Cash injection: A worker counts 1,000 baht banknotes at a currency exchange in Bangkok. Part of the stimulus includes the government subsidising half the cost of goods, up to 200 baht per person per day. — Bloomberg
BANGKOK: The Thai government is accelerating its economic programme for the fourth quarter (4Q24), with Deputy Prime Minister Ekniti Nitithanprapas and Commerce Minister Suphajee Suthumpun detailing ambitious plans to boost gross domestic product (GDP) and push exports.
Implementing fiscal measures for urgent economic revival is a key priority of the current administration, led by Prime Minister and Minister of Interior Anutin Charnvirakul, who has announced a set of “Quick Big Win” measures designed for rapid impact.
Core stimulus: ‘Let’s Go Halves Plus’
The first core initiative is the “Let’s Go Halves Plus” (Co-Payment Scheme), which was scheduled for Cabinet deliberation yesterday.
The scheme aims to deliver a positive economic impact for the remainder of the year. The government insists its economic stimulus drive will be implemented while strictly adhering to fiscal stability.
Speaking at the “38th Anniversary of Krungthep Turakij” event on Monday, Deputy Prime Minister Ekniti revealed that the Finance Ministry will propose the “Let’s Go Halves Plus” project to the Cabinet to seek approval and allocate a budget of 44 billion baht or about US$1.4bil for 20 million entitlements.
The project forms the first pillar of the “Quick Big Win” policy, designed to stimulate the economy in the final quarter.
It will help ease the cost of living by having the government subsidise half the cost of goods, up to 200 baht per person per day.
The scheme is also intended to boost income for small merchants nationwide.
Registration for merchants under “Let’s Go Halves Plus” will open on Oct 15.
Citizens can register for entitlements via the “Pao Tang” application from Oct 20, with spending commencing from Oct 29 until the end of this year.
When combined with a top-up of the State Welfare Card, the “Rao Chana Plus” measure will cover a total of 33.5 million people, significantly increasing purchasing power towards the year’s end.
The Fiscal Policy Office estimates this action will result in a positive economic impact of 0.3% to 0.4% on the GDP, compared with a projected 0.3% expansion in 4Q24 if no intervention were made.
The project also has a long-term goal: enhancing the skills of small merchants in the digital economy, including training in accounting and improving access to credit, with resources available via the “Tung Ngern” application.
Furthermore, the scheme offers an incentive for tax compliance by granting those registered in the tax system a higher subsidy of 2,400 baht, versus 2,000 baht for non-registered individuals.
Fiscal prudence and five pillars
Ekniti confirmed the government is designing its economic policy within a strict fiscal discipline framework.
He acknowledged that high uncertainty in Thailand’s situation is a concern for rating agencies, with a potential for a negative outlook on the country’s economic standing.
He stressed that many of the new policies do not require new borrowing but instead utilise existing funds in this year’s budget, including 23 billion baht for the State Welfare Card top-up and an immediate 34 billion baht debt repayment to the Bank for Agriculture and Agricultural Cooperatives to demonstrate fiscal responsibility.
The government will pursue its policies with a focus on “short-term stimulus, long-term impact, and widespread distribution” over the next four months, centred on five key pillars.
First will be economic recovery through the “Rao Chana Plus” project.
Second, addressing household debt by working with the Bank of Thailand to use an Asset Management Co to manage low-value debts under 100,000 baht.
Third, boosting liquidity for small businesses by easing access to credit for business restructuring.
Fourth, designing a savings system for an ageing society by providing access to higher-yield government bonds as a viable savings channel.
And fifth, increasing long-term competitiveness by using an existing 10 billion baht fund from the Board of Investment to partner with the private sector for short-term workforce upskilling in future industries such technology, artificial intelligence, and smart agriculture.
Ekniti also confirmed that the public debt ceiling will not be expanded beyond 70% of GDP unless absolutely necessary, stating there is adequate fiscal policy space for effective management.
The deputy prime minister added that an inspection committee, chaired by the permanent secretary of the Finance Ministry, has been established to investigate anomalies in the to track irregular capital inflows, including those potentially linked to cryptocurrency.
Exports and consumer protection
Commerce Minister Suphajee stated that her ministry is focusing on measures to maintain price stability and farmers’ income amid constant economic volatility.
These measures include absorbing surplus agricultural production and reducing farmers’ production costs through the “Blue Flag” scheme.
She is also prioritising targeted assistance in the seven border provinces between Thailand and Cambodia.
The Commerce Ministry is taking a proactive approach to exports, particularly through government-to-government trade negotiations.
Negotiations are underway with China to increase rice purchases and with Japan and Singapore to expand market access.
A critical measure to alleviate the cost of living is the requirement for private hospitals to clearly disclose drug prices, allowing the public to check costs and choose to purchase medicines from external pharmacies.
Over 100 private hospitals from five major networks are voluntarily participating in the move towards a fairer healthcare system. — The Nation/ANN
