Thai Prime Minister Unveils New Populist Measures to Boost Economy
Government’s Plan to Address Household Debt and Boost Consumption
Thai Prime Minister Paetongtarn Shinawatra has pledged new populist measures in an attempt to shore up support for her government and boost an economy held back by high household debt, tight lending, and tepid consumption.
Measures to Support Low-Income Workers and Communities
In a televised address, Paetongtarn announced that her administration would provide soft loans for community businesses, funds for villages, cheap housing for low-income workers in Bangkok, energy price cuts, and a flat rate for urban rail travel. These measures are aimed at supporting low-income workers and communities, which have been disproportionately affected by the economic challenges faced by the country.
Regulation of Underground Businesses
The government also plans to formalise and regulate underground businesses that account for an estimated 49% of Thailand’s gross domestic product. This move is aimed at protecting consumers and generating government income. "In 2025, it will be the year of tangible opportunities and hopes. The government will create tangible results to make dreams come true. Policies that are tangible," Paetongtarn said.
Populist Legacy
Paetongtarn, the 38-year-old daughter of billionaire former premier Thaksin Shinawatra, was elected by parliament in August to become Thailand’s youngest prime minister. She is widely expected to continue the populist legacy of her influential father, whose political parties have won multiple elections in the past quarter-century with pro-poor platforms from handouts and broad subsidies to rural loans and cheap healthcare.
Economic Challenges
However, her government faces many economic challenges, including an 89.6% household debt-to-GDP ratio, amounting to 16.3 trillion baht ($482 billion), among the highest in Asia. The government also needs to address tight lending and tepid consumption, which have been weighing on the economy.
Growth Projections and Handout Scheme
Paetongtarn said that Southeast Asia’s second-largest economy would grow in excess of 3% in the final quarter of 2024, and the government would roll out the third phase of its signature $14 billion handout scheme next year. About 14.5 million people have so far received payments of 10,000 baht ($300) to be spent in their communities. Another 4 million will receive payments by January, with an estimated 26.5 million more expected to benefit.
Conclusion
In conclusion, Paetongtarn’s new populist measures aim to address the economic challenges faced by Thailand and support low-income workers and communities. The government’s plan to formalise and regulate underground businesses and roll out the third phase of its handout scheme are expected to boost consumption and growth. While the economic challenges faced by the country are significant, Paetongtarn’s government is committed to creating tangible results and making dreams come true for the people of Thailand.
FAQs
Q: What are the new populist measures announced by Paetongtarn?
A: The measures include soft loans for community businesses, funds for villages, cheap housing for low-income workers in Bangkok, energy price cuts, and a flat rate for urban rail travel.
Q: Why is the government formalising and regulating underground businesses?
A: The move is aimed at protecting consumers and generating government income.
Q: How much will the government handout scheme cost?
A: The scheme is valued at $14 billion.
Q: How many people have received payments under the handout scheme so far?
A: About 14.5 million people have received payments of 10,000 baht ($300) to be spent in their communities.
Q: When will the third phase of the handout scheme be rolled out?
A: The government plans to roll out the third phase of the handout scheme next year.