The Thai Shopping Center Association, or TSCA, presented its vision for driving the country forward through the shopping center business sector during a meeting with Prime Minister General Prayuth Chan-o-cha and a government working group. This initiative aims to showcase the collaboration between the public and private sectors to advance Thailand, accelerate economic recovery, and support entrepreneurs and workers in regaining their income as the COVID situation in the country continues to improve.

 

       

       Mr. Nopporn Witoonchat, President of the Thai Shopping Center Association and Chairman of the Executive Board of Siam Future Development Public Company Limited stated, "The shopping center business sector, represented by the Thai Shopping Center Association, feels honored and deeply grateful to the Prime Minister and the government for recognizing the importance of this sector and providing the opportunity to present our vision as part of the master plan for national development, which will help drive the economy and tourism in Thailand.

      ‘Shopping centers’ are a significant business sector that plays a crucial role in the country's economy, serving as a hub for over 120,000 entrepreneurs, generating employment for more than 2.4 million people, and creating a circular economy worth over 750 billion baht annually. Shopping centers are like a ‘big home’ for both small and large entrepreneurs and serve as the ‘source’ that initiates and consolidates trade, thus impacting the economy at all levels of the country."

“Since the onset of the COVID crisis until now, the shopping center business sector has continuously made efforts to support the country’s SMEs for over six months, with total lost revenue and aid amounting to nearly 200 billion baht. This includes reducing rent by 30-100% to ensure that shops maintain cash flow and sustain their businesses, promoting sales with discounts of 50-90%, and providing free selling space for SMEs and various professions affected by this crisis to stimulate consumer spending. All of these measures are short-term solutions to support businesses, but they are not sufficient for long-term survival.”              

       Ms. Walaya Jirathiwat former President of the Thai Shopping Center Association for two terms (2014-2018) and Deputy CEO of Central Pattana Public Company Limited stated, “After we have united to demonstrate the strength of the Thai people across all sectors, including the government, medical personnel, various agencies, the private sector, and the public, to overcome this major crisis together, we now aim to accelerate the recovery and drive the economy of the country. The Thai Shopping Center Association would like to propose an economic and tourism stimulus plan for the government to consider incorporating into the national development plan. We summarize the vision of the shopping center business sector into three parts: short-term, medium-term, and long-term plans, which are as follows:  

Short-term Plan: Promote SMEs to resume trading, maintain employment, and stimulate consumer spending through measures such as low-interest loans, promoting the 'Shop and Travel to Help the Nation' project by approving the 'Eat, Shop, Use' measure, distributing 3,000 baht per person, and extending this to small vendors in food centers to participate. Consider approving measures to alleviate expenses through shopping centers to support SMEs further, following the COVID relief proposals regarding taxes and expenses submitted by the association on April 15 and June 29, 2020, and extend the investment assistance measures and renew the 90% reduction in land and building taxes until 2023.

Medium-term Plan: Continuously promote investment by elevating shopping center businesses to be part of the national development master plan, allowing investments in special development zones, promoting seamless connectivity between buildings, transportation systems, pedestrian bridges, electric trains, highways, etc., considering adjustments to related laws to align with the new normal lifestyle, and promoting tax measures for investment.

Long-term Plan: Push for Thai shopping centers to become a global tourism destination, enhancing the country's competitiveness by upgrading the quality and design of Thai products to attract tourists while gradually reducing import taxes to compete with neighboring ASEAN countries. Additionally, organize nationwide campaigns to promote attractions and unique products within shopping centers and cultural events, with the government as the host, such as the Ministry of Culture and the Ministry of Commerce, to jointly promote Thai Art, Music, and Food in shopping centers, such as the Bangkok Art Biennale, making Thai shopping centers a shopping paradise for tourists from around the world.

 

       

       The main target group that the association is urgently pushing for assistance is SMEs nationwide to maintain the business chain, prevent business closures, sustain employment, reduce unemployment rates, and stimulate cash flow in the system, as well as alleviate the burdens on entrepreneurs from upstream to downstream, so that all businesses can survive together.       

       For the medium-term plan, we hope for continuous investment and the elevation of shopping center businesses to be part of the national strategic plan, as we recognize the role of shopping centers in significantly stimulating the economy and tourism. In the long term, we aim to position Thailand as a destination for tourists worldwide, with shopping centers as one of the main magnets to attract revenue for the country.”

If the government promotes and implements the vision presented above, it will help enhance and build confidence for shopping center entrepreneurs to proceed with their investment plans, which are projected to exceed 171 billion baht within the next three years (approximately 57 billion baht per year), leading to continuous employment and supporting income distribution and improved living standards according to the national strategy master plan. The association sincerely thanks the government for the opportunity to present this plan and hopes that it will be beneficial and contribute to driving the economy and tourism sectors forward rapidly, helping all sectors affected by the COVID crisis to move forward once again.

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Currently, the Thai Shopping Center Association consists of 13 shopping center business operators, including:

Central Pattana Public Company Limited, Siam Future Development Public Company Limited,

Seacon Development Public Company Limited, Siam Piwat Company Limited,

MBK Public Company Limited, Rangsit Plaza Company Limited, LH Mall Hotel Company Limited,

The Platinum Group Company Limited, KE Land Company Limited, The Mall Group Company Limited,

Index Living Mall Company Limited, Pacific Park Sriracha Company Limited, and Boonthavorn Ceramic Company Limited.

 

Source: Thai Shopping Center Association