estate sector, because real estate is linked to the entire supply chain from upstream to downstream,” he said.

In addition, Mr Issara urged the Interior Ministry to amend land size requirements for different types of residential properties by reducing plot sizes, while still ensuring quality living conditions.

He proposed the minimum plot size for detached houses be reduced from 50 square wah to 35 square wah; for twin houses a dip from 35 sq w to 28 sq w; and townhomes from 16 sq w to 14 sq w. The goal is people seeking homes in urban areas can access more affordable housing, said Mr Issara.

Soonthorn Sathaporn, president of the Housing Business Association, said 2025 will be the third year of decline for the real estate sector, with sales expected to be the lowest in 10 years.

Sales this year are expected to fall to 320,000 units, down from 340,000 units recorded last year.

Likewise, housing loans are at a nadir, declining from 700-800 billion baht a year to roughly 500 billion this year. Of this amount, around 240 billion baht is from Government Housing Bank, with the rest spread across commercial banks.

New construction permits nationwide are expected to fall to 13.5 million square metres this year, equivalent to 100,000 housing units across the country, the lowest in 15 years, said Mr Soonthorn.

He said the reduced mortgage registration and transfer fees only apply to residences priced at 7 million baht or less.

Mr Soonthorn suggested expanding the fee reduction to all units, but applying the normal fee rate to the portion of the price exceeding 7 million baht.

In addition, he recommended Thai Credit Guarantee Corporation (TCG) provide guarantees for mortgages.

While TCG indicated it may consider guarantees for income-generating properties, Mr Soonthorn said the coverage should be extended to residential properties as well — guaranteeing a minimum of 20% of each loan.

He said the loan rejection rate this year is nearly half of all applications, whereas before the pandemic the rejection rate was only 5-10%.

Many young people work independently, such as YouTubers who have no fixed salary or payslips, and they are being rejected by financial institutions despite having high annual incomes, said Mr Soonthorn.

He also proposed the government assist mortgage borrowers who may be burdened with multiple debts, such as credit card debt, instalment loans for appliances, and car loans.

These debts should be consolidated into a single loan using the home as collateral, which would help lower the interest rate, as mortgage rates are generally lower than other types of loans.

Mr Soonthorn urged the Monetary Policy Committee to lower the policy interest rate, and for commercial banks to follow suit.

In addition, he supported extending maximum leasehold terms under “leasehold asset” contracts from 30 years to 60 years to attract foreign investment from people wanting to reside in Thailand. Under this model, property ownership would still remain with Thai nationals, said Mr Soonthorn.

It all began with a song. “Lodi”, written by John Fogerty and sung by Creedence Clearwater Revival, tells of a musician stranded in a small town — out of luck but not out of hope. “Oh Lord,” he sings, “stuck in Lodi again”.

The refrain lingers — not merely about a place, but about being caught in life’s pauses, between where one has been and where one longs to go. Listening to it today, I cannot help but think of Thailand — a country that has journeyed far, yet not far enough; one that has known moments of brilliance but remains caught between aspiration and arrival.

In many ways, Thailand has its own Lodi. Decentralisation, for instance, once carried the promise of autonomy and local empowerment. It was an idea born of conviction — that citizens should be trusted to make decisions for their own communities, that power should travel outward rather than upward.

The 1997 constitution was a declaration of that hope. It spoke of democracy not as an abstract system but as a daily practice of governance — a village, a subdistrict, a town learning to manage its own future.

The momentum was real. Local councils emerged, communities debated budgets and public participation was no longer a slogan but a living experience. Yet as years passed, the journey slowed.

The Decentralisation Act still stipulates that the central government must allocate at least 35% of the budget to local governments, yet in practice, this mandate has never been enforced. The figure never exceeded 30%.

Still, the dream of autonomy was alive. More than 150,000 local officers across the nation grew into new responsibilities, learning to lead and serve under the promise of self-governance. They were pioneers of a democratic experiment that still deserves to be completed.

But Thailand’s story has never been linear. The nation often moves forward by taking a step back — adjusting, waiting and hoping again. Its governance has been pulled between two forces: the inertia of central control and the energy of local initiative.

