(Bangkok, 24th) – Thailand's new government will announce a short-term economic stimulus plan to boost consumption and support groups trapped in a debt crisis, striving to broaden its support base within the next four months.
According to its schedule, Prime Minister Anutin's government will present its policy statement to parliament on October 1st and 2nd. Siri Phong, deputy leader of the Bhumjaithai Party, said the government will propose measures to reduce living costs, including reviving subsidy projects and lowering energy and transport expenses.
In an interview with Bloomberg, Siri Phong said: “The policy will focus on resolving people’s economic livelihood issues and short-term economic stimulus. The baht also needs to be managed, as it is too strong. The government equally prioritizes currency stability.”
On Monday, Tapaeni, Director of the Tourism Authority of Thailand, met with the new government's economic management team and members of the Thai Bankers’ Association, stating that a strong baht risks causing a 17% drop in Thailand's tourism revenue.
She noted the baht’s appreciation has had a significant impact on tourism, especially for foreign visitors, who will face increased travel costs including airfare, hotel rates, dining, and attraction tickets.
Anutin became prime minister in August this year after Phetongtan was removed from office. According to an agreement between Bhumjaithai Party and the People's Party, Anutin has pledged to dissolve the House of Representatives within four months after delivering his policy address. This means Thailand will likely hold elections in February next year.
Despite the tight schedule, the “win fast” policy may boost Anutin and the Bhumjaithai Party’s nationwide support ahead of the next election.
To stimulate the economy, the new government will resume the subsidy program first launched by the military-backed government during the pandemic. Eligible Thai citizens will receive digital cash subsidies (exact amount yet to be determined), used to pay for 50% of the price of goods and services; for those submitting tax returns, the government's co-payment ratio will be raised to 60%.
Efforts to lower living costs will also include reducing electricity prices from January next year and helping consumers burdened with high household debt.
Siri Phong said the government will assist agricultural, business, and individual debt restructuring, write off bad loans for borrowers with debts under 1 million baht (approximately 130,000 ringgit), and help “good borrowers” access low-interest credit.
Anutin's policy statement will also touch on the Thai-Cambodian border issue. Siri Phong stated that Thailand will not lift border restrictions until Cambodia withdraws weapons and troops to pre-conflict positions.
Meanwhile, the government will offer tax incentives to encourage companies with supply chains in Cambodia to relocate to Thailand, and may provide new jobs for approximately forty thousand Myanmar refugees temporarily residing in Thai camps after fleeing civil war. The newly added workforce could replace about twenty thousand Cambodian workers who have left.
According to its schedule, Prime Minister Anutin's government will present its policy statement to parliament on October 1st and 2nd. Siri Phong, deputy leader of the Bhumjaithai Party, said the government will propose measures to reduce living costs, including reviving subsidy projects and lowering energy and transport expenses.
In an interview with Bloomberg, Siri Phong said: “The policy will focus on resolving people’s economic livelihood issues and short-term economic stimulus. The baht also needs to be managed, as it is too strong. The government equally prioritizes currency stability.”
On Monday, Tapaeni, Director of the Tourism Authority of Thailand, met with the new government's economic management team and members of the Thai Bankers’ Association, stating that a strong baht risks causing a 17% drop in Thailand's tourism revenue.
She noted the baht’s appreciation has had a significant impact on tourism, especially for foreign visitors, who will face increased travel costs including airfare, hotel rates, dining, and attraction tickets.
Anutin became prime minister in August this year after Phetongtan was removed from office. According to an agreement between Bhumjaithai Party and the People's Party, Anutin has pledged to dissolve the House of Representatives within four months after delivering his policy address. This means Thailand will likely hold elections in February next year.
Despite the tight schedule, the “win fast” policy may boost Anutin and the Bhumjaithai Party’s nationwide support ahead of the next election.
To stimulate the economy, the new government will resume the subsidy program first launched by the military-backed government during the pandemic. Eligible Thai citizens will receive digital cash subsidies (exact amount yet to be determined), used to pay for 50% of the price of goods and services; for those submitting tax returns, the government's co-payment ratio will be raised to 60%.
Efforts to lower living costs will also include reducing electricity prices from January next year and helping consumers burdened with high household debt.
Siri Phong said the government will assist agricultural, business, and individual debt restructuring, write off bad loans for borrowers with debts under 1 million baht (approximately 130,000 ringgit), and help “good borrowers” access low-interest credit.
Anutin's policy statement will also touch on the Thai-Cambodian border issue. Siri Phong stated that Thailand will not lift border restrictions until Cambodia withdraws weapons and troops to pre-conflict positions.
Meanwhile, the government will offer tax incentives to encourage companies with supply chains in Cambodia to relocate to Thailand, and may provide new jobs for approximately forty thousand Myanmar refugees temporarily residing in Thai camps after fleeing civil war. The newly added workforce could replace about twenty thousand Cambodian workers who have left.