Thai PM says economy needs a boost, to adjust handout scheme
“There will be good news,” says Paetongtarn, who was elected premier last week
THAILAND’S new Prime Minister Paetongtarn Shinawatra said on Friday (Aug 23) the economy needed stimulation, and she was ready to adjust the government’s flagship handout scheme worth up to 500 billion baht (S$19.1 billion) to help people as soon as possible.
“There will be good news,” said Paetongtarn, who was elected premier last week, replacing Srettha Thavisin.
She has yet to form her Cabinet, and once that is done will have to resubmit her party’s flagship policy to Parliament.
“The economy really needs to be stimulated,” she said.
“If we wait for the entire process without adjustments at all, people will suffer for longer,” she added.
The so-called “digital wallet” handout scheme, which would see about 50 million Thais each receive 10,000 baht of credit via a smartphone application to spend locally within six months, was planned to be rolled out in the fourth quarter under Srettha.
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Paetongtarn’s comments came a day after her father, former Prime Minister Thaksin Shinawatra, said the handout policy was needed to spur a sluggish economy that has lagged peers.
Thaksin said the government was considering using 145 billion baht from the 2024 fiscal budget to provide handouts to 14.5 million people in September, with additional disbursements starting from October.
South-east Asia’s second-largest economy grew 2.3 per cent in the April-June quarter from a year earlier, beating expectations amid policy uncertainty following the change in government.
The state planning agency projects growth of about 2.5 per cent this year, after last year’s 1.9 per cent expansion. REUTERS
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