Thailand is set to expedite the distribution of 145 billion baht (approximately US$4.2 billion) from its “digital wallet” handout programme, aiming to provide timely support to vulnerable populations. Deputy Finance Minister Julapun Amornvivat announced this move on Monday, September 9, emphasizing the urgent need for short-term economic stimulus amidst ongoing challenges.
The government has earmarked a total of 450 billion baht (around US$13.29 billion) for this flagship handout initiative, which is designed to stimulate economic activity by transferring 10,000 baht to 50 million Thai citizens. Initially scheduled for rollout in the last quarter of the year, the programme has become a cornerstone of Thailand’s strategy to invigorate Southeast Asia’s second-largest economy, which recorded a modest growth of 2.3 percent in the second quarter.
The acceleration of the handout programme comes in the wake of a recent political upheaval. Last month, a court unexpectedly removed Prime Minister Srettha Thavisin, creating uncertainty around the timing of promised stimulus measures. In response, Paetongtarn Shinawatra, Srettha’s ally and successor, announced last week that part of the handout would be provided in cash, signaling a commitment to immediate economic support.
As of now, 32 million individuals have registered for the programme, including vulnerable groups. However, those without access to smartphones—a key requirement for receiving funds via an application—remain excluded. It remains unclear whether the initial tranche of payments, slated for later in September and funded by the 2024 budget and other sources, will include cash distributions.
Paetongtarn Shinawatra, the daughter of the influential billionaire Thaksin Shinawatra, has pledged to adhere to Srettha’s policy agenda and deliver on economic stimulus promises. Her administration released a policy statement on Sunday, outlining plans that will be presented to parliament later in the week.
Despite the government’s assurances, the handout scheme has faced criticism from economists, including two former central bank governors, who label it as fiscally irresponsible. The government, however, rejects these claims, arguing that the handout is essential for revitalizing the economy. The central bank projects that Thailand’s economy will grow by 2.6 percent this year, up from 1.9 percent in 2023, yet still trailing behind many of its regional counterparts.
The accelerated distribution of the digital wallet handout programme underscores Thailand’s urgent efforts to provide economic relief and stimulate consumer spending. By injecting significant funds directly into the hands of millions, the government aims to foster economic resilience and support recovery in a challenging global economic landscape.