Thailand's Prime Minister Paetongtarn Shinawatra gestures during a group photo session ahead of a special cabinet meeting at the Government house in Bangkok, Thailand, September 7, 2024. - Reuters
BANGKOK (Reuters): Thailand's new government published a policy statement on Sunday that Prime Minister Paetongtarn Shinawatra will deliver to parliament at a session from Thursday (Sept 12) marking the formal start of her administration.
Following are key points of the statement from Paetongtarn, 38, who has said her government will prioritise stimulating Southeast Asia's second-largest economy while continuing with the policies of her predecessor, Srettha Thavisin.
* Restructure debt, including people's housing and car loans, and tackling informal debt through measures with government and commercial banks, and asset management companies.
* Maintain Srettha's signature plan for digital wallet handouts targeting vulnerable groups to stimulate the economy. The scheme initially calls for 50 million Thais to receive 10,000 baht ($300) each through a smartphone application. The statement does not specify the method of implementation or budget.
* Protect small and midsize enterprises from competition from overseas via e-commerce platforms.
* Reduce energy and utility costs for the public by the developing a strategic petroleum reserve, negotiating with Cambodia to jointly explore new sources of natural gas in the neighbouring countries' overlapping maritime area and introducing a one-price mass-transit cost in Bangkok's public transport.
* Legalise some underground economic activities to increase state revenue.
* Expand Thailand's tax base, including a negative income tax for low income earners.
* Boost agriculture and tourism, including creation of big entertainment complexes that offer gambling.
* Promote medical cannabis to add value to the economy.
* Promote transport mega-projects, including the $30 billion Landbridge project in the south, connecting the Indian Ocean with the South China Sea through transportation networks.
CONTEXT
* Paetongtarn was elected prime minister by parliament last month after political turmoil stemming from Constitutional Court decisions to remove Srettha for ethical violations and dissolve the opposition Move Forward party over an election campaign that the court said risked undermining the constitution.
* The prime minister faces challenges from a floundering economy and sliding popularity of her Pheu Thai party due to its failure to deliver on the one-time digital wallet money handout programme, costing the government between 450 billion and 500 billion baht ($13 billion-$15 billion) after almost a year in power.
* Many of the statement's policies reflect ideas mentioned last month by Paetongtarn's father, the divisive former Prime Minister Thaksin Shinawatra, who is widely seen as wielding power behind the scenes.
($1 = 33.7100 baht) (Reporting by Panu Wongcha-um and Panarat Thepgumpanat; Editing by William Mallard) - Reuters
