Thai Cabinet approves S$5.95b stimulus package amid new outbreak

[BANGKOK] Thailand's government approved a set of economic stimulus measures worth 140 billion baht (S$5.95 billion) to counter the impact from the nation's biggest coronavirus outbreak yet.

The measures - which include cash handouts to welfare-card holders and special groups, co-payments and cash rebates - are expected to be implemented from July, Anucha Burapachaisri, a government spokesman, said Tuesday.

Thailand's economy is facing strong headwinds from the country's latest Covid outbreak, which has totaled more than 130,000 cases since it began in Bangkok nightlife venues in April. Bank of Thailand Governor Sethaput Suthiwartnarueput said Monday the economy may not return to pre-pandemic growth levels until early 2023, three quarters later than previously expected.

The latest aid is on top of an 85.5-billion baht package last month that extended two cash handout programs implemented. The two latest packages will be financed by borrowing under a 1 trillion baht programme approved in April 2020, Mr Anucha said.

King Maha Vajiralongkorn last week endorsed a further US$16 billion borrowing plan to finance relief measures when the 1 trillion baht programme runs out.

The new outbreak has weakened prospects for an economic recovery, with Thailand's central bank and the main economic-planning agency both warning of risks to their growth forecasts if a reopening of the country's key tourism sector is delayed.

The planning agency said last month that after contracting 2.6 per cent in the first quarter of the year, the economy now is expected to grow 1.5 per cent-2.5 per cent for all of 2021, compared with February's 2.5 per cent-3.5 per cent forecast.

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