BANGKOK, Thailand: Thailand’s planned $14 billion cash giveaway, a key economic stimulus measure, is likely to be abandoned by the incoming government led by Paetongtan Shinawatra, daughter of former Prime Minister Thaksin Shinawatra. The cash handout was a flagship campaign promise of the ruling Pheu Thai party, intended to stimulate the economy by giving 10,000 baht (approximately S$376) to every Thai citizen aged 16 and above.
However, reports indicate that Thaksin himself has advised his daughter and the Pheu Thai party to drop the plan, citing concerns over its funding and potential inflationary effects. The plan has faced opposition from the central bank and some lawmakers, further complicating its implementation.
The abandonment of the cash giveaway comes amid a challenging economic environment in Thailand. Despite an influx of tourists, the country’s GDP growth remains sluggish, with the economy expected to have grown just 2.1% in the second quarter of 2024. Thailand’s economy has struggled in recent years, hampered by high household debt and a weakening manufacturing sector.
The government is now expected to consider alternative, more targeted stimulus measures to support the economy. How the public will react to the cancellation of the cash handout remains uncertain, as nearly 30 million citizens had already registered for the benefit.
