According to local media Bangkok Post and Reuters on the 11th, Thailand’s Economic Stimulus Committee approved a plan the day before to pay 10,000 baht per person to 2.7 million citizens aged 16 to 20.
Deputy Prime Minister and Finance Minister Pichai Chunghawachira said the subsidy will be paid through a “digital wallet” in the second quarter after cabinet approval.
When the government pays digital currency, citizens can use it like cash through smartphones.
Deputy Prime Minister Pichai explained that the use of the digital wallet system allows the government to identify information on the use of subsidies, helping to establish policies in the future.
The Thai government began subsidies last year to revitalize the economy.
It provided 10,000 baht per person in cash to about 14.5 million vulnerable people in September last year and about 3 million elderly people in January this year.
In the last general election, the current ruling party pledged to provide 10,000 baht subsidies per person.
However, opposition parties protested that it was a populist policy, and economics and the Bank of Thailand (BOT) also opposed it, saying they were concerned about side effects such as the national financial burden and rising prices.
The government is pushing ahead with subsidies amid controversy.
“The subsidies paid will spread across the country, easing the burden on household debt,” Deputy Prime Minister Piachi said. “The government thinks the policy is worth it.”
Thailand’s economy is in a state of contraction due to the sluggish tourism industry and exports caused by the COVID-19 crisis.
Thailand’s gross domestic product (GDP) grew 2.5 percent last year, less than expected. This is half of Indonesia’s growth rate of 5.0 percent last year, the largest economy in Southeast Asia.
There are also concerns that Thailand could suffer from U.S. President Donald Trump’s tariff war.
Thailand recorded a trade surplus with the U.S. worth $35.4 billion last year.
Thai Prime Minister Patton Shinawatra said on social media the day before, “Thailand’s economy is forecast to grow 3% this year, but the government believes it will exceed this figure.”
SAM KIM
US ASIA JOURNAL
