Thaksin Shinawatra, Thailand’s ex-prime minister, expressed support for his party’s 500 billion baht ($14.5 billion) handout plan aimed at revitalizing the country’s sluggish economy. His daughter, Paetongtarn Shinawatra, was recently elected as the Prime Minister by parliament, and Thaksin is anticipated to influence her governance closely, despite holding no official government position.
In a speech in Bangkok, Thaksin emphasized the necessity of the economic stimulus package, a campaign pledge from the previous year’s election. The proposed “digital wallet” scheme intends to provide 10,000 baht of credit to approximately 50 million Thais through a smartphone application for local spending within six months.
Despite initial concerns following the removal of the previous Prime Minister, Thaksin’s affirmation suggests that Paetongtarn is likely to proceed with the plan, which has faced criticism from experts and the central bank. The government plans to utilize 145 billion baht from the 2024 fiscal budget to distribute handouts to 14.5 million individuals starting in September, with subsequent disbursements from October onwards.
The ex-prime minister gave a touch on Thailand’s equity market, guiding an idea of using government-backed Vayupak Fund to support the market and initiate a buyback when share prices drop to a certain level.
Thaksin also addressed the need for safeguarding the economy against the influx of low-cost Chinese goods, advocating for measures of “protectionism” to ensure fair competition. He stressed the importance of coordination between the finance ministry and central bank to align fiscal and monetary policies effectively, emphasizing the urgency of tackling Thailand’s escalating household debt, which currently stands at 90.8% of GDP.
Additionally, Thaksin called for reforms in the agriculture sector to enhance competitiveness and income, alongside infrastructure improvements in tourism, emphasizing the expansion of Bangkok’s main airport to support growth.
