Thailand to distribute cash in lieu of digital handout

Thailand’s Prime Minister Paetongtarn Shinawatra announced on Tuesday that a portion of the government’s 450 billion baht “digital wallet” handout will be given in cash, marking a shift in the popular policy.

The original digital wallet scheme involved transferring 10,000 baht ($292) in credit to 50 million Thais via a smartphone app, with the requirement that the amount be spent locally within six months.

However, it remains unclear how much of the budget will now be allocated as cash.

The changes to the policy come two weeks after Paetongtarn, 38, was appointed by parliament as Thailand’s youngest prime minister, following the removal of her predecessor, Srettha Thavisin, the policy’s strongest proponent, by a court decision.

A new government is expected to be formed by mid-September, with a cabinet list already prepared but not yet publicly disclosed.

The digital wallet handout was a key promise of the ruling Pheu Thai Party during the elections, aimed at boosting Thailand’s sluggish economy, which grew by only 2.3 per cent in the second quarter of this year.

The central bank forecasts economic growth of 2.6 per cent for 2024, following a 1.9 per cent expansion in 2023.

Attribution: Reuters

Subediting: M. S. Salama