ASEAN HEADLINE | Thailand to hand out USD13.8B in digital money
Thailand’s Prime Minister Srettha Thavisin. PHOTO: AP
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BANGKOK (AP) – Thailand’s prime minister said yesterday that eligible businesses and individuals can register from August for digital cash handouts, a controversial programme that will cost billions of dollars and is meant to boost the lagging economy.
The government announced in April the widely criticised ambitious plan, named the “Digital Wallet,” meant to give THB10,000 (about USD275) to 50 million citizens in digital money to spend at local businesses.
Prime Minister Srettha Thavisin posted on the social platform X, saying the registration will begin on August 1 and that he has given instructions to ensure the smooth implementation of the program.
The “Digital Wallet” was a major campaign promise of the ruling Srettha’s Pheu Thai party ahead of last year’s general election.
The government says that this scheme will cause an “economic tornado,” and Srettha has said the stimulus and subsequent consumption are expected to boost gross domestic product growth by 1.2 to 1.6 percentage points.
Memento Maxima Digital MarketingHowever, economists have criticised the programme, calling it an ineffective way to contribute to sustainable economic growth compared to other measures.
In addition, its financing has faced several hurdles, delaying its planned implementation. At first, the government said the state Bank for Agriculture and Agricultural Cooperatives would cover some of the funding needed.
However, after warnings by financial experts, it was announced that the project’s funding would come out of the 2024 and 2025 fiscal budgets.
Deputy Minister of Finance Julapan Amornvivat said at a news conference yesterday the budgetary funding became possible after the plan’s estimated cost dropped from THB500 billion (USD13.8 billion) to THB450 billion, asserting that all estimated 50 million people will still be part of the programme as only up to 90 per cent of those eligible utilised them in previous handouts.
Julapan added that the Digital Wallet committee has agreed to exclude tens of thousands of shopowners and cash recipients who have a record of committing fraud in past programmes.
The plan also has certain limitations, such as excluding certain goods that are yet to be decided, and earlier proposals suggested oil, services, and online purchases should be among them. Julapan said the Commerce Ministry would handle the exclusions set to be announced next week after the detailed plan is submitted to the Cabinet.
Thailand has in recent years suffered from a sluggish economy that appears to have deteriorated with no clear sign of growth. This month, the World Bank’s Thailand Economic Monitor projected GDP growth of 2.4 per cent for the year 2024.
The ruling Pheu Thai party had initially suggested digital wallet payments for all Thais 16 and older, but later this was limited to only lower-income Thais, defined as people with yearly incomes not exceeding THB840,000 and savings in financial institutions not totaling more than THB500,000.
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