Thai Prime Minister Anutin stated on the 5th that the Thai cabinet has approved an emergency decree drafted by the Ministry of Finance, authorizing the ministry to borrow up to 400 billion baht (about 48.505 billion ringgit) to address the energy crisis caused by the Middle East conflict and to promote the nation's energy transition.
Speaking to the media after the cabinet meeting, he said that the conflict in the Middle East has had a severe impact on energy prices and global economic activity. The crisis began with energy prices and has gradually spread to food prices, comprehensively raising the cost of living for Thai citizens. Therefore, the government must take timely action and respond by issuing an emergency decree.
According to the draft decree released by the Thai Prime Minister's Office, the borrowing will be used to help people and businesses affected by the energy crisis, as well as to promote Thailand's transition from fossil fuels to renewable and alternative energy sources.
Ratchada, spokesperson for the Thai Prime Minister's Office, stated that the draft decree is scheduled to be submitted to parliament on the 14th.
Thai Deputy Prime Minister and Finance Minister Ainit said that the borrowing will not cause public debt to exceed the statutory ceiling of 70% of GDP, and that all funds will be raised domestically.
Due to factors such as the Middle East conflict, Thailand's Ministry of Finance recently lowered the country's 2026 economic growth forecast to 1.6%, noticeably lower than last year's 2.4% economic growth rate.