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Private Sector in Hat Yai Laments End of Interest and Principal Payment Relief as Economy Remains Depressed

Politic12 Jul 2026 13:11 GMT+7

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Private Sector in Hat Yai Laments End of Interest and Principal Payment Relief as Economy Remains Depressed

The Democrat Party held a seminar for MPs in Hat Yai district to brainstorm responses to recurring flood disasters that repeatedly damage the economy. Meanwhile, the private sector lamented that with the expiration of interest and principal payment relief programs, the economy remains in a long downturn without signs of recovery.


At 09:30 on 12 July 2026, at Buri Sriphu Hotel in Hat Yai district, Songkhla province, the Democrat Party, led by party leader Abhisit Vejjajiva, organized a seminar for MPs and party members during the parliamentary recess. The event gathered opinions from the public and business sectors in Hat Yai, Songkhla, including representatives from the Hotel Association, Tourism Industry Council, Hat Yai Business Association, Economic Council, SME Federation, and relief foundations. Also present were academics and students from Rajamangala University of Technology Srivijaya, Thaksin University, Hat Yai University, and Prince of Songkla University, as well as Narongporn Na Phatthalung, known as Mayor Paen, the mayor of Hat Yai city, to jointly seek ways to prevent repeated flooding in Hat Yai this year.

Abhisit stated that the discussion would cover four main points: 1. Reviewing flood relief and recovery efforts, including home repairs and loans, and current status since the government claims some measures have been completed; 2. Preparing for the upcoming rainy season, focusing on relevant budgets and emergency funds necessary for response; 3. Preparing the city to handle future problems, with the party aiming to advocate for stronger measures; 4. Proposals from the private sector on urban development to avoid disaster damage and create new opportunities for the people of Hat Yai, Songkhla, and the South.

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During the seminar, Juree Numkaew, MP for Songkhla from the Democrat Party, mentioned that about 1,000 residents who were affected by the 2025 floods have still not received compensation. They are awaiting appeals on their claims, but government agencies have yet to clarify whether appeals are permitted, as this hinges on legal interpretations of appeal rights.

Adisak Ratana, speaking on behalf of the public, said the government’s relief payment of 9,000 baht is insufficient. Moreover, most disaster aid funds have not been disbursed by local authorities since the 2024 floods, citing a lack of claims from affected residents. Local agencies have not surveyed communities adequately. Across Songkhla province, more than 4,000 people remain without compensation.

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Sompol Cheewattanapong, Vice President of the Hat Yai Business Association, discussed difficulties businesses face accessing government-prepared loans. While approved loans offer six months interest relief and one year principal deferral, accessing and approving new liquidity programs remains challenging because banks must still check entrepreneurs’ credit bureau records. He suggested easing criteria and auditing project success rates at commercial banks to see how many loans were actually approved. Otherwise, this could become a ticking time bomb as the six-month interest holiday expires. The economy in Songkhla and Hat Yai remains sluggish, forcing businesses to bear interest costs amid declining purchasing power. Hotel businesses are especially worried about the November flood season and call for all sectors to build confidence through effective prevention plans to reassure tourists.

  . . .

Patthira Suwanwong, Head of the Political Science Department at Hat Yai University, and Nawapol Petchthun, student representative of the Faculty of Law at Thaksin University, urged local leaders and the government to survey Hat Yai district to identify safe, flood-free zones for evacuation. These should be fully prepared for relocation and storage of belongings to minimize damage. They also stressed the need for clear communication about the 'Hat Yai Model.' This would inform residents where to evacuate, as many younger students remain unaware of necessary preparations.

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Narongporn Na Phatthalung, or Mayor Paen, explained that local authorities need to expand retention ponds by raising their capacity and dredge the 430 kilometers of canals and drainage systems. So far, only about 200 kilometers have been dredged. He allocated and transferred 50 million baht for dredging another 80 kilometers, but more than 100 kilometers still require urgent completion before the rainy season. Without dredging, floodwaters will overflow into homes as seen in Phuket. He added that 150 vehicles and various equipment were submerged by floodwaters, and currently, all financial reserves are depleted. Additionally, no central budget allocations have been received yet.

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Chaiyachana Deddecho, list MP and deputy party leader overseeing the South, noted that initial flood response plans revealed two key issues: 1. There was no public warning or disaster alert communication to residents in Hat Yai district; 2. No designated shelters were available during floods. He called for exemptions from regulations to allow, for example, the use of irrigation department water pumps by Hat Yai and Kho Hong municipalities, which currently require local fuel reimbursements. This reflects a need for provincial-level integration led by the governor, who must oversee comprehensive planning and budgeting, including floodwater diversion. Since floodwaters in Hat Yai flow toward Songkhla Lake, urban planning adjustments must be determined accordingly.

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Chuan Leekpai, list MP and former prime minister, remarked near the seminar’s end that Songkhla is one of the most prepared provinces in the South, with irrigation offices and military units present. However, the flooding occurred after the Songkhla governor was recently transferred from Krabi province. This was due to the Interior Ministry’s politically motivated reassignments to benefit elections, disregarding operational concerns. Thus, effective management depends greatly on leadership. Regarding the results of this broad consultation to prevent flooding in Hat Yai, Abhisit, as party leader, will consolidate the findings and present them to the government, hoping there will be no more floods or upcoming elections that could cause further governor reshuffles.