Thaksin Backs 500 Billion Baht Stimulus Plan for Thai Economy
Former PM Thaksin Shinawatra endorses 500 billion baht economic stimulus plan. His daughter, newly elected PM Paetongtarn Shinawatra, likely to implement the controversial "digital wallet" scheme.
Thaksin Shinawatra, former Prime Minister of Thailand, has voiced support for a substantial economic stimulus plan. The 500 billion baht ($14.53 billion) initiative, a key campaign promise of the Pheu Thai party, aims to invigorate Thailand's sluggish economy.
Speaking at an event in Bangkok on August 22, 2024, Thaksin emphasized the necessity of the "digital wallet" scheme. This program would provide 10,000 baht ($290.70) in credit to approximately 50 million Thais via a smartphone application, to be spent locally within six months.
The plan, originally scheduled for implementation in the fourth quarter of 2024 under former Prime Minister Srettha Thavisin, faced uncertainty following Srettha's dismissal. However, Thaksin's endorsement suggests that his daughter, newly elected Prime Minister Paetongtarn Shinawatra, will likely proceed with the initiative.
Thaksin outlined several areas for economic reform:
- Agriculture sector modernization
- Tourism industry expansion
- Protection against low-cost Chinese imports
- Coordination between fiscal and monetary policies
- Household debt restructuring
- Improved loan access for small businesses
The former prime minister, who returned to Thailand in 2023 after 15 years in self-imposed exile, stressed the importance of enhancing Thailand's economic competitiveness. He suggested "small steps of protectionism" to safeguard the nation's economy from an influx of inexpensive Chinese products.
Thailand, known as the "Detroit of Asia" due to its significant automobile production, faces challenges in maintaining its economic standing. As the second-largest economy in Southeast Asia, the country grapples with high household debt, which reached 90.9% of GDP in the first quarter of 2023.
The proposed stimulus plan has faced criticism from economic experts and the Bank of Thailand. However, Thaksin argues that the initiative will provide "more precision for the stimulation of economy."
Thailand's economy heavily relies on tourism, which contributed about 20% to the country's GDP before the COVID-19 pandemic. Thaksin emphasized the need to boost capacity in this sector, including expanding Bangkok's main airport, Suvarnabhumi, which opened in 2006 and is one of Asia's busiest airports.
As Thailand navigates these economic challenges, the implementation of the "digital wallet" scheme and other proposed reforms will be closely watched by both domestic and international observers.
"It's about stimulating the economy."