At times, the latter seems to wane, exhausted by bureaucracy and political hesitation. Yet in other moments, it flares again — in local innovations, in community-led projects, in schools and temples that refuse to wait for permission to do what is right.

And yet, the quiet persistence of local government officers, teachers and civic-minded citizens keeps the dream of autonomy from fading. Their stories rarely make the headlines.

They are the people who organise waste collection in rural areas, who have turned abandoned schools into community centres, and who teach digital literacy to children in remote villages. They are Thailand’s unsung democrats — not in parliament or high office, but in tambons and municipalities where the ideals of self-rule live, even if faintly.

Every nation carries its own rhythm of change. Some surge ahead through revolutions; others evolve through gradual awakening. Thailand’s challenge has always been the latter — to modernise without losing its moral centre, to reform without rupturing social harmony. The question is not whether the people are ready. They have long been ready. The question is whether the system has the humility and courage to trust them.

When I listen to Lodi, I hear both weariness and resilience — the sigh of one who has travelled far but still believes the journey is worth continuing. Thailand, too, carries that tone. The dream of decentralisation was never just about administrative rearrangement; it was about human dignity — the faith that citizens can govern themselves and that true leadership is not confined to those at the top. This fire of hope was tested, delayed, sometimes even betrayed, but never extinguished.

We must also admit the truth: decentralisation alone cannot fix everything. Local governments need not only autonomy but also the capacity to act effectively. They need trained staff, transparent processes, digital tools and, above all, trust.

The central government’s role should not be to command, but to cultivate — to enable local institutions to thrive, and to ensure that equality, not privilege, defines opportunity. Real reform will not come from another policy document but from a new understanding of partnership between the state and its citizens.

Thailand once dared to dream of being a learning society — open, participatory, connected — where citizens and leaders, in both public and private life, grow wiser together. That dream is not lost, but it has only been paused. To revive it requires more than slogans; it demands leadership that sees beyond political cycles and measures progress not merely in terms of GDP but in the growth of civic confidence.

Development, after all, is not about how much the government spends, but how much the people can do with what they are given.

In times of doubt, a song like Lodi reminds us that progress is rarely straight or smooth. Every generation inherits both unfinished tasks and unfolding possibilities. The traveller in Lodi did not give up; he simply paused, reflected and prepared to move on. So too must Thailand. We are not stuck because we are incapable, but because we have yet to align our courage with our convictions.

If there is a lesson in Lodi, it is that journeys worth taking are seldom quick. They test patience, reveal character and teach humility. Thailand’s decentralisation– like democracy itself — is not a destination but a direction for the country.

The question is not when we will arrive, but whether we will keep walking. This article is written in the same spirit as the song Lodi — a lament for Thailand’s unrealised potential, yet a quiet faith that her journey is not yet finished, and that each pause holds within it the promise of renewal — of a people ready to chart their own new beginning.

For Thailand, the unfinished journey is not a burden but an invitation — from those who govern to those they serve — to walk together with trust and purpose, making the road ahead more inviting, so the nation need not return to square one.

TV Girl, an American indie pop band, will give their Bangkok debut concert “TV Girl Perform Their Hits Live” at the Samyan Mitrtown Hall of Samyan Mitrtown, Rama IV Road, on Dec 1 at 8pm.

Formed in San Diego in 2010 as an outlet to blend a love of Spector-esque girl group pop with hip-hop, TV Girl consists of lead vocalist Brad Petering, drummer Jason Wyman and keyboardist Wyatt Harmon.

Featuring shimmering vocals and sampled beats, their self-titled debut mini album of the same year turned heads immediately. They released two more mini albums before their first full-length album French Exit was launched in 2014.

The album kept true to the TV Girl charm with a bevy of electronic samplings infused throughout light and airy guitars, whirring organs and ethereal vocals that tell the tale of moody characters fuelled by revenge as often as love, underpinned by a desperation and deep yearning to connect.

Their second album Who Really Cares followed in 2016, finding the band doubling down on their heavy use of samples. The record saw TV Girl combine the aesthetic of 90s hip-hop with modern psychedelic pop, offering a glimpse into the psyche of a love-scorned 20-something.

