2024-12-18
The Thai government, headed by the Prime Minister Paetongtarn Shinawatra, has launched an economic stimulus program by distributing 10 baht to citizens via a digital wallet. The program is divided into three phases to ensure efficient distribution and maximum financial impact.
Phase 1:
The first phase covered 14 million people and has already been implemented. This initial distribution has helped boost Thailand's GDP by over 3% in the fourth quarter of 2024.
Phase 2:
The second phase targets around 4 million senior citizens and is planned to be implemented no later than the Chinese New Year 2025. Unlike the first phase, these funds will be distributed in the form of cash.
Phase 3:
The third phase is intended for the general public and will be delivered via a digital wallet. The government emphasizes that the use of digital tools is essential to improve the efficiency of government services and to ensure prompt and accurate distribution of funds. This phase is planned to be implemented in 2025.
Prime Minister Paetongtarn underlines that this initiative aims not only to stimulate the economy, but also to strengthen the connection between the government and citizens through digital technology. This is expected to improve the efficiency of future government services and ensure that citizens receive benefits faster and more directly.
The first phase of Thailand's economic stimulus program has received a mixed reception from citizens and experts. Here are some insights and reactions:
Results from the first phase
- Economic impact: According to preliminary reports, the phase helped to increase consumption significantly, with a positive effect on SMEs. It is estimated that Thailand's GDP increased by over 3% in the fourth quarter of 2024, which the government sees as a sign of the program's success.
- Distribution efficiency: Many citizens reported that they could easily use the funds via the digital wallet, which is seen as an important step towards a more digitized economy in Thailand.
Citizens' opinions
- Positive feedback: Many Thais appreciated the direct support, especially in economically disadvantaged areas. For several families, the support meant opportunities to buy necessities and pay off debts.
- Criticism and concern: Some expressed concern about how the money is being used. There are also voices that question whether the program will have a long-term effect or whether it risks increasing the state's debt burden.
Experts' views
- Financial sustainability: Economists have warned that while the immediate effects are positive, repeated stimulus could create dependency on the government and lead to increased inflation.
- Digitization as an advantage: The program has been praised for driving digitization in the country. The digital wallet has become a practical solution that enabled fast and secure distribution of support.
However, the government sees the phase as an important lesson and plans to adjust the future phases based on experiences from the first. The focus will be on improving the digital infrastructure and educating the population in the use of digital services.
Text: The editorial staff
Image license: orlandow, Pixabay, original image