The Thai government has decided to provide subsidies to teenagers, giving approximately 430,000 won per person to boost the economy. According to the Bangkok Post and Reuters, the Thai Economic Stimulus Committee approved a plan on the 10th (local time) to provide 10,000 baht (about 430,000 won) to 2.7 million citizens aged 16 to 20.
Deputy Prime Minister and Finance Minister Pichai Chunhawachira said that after cabinet approval, the subsidies will be distributed through a ‘digital wallet’ in the second quarter. With digital currency, citizens can use it like cash through smartphones.
Deputy Prime Minister Pichai explained that using the digital wallet system allows the government to track the usage of subsidies, aiding future policy-making.
The Thai government began distributing subsidies last year to stimulate the economy. Last September, approximately 14.5 million vulnerable individuals received 10,000 baht each in cash, and in January this year, 3 million elderly people received the same amount.
The ruling Pheu Thai Party made the distribution of 10,000 baht per person a key promise in the last general election. However, the opposition criticized it as a populist policy, and the economic community and the Bank of Thailand expressed concerns about fiscal burdens and inflation, opposing the move.
Despite the controversy, the government is pressing ahead with the subsidy distribution. Deputy Prime Minister Pichai stated that the distributed subsidies would spread nationwide, easing household debt burdens, and believes the policy is worthwhile.
Thailand’s economy has been subdued due to the impact of the COVID-19 pandemic, with a slump in tourism and exports. Last year’s GDP growth rate was 2.5%, falling short of expectations and at half the level of Indonesia’s 5.0% growth, the largest economy in Southeast Asia.
Concerns are also rising that the economy might worsen due to the trade war initiated by US President Trump. Thailand recorded a trade surplus of 35.4 billion dollars (about 51 trillion won) with the United States last year, but the ongoing tariff conflicts pose a risk.
Thai Prime Minister Paetongtarn Shinawatra expressed on social media that although the Thai economy is predicted to grow by 3% this year, he believes the government can surpass this figure.