The Thai cabinet has approved comprehensive relief measures with a total amount exceeding 7.7 billion baht (950 million ringgit) aimed at alleviating the economic shock caused by the Middle East conflict and reducing the risk of stagflation.
According to a report by Lianhe Zaobao, Thai Deputy Prime Minister and Finance Minister Arkhom Termpittayapaisith announced at a press conference after a special cabinet meeting on the 11th that the cabinet has approved the use of central budget funds to help citizens cope with the economic pressure caused by soaring energy prices.
These measures are intended to ease the burden on vulnerable groups, transport industry operators, and farmers. Arkhom noted that the government wants to ensure that upstream supply chains and farmers have sufficient liquidity to sustain their operations and avoid passing on cost burdens to consumers.
The funds allocated for this aid package are mainly divided into three parts, of which about 6 billion baht (740 million ringgit) are used to support vulnerable groups, including increasing the monthly basic necessities subsidy for 13.22 million people holding national welfare cards from 300 baht (37 ringgit) to 400 baht (49 ringgit). This subsidy will be effective from April 13 to May 12.
Additionally, about 1.4 billion baht (173 million ringgit) will be used to support the transport sector and commercial vehicle drivers, and about 300 million baht (37 million ringgit) to ease the pressure of rising living costs on the public.
Arkhom said that if the government does not take timely countermeasures, it could lead to a slowdown in the country's economic growth, intensified inflation, and even stagflation.
This plan also encourages a transition to clean energy, and through state-owned banks will provide low-interest loans for the purchase of solar panels, electric vehicles, and energy-efficient housing, thus mitigating energy price volatility.
He pointed out that the Middle East conflict has triggered a global crisis, which, besides impacting energy supply and prices, could escalate into a broader commodity and price crisis.
"The Middle East conflict could have a long-term impact; therefore, the government is taking these measures not only to provide short-term relief, but also to help the public and businesses prepare for long-term challenges."