Wednesday, July 28, 2021

business

Semi-lockdown in 6 provinces to cost at least THB40 billion: Kasikorn


The month-long partial lockdown in six provinces will cost Thailand at least 40 billion baht, according to analysis by Kasikorn Research Centre (KResearch).

From Monday, construction sites were shut and restaurant dining banned in Covid-19 dark-red zone provinces of Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan and Samut Sakhon.

KResearch estimates the 30-day measure will wipe 0.25 per cent off Thailand’s gross domestic product (GDP).

The government has allocated a relief budget of 8.5 billion baht to help businesses and workers affected by the restrictions.

However, KResearch said the partial lockdown would have a spillover effect on other groups in the business and supply chains. Also, construction firms may face legal problems related to contract deadlines, with penalties for delayed work potentially adding to their cost burden.

The research house said the situation ahead is still full of uncertainties. The effects would be limited if the restrictions are lifted after one month, but if daily infections do not decrease, the damage would increase and affect a wider range of people, it added.

Published : June 30, 2021

By : The Nation