(Bangkok, 8th) In response to the impact of US tariff policies on the global economy, the Thai government has announced a temporary halt to the third phase of the digital wallet subsidy program originally scheduled for mid-month implementation. Prime Minister Prayut Chan-o-cha stated that the government needs to reassess its subsidy strategy to ensure that economic stimulus measures are maximally effective.
Prayut, after the cabinet meeting on Tuesday (May 6), pointed out that the government must listen to the opinions of various related departments before deciding how to use the fiscal funds. Consequently, the proposal for the issuance of the third phase of the digital wallet, originally scheduled for submission to the cabinet that day, has been postponed.
According to the 'Nation' newspaper, Prayut instructed all government units on Wednesday (May 7) to propose alternative plans to address the potential impact of US tariff policies, especially in the fields of trade and investment.
When pressed by the media on whether the third phase distribution plan would be canceled, Prayut did not provide a clear response, only stating that “the plan has not changed.”
However, the 'Bangkok Post' quoted anonymous sources saying the government is indeed considering canceling this phase of the subsidy because the previous two rounds failed to effectively stimulate the economy.
The digital wallet program is a major campaign promise made by the For Thai Party during the elections. Since successfully taking office, despite facing controversy and criticism, the party has been actively promoting the plan. In the first phase, at the end of last year, the government disbursed 145 billion baht (approximately 5.7 billion SGD) to 14.5 million national welfare cardholders and disabled individuals; earlier this year, 30 billion baht was provided as a subsidy to 3 million elderly individuals.
The third phase was originally set to launch in mid-year, targeting 2.7 million citizens aged 16 to 20, with each receiving 10,000 baht for consumption expenditure.
Sources reveal that the government currently has a budget of 157 billion baht available for use, but given the increased uncertainty in economic prospects, this fund may be redirected to improve the national water resource management system or to support more effective economic aid programs, such as helping the unemployed.
Impacted by US tariff increases and a slowdown in the global economy, the Joint Standing Committee on Commerce, Industry and Banking of Thailand has lowered the country's economic growth forecast for this year from 2.4%-2.9% to 2.0%-2.2%. According to Reuters, Thailand's export growth this year is also expected to be below forecasts, only between 0.3% and 0.9%, significantly lower than the original estimate of 1.5% to 2.5%.
Supant Mongkolsuthree, Chairman of the Federation of Thai Industries, stated that if the US maintains the current tariff policies, Thailand's economic growth in 2025 might be only 0.7%, and the cumulative loss in export revenue over the next decade could reach up to 1.4 trillion baht.
As one of the Southeast Asian countries most severely affected by US tariffs, if Thailand fails to reach a tax reduction agreement with the US before the July tariff exemption deadline, it may face tariffs as high as 36%.
Prayut, after the cabinet meeting on Tuesday (May 6), pointed out that the government must listen to the opinions of various related departments before deciding how to use the fiscal funds. Consequently, the proposal for the issuance of the third phase of the digital wallet, originally scheduled for submission to the cabinet that day, has been postponed.
According to the 'Nation' newspaper, Prayut instructed all government units on Wednesday (May 7) to propose alternative plans to address the potential impact of US tariff policies, especially in the fields of trade and investment.
When pressed by the media on whether the third phase distribution plan would be canceled, Prayut did not provide a clear response, only stating that “the plan has not changed.”
However, the 'Bangkok Post' quoted anonymous sources saying the government is indeed considering canceling this phase of the subsidy because the previous two rounds failed to effectively stimulate the economy.
The digital wallet program is a major campaign promise made by the For Thai Party during the elections. Since successfully taking office, despite facing controversy and criticism, the party has been actively promoting the plan. In the first phase, at the end of last year, the government disbursed 145 billion baht (approximately 5.7 billion SGD) to 14.5 million national welfare cardholders and disabled individuals; earlier this year, 30 billion baht was provided as a subsidy to 3 million elderly individuals.
The third phase was originally set to launch in mid-year, targeting 2.7 million citizens aged 16 to 20, with each receiving 10,000 baht for consumption expenditure.
Sources reveal that the government currently has a budget of 157 billion baht available for use, but given the increased uncertainty in economic prospects, this fund may be redirected to improve the national water resource management system or to support more effective economic aid programs, such as helping the unemployed.
Impacted by US tariff increases and a slowdown in the global economy, the Joint Standing Committee on Commerce, Industry and Banking of Thailand has lowered the country's economic growth forecast for this year from 2.4%-2.9% to 2.0%-2.2%. According to Reuters, Thailand's export growth this year is also expected to be below forecasts, only between 0.3% and 0.9%, significantly lower than the original estimate of 1.5% to 2.5%.
Supant Mongkolsuthree, Chairman of the Federation of Thai Industries, stated that if the US maintains the current tariff policies, Thailand's economic growth in 2025 might be only 0.7%, and the cumulative loss in export revenue over the next decade could reach up to 1.4 trillion baht.
As one of the Southeast Asian countries most severely affected by US tariffs, if Thailand fails to reach a tax reduction agreement with the US before the July tariff exemption deadline, it may face tariffs as high as 36%.