The Thai Shopping Centres Association asked the government to relax the draft Retail and Wholesale Business Law to cover only stores with more than 4,000 square metres and annual sales above 10 billion baht to avoid affecting Thai store owners.
The National Legislative Assembly (NLA) approved the draft law on first reading on Nov 14, stipulating that it would cover businesses with more than 1,000 sq m and with annual sales exceeding one billion bath, Thai reports said.
Kobchai Chirathivat, the association’s president, said the legislation’s definition of retail and wholesale businesses in its current form was too broad and would adversely affect shop-owners and thousands of small companies.
He said the association agreed with enacting a law to help small-scale retailers and Thai-owned businesses to survive and be competitive.
However, most companies located in shopping centres were concerned about lack of clarity in terms of procedures required to expand their businesses in the future.
The association briefed the NLA last week on the impact on retailers in shopping centres, which would be restricted in their ability to expand.
Kobchai said the law should be passed based on the original purpose of supporting the coexistence of hypermarkets and small retailers.
”If the association’s proposal is accepted, only hypermarkets would fall under this law,” he said.
Nopporn Witoonchart, the chief executive of Siam Future Development Co, added that the law would indirectly affect the shopping centre business because it would be more difficult to manage rental space.
”If the retailers in the centre cannot schedule a business plan, it means that the shopping centre developers may need to delay new investment as well,” he said.
Nopporn estimated that if the association’s proposal was rejected, the whole retail and wholesale business would lose over 100 billion baht.
He said that Siam Future Development might delay its new six-billion baht investment planned for next year if the proposal is denied.
Naris Cheyklin, Central Pattana Plc’s senior executive vice-president, said the law might delay the opening of 10 new shopping centres with estimated investment of 50 billion baht.
The association also includes 32 businesses that want to be exempted from the law. They include businesses such as clothing and accessories, shoes, eye-care and optical accessories, watches, bags and leather goods, cosmetics, furniture and home decorations, tools, toys, office equipment, stationery, handicrafts, pet accessories, cigarettes and alcoholic beverages.