The band released their latest record Grapes Upon The Vine in 2023. Their most mature effort yet, the album features extensive use of gospel samples as it explores themes of commitment, God and the afterlife, not without TV Girl’s cynicism and biting wit.

Backed by gospel singers and a live band, TV Girl has performed around the world in theatres, arenas and festivals. After Bangkok, the trio will be gracing stages in Singapore, Taipei and Tokyo.

2024 was the hottest on record globally. In Asia and the Pacific, Bangladesh was the worst-hit country, with about 33 million people affected by lower crop yields that destabilised food systems, along with extensive school closures and many cases of heatstroke and related diseases. Children, the elderly and low-wage earners in poor and densely populated urban areas suffered the most, as they generally had less access to cooling systems or to water supplies and adequate healthcare. India, too, was badly affected, with around 700 heat-related deaths mostly in informal settlements.

Higher-income areas usually lie in cooler, greener neighbourhoods, so the hottest districts are often the poorest — adding to social inequality. In the city of Bandung, Indonesia, for example, a study shows that there can be temperature differences of up to 7°C between the hottest and coolest parts of town.

Future prospects for the region will depend critically on the progress of climate change. Under a high-emissions scenario, we project that extreme heat will be more frequent, intense and widespread — what were once occasional events will become seasonal or even year-round phenomena. Rising temperatures also affect other parts of the Earth’s ecosystem — notably glacial melt. Warming in the Arctic can influence weather, precipitation and glacial behaviour across Central and South Asia. Globally, this century, glaciers have lost about 5% of their volume. By 2060, under a high-emissions scenario, the Islamic Republic of Iran, Mongolia, Myanmar, Turkey and Uzbekistan could lose more than 70% of their glacier mass. These phenomena also add to sea-level rise, raising existential risks for some countries in the Pacific.

To tackle these challenges, countries will meet this week at the United Nations Economic and Social Commission for Asia and the Pacific to consider opportunities to integrate heat risk into early warning systems and development planning. The key priority is to move from reactive heat risk management to long-term, science-informed strategies. Policy actions are needed at local, national, regional and global levels. This is the International Year of Glacial Preservation, which offers a critical opportunity for collective action.

At the local level, nature-based solutions such as lining streets with trees, urban parks, green roofs and wetland conservation help lower urban temperatures. These measures can increase shade, promote evapotranspiration and act as heat sinks, reducing heat island effects. Vegetation and tree canopies can reduce peak summer temperatures by up to 5°C. While effects vary by vegetation type and density, green roofs and walls in Singapore, for example, have been shown to reduce surface temperatures by up to 17°C and ambient air temperatures by as much as 5°C.

Countries in Asia and the Pacific can significantly reduce heat-related illness, mortality and disruptions to livelihoods by building heat-ready, multi-hazard early warning systems. Expanding heat-health warning systems in just 57 countries could save approximately 100,000 lives each year.

To support countries, ESCAP plans to scale-up climate-responsive and inclusive social protection schemes that include technical support for heat-specific social protection provisions that ensure heat readiness, along with income and non-income support, especially for the poor living in densely populated urban areas.

Additionally, recognising the benefits of nature-based solutions, our efforts can strengthen collaboration among national governments, municipalities and local communities to create green, cooling cross-border corridors.

These passages can chill the air, reduce surface temperatures and provide buffers against desertification, land degradation, drought and sand and dust storms.

Finally, we must push the use of innovative space solutions to strengthen heat preparedness in early warning systems. Despite the proven benefits of early warning systems, coverage remains incomplete. Only 54% of global meteorological services issue warnings for extreme temperatures, and even fewer provide alerts for heatwaves or thermal stress. In Nepal, for example, a community survey revealed that about three-quarters of respondents from vulnerable groups had not received any heat alerts.

ESCAP can leverage existing cooperation to share Earth observation data and technical expertise for mapping and monitoring heat exposure and city vulnerability to urban heat island effects. This information enables greater precision in forecasting and quantifying heat risk, as well as for issuing timely heat alerts.

The Asia-Pacific region has considerable experience in managing cascading disasters. But the rising threat of extreme heat adds a new level of urgency.

