In a meeting of the Economic Stimulus Policy Committee on November 19, the Ministry of Finance will propose one-time cash assistance of 10,000 baht for elderly citizens, the next phase of the Thai government Digital Wallet scheme.
The proposing eligibility criteria include being aged 50 or older, registered to receive the money via the government app, and previously not received assistance under the vulnerable groups program.
Krungsri Securities estimates that 3 to 4 million people could qualify for this aid, and predicts they will spend it quickly, similar to the vulnerable groups in Phase 1. This will help boost circulation within the economy, positively impacting sectors like hire purchase such as Muangthai Capital PCL (MTC), JMT Network Services PCL (JMT), retail such as (CP All PCL (CPALL), Berli Jucker PCL (BJC), and banking such as Kasikornbank PCL (KBANK), The Siam Commercial Bank PCL (SCB). Krungsri estimates that the economic impact will range between 0.15% to 0.175% of GDP, with a potential overall effect of 1.3%.
Deputy Minister of Finance, Mr. Paophum Rojanasakul, confirmed that all registered citizens will receive the 10,000 baht, as the government has allocated a budget of 180 billion baht to support it. However, the specific timing and conditions for distribution will be finalized after further discussion in the committee.
In addition to supporting the public, Asia Plus Securities highlighted that this proposal has generated positive sentiment in the stock market, particularly benefiting companies in hire purchase, retail, and the agriculture-food sectors.
Key companies in the hire purchase sector include Muangthai Capital PCL (MTC), Srisawad Corporation PCL (SAWAD), Ngern Tid Lor PCL (TIDLOR), and Bangkok Commercial Asset Management PCL (BAM).
In the retail sector, CP All PCL (CPALL), Central Retail Corporation PCL (CRC), Berli Jucker PCL (BJC), Home Product Center PCL (HMPRO), and Com7 PCL (COM7) are expected to benefit.
Meanwhile, companies in the agriculture-food sector include Thai Union Group PCL (TU), Charoen Pokphand Foods PCL (CPF), Carabao Group PCL (CBG), Sappe PCL (SAPPE), Srinanaporn Marketing PCL (SNNP), Ichitan Group PCL (ICHI), NSL Foods PCL (NSL), and MK Restaurant Group PCL (M).
