Savings rise 10 folds, amid big gap
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Thailand's savings have increased in the past two decades but the majority of it is controlled by upper middle-income households, according to the finding of a Thailand Development Research Institute research.
The research found that the number of households which hold no extra cash at all dropped from 48 per cent of all households in 1988 to 25 per cent in 2009.
Meanwhile, the average saving of the households with extra cash also rose ten folds from Bt507 per month to Bt5,145 per month during the period.
TDRI researcher Chaiyasit Anuchitworawong attributed the higher saving to the faster growth pace of income compared to expenses.
Still, he reckoned the income gap may stem from education gap. Those with higher education tend to show higher savings than those without education he said. Most of the low-income also lack financial literacy.
He suggested the government focus more on improving access to education as well as promote financial literacy. Depositing money at banks should not be the only option, he said.
Meanwhile, the income tax base should be improved along with tax distribution methods, to help the underprivileged.