Every country needs to act now to meet the scale of this evolving disaster risk landscape and to turbocharge regional cooperation. ESCAP stands ready to support countries in these endeavours — as we prepare for an ever-hotter world.

To celebrate the end of the year with their fan club Monstiez, K-pop sensation Babymonster will hold “Love Monsters Asia Fan Concert In Bangkok” on Dec 27 and 28 at Impact Arena Muang Thong Thani.

Dubbed Monster Rookie, Babymonster has had an unprecedented year of success since their official debut on April 1, 2024. The multinational group rapidly became a global force when their first EP, Babymon7ter, shattered the first-week sales record for a debut girl group.

The track Sheesh achieved viral success, charting on Spotify’s Daily Top Songs Global Chart for 71 consecutive days and surpassing 300 million views on YouTube.

Their momentum continued with the release of their first full-length album Drip which debuted at No.149 on the US Billboard 200. Recognised by Billboard as one of the most promising K-pop rookies and celebrated as “Next Generation YouTube Queens”, Babymonster became the fastest K-pop girl group to reach 10 million YouTube subscribers.

The group is fresh off a massive 20-city world tour and the recent release of their second mini-album We Go Up on Oct 10. Organised by Live Nation Tero, “Love Monsters Asia Fan Concert In Bangkok” promises an intimate, high-energy experience — the definitive way for fans to wrap up 2025 and celebrate their incredible achievements.

Tickets cost 2,800, 3,800, 4,300, 4,800, 5,300, 5,800 and 6,800 (VIP) baht.

The proposal to raise value-added tax from 7% to 8.5% in 2028, and to 10% in 2030, by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas is a display of political courage rarely seen in a political landscape where politicians are quick to spend money in the name of “economic stimulus” but stay mum when asked how to finance the schemes.

Public debt reached 64.8% of GDP at the end of September and is expected to exceed 65% next year, only a short distance from the 70% permitted ceiling.

At the same time, recurrent expenditure, including salaries and the fast-rising cost of state welfare programmes, now accounts for roughly 70% of the budget and is still expanding. This places growing pressure on Thailand’s competitiveness and sovereign credit rating. Moody’s has already assigned a Baa1 rating with a negative outlook, while Fitch maintains BBB+ with a stable outlook. These warnings cannot be dismissed.

Although Thailand’s VAT legislation already allows for a ceiling of 10%, no government over the past three decades has dared to raise the rate, fearing an electoral backlash. Mr Ekniti’s proposal shows the need to confront reality instead of evading it.

A VAT increase indeed is inevitable as Thailand cannot sustain a tax-to-GDP ratio of around 16% while public debt edges closer to the legal limit and essential services face mounting long-term obligations. Without new and dependable revenue, the alternatives would be deeper borrowing or cuts to vital social programmes.

But support for a VAT rise must be conditional. Public reluctance does not stem from the tax itself but from years of watching public money diverted into political giveaways, wasteful projects and inefficient spending.

Examples abound. One recent case concerns the National Health Security Office’s questionable allocation of taxpayer funds to NGO projects while some state hospitals under the scheme complain of delays in allocations.

Before hiking VAT, the government must show how it intends to correct these failures.

The government needs to raise more money from VAT collections, to be sure, but it must be used for public benefit, and under transparent regulatory monitoring.

For example, the government must specify how the extra funds will be used and limit spending to essentials. Priority areas should include education and reskilling, healthcare, infrastructure that raises competitiveness, and research and innovation.

But raising VAT alone is not enough. The government must find a way to tax informal business and the underground economy which is thought to represent as much as 40% of total economic activity. VAT is an efficient and broadly fair tax, as people who consume more pay more. But it is not perfectly equitable because the same rate applies to both rich and poor.

Measures to cushion low-income households from the impact of higher prices will be even more necessary, especially given the steep rise in food costs despite low headline inflation, and the burden of essential goods such as medicines. If these safeguards are honoured, the public can accept that a VAT increase serves the country’s future, not political convenience.

So, if VAT is to increase, it must be raised for the right reasons: to secure Thailand’s long-term fiscal stability and competitiveness, not to finance electoral calculations or sustain a bureaucracy resistant to reform. The government has a choice, and the public is watching.