Latest news with #EconomicStimulusPolicyCommittee
Business Times
3 days ago
- Business
- Business Times
Thai budget Bill, spending to move as planned
[BANGKOK] Thailand will push ahead with plans to stimulate the economy and pass the budget for next year as planned, Finance Minister Pichai Chunhavajira said, easing concerns that an ongoing political crisis could derail economic policy. The government is set to inject an additional 48 billion baht (S$1.87 billion) into the economy over the remaining three months of the current fiscal year, Pichai told Bloomberg News in an interview late Sunday (Jul 6). The US$115 billion budget Bill for the fiscal year beginning Oct 1 is on track to be passed by parliament by the end of August, he said. The finance chief's comments aim to reassure investors concerned about the government's economic agenda after Prime Minister Paetongtarn Shinawatra was suspended over alleged ethics violations tied to a border dispute with Cambodia. The departure of a key coalition partner has left the administration with a narrow parliamentary majority, raising concerns about its stability. 'The prime minister has been suspended but everything is still carrying on,' Pichai said. 'Our big economic stimulus plans are also still going ahead.' The minister also pointed to progress in trade talks with the US as proof the government remains functional. Pichai, who met with Trump administration officials last week, submitted a revised proposal late Sunday offering broader market access for US agricultural and industrial goods in hopes of securing a deal before the July 9 deadline and avoiding a 36% tariff. US Treasury Secretary Scott Bessent has indicated that some countries lacking an agreement by the 90-day deadline will be able to negotiate until the tariffs kick in on Aug 1. Obtaining a lower US tariff rate is considered crucial for shielding Thailand's trade-reliant economy from additional risks, especially as it grapples with the region's highest household debt and weak domestic consumption. The US was Thailand's largest export market last year, accounting for about 18% of the country's total shipments that left a trade surplus of about US$46 billion. Pichai said the Economic Stimulus Policy Committee will deliberate ways to accelerate public spending to support the economy. 'I'll have further discussions on how to disburse the stimulus. Some parts may be used to shield against impacts from US tariffs before the end of the year,' Pichai said. 'I'll assess the impact this week. The money has all been prepared.' BLOOMBERG
Barnama
24-06-2025
- Business
- Barnama
Thai Cabinet Approves Economic Stimulus Projects Worth 157 Bln Baht
BANGKOK, June 24 (Bernama) -- Thailand's Cabinet has approved a proposal for economic stimulus projects under the country's Economic Drive Plan, with a total budget of 157 billion baht. Finance Minister Pichai Chunhavajira stated that the projects, reviewed by the Economic Stimulus Policy Committee, comprise 481 initiatives, encompassing 8,939 sub-activities across 50 budget-receiving units, with a total allocation of 115.375 billion baht. 'These initiatives aim to achieve short-term economic stimulation with long-term benefits. In addition to fostering economic growth through job creation, infrastructure development will strengthen Thailand's competitive capacity amidst global economic volatility,' he said in a statement on Tuesday. bootstrap slideshow Pichai, who also serves as Deputy Prime Minister, stressed that these measures are designed to effectively stimulate short-term economic activity while laying a foundation for sustainable long-term growth through infrastructure investment, human capital development, and regulatory improvements. He said the committee will closely monitor the economic situation and adjust policies to remain prepared for uncertainties. 'The budget prioritises low-income provinces, with the Northeast receiving a larger share. Funds are distributed nationwide to provinces and districts, focusing on infrastructure development for medium- and long-term economic restructuring,' he added. Separately, Deputy Finance Minister Dr Paophum Rojanasakul announced the approval of a soft loan scheme totalling 15 billion baht to support small and medium-sized enterprises (SMEs) in the three southern border provinces. Dr Paophum noted that recent unrest in Yala, Pattani, and Narathiwat has adversely affected business confidence and investment in the region. 'To ensure continued support for entrepreneurs and to enable them to sustain their operations, the finance ministry has proposed extending and revising the criteria for financial assistance programmes in the three southern border provinces until the end of 2027,' he explained. Under the Southern Region Soft Loan Programme, the Government Savings Bank will provide low-interest loans totalling 15 billion baht to participating financial institutions, including commercial banks and specialised financial institutions. These institutions will then offer loans to entrepreneurs in the provinces of Yala, Pattani, Narathiwat, and four districts in Songkhla province – Thepha, Chana, Na Thawi, and Saba Yoi. 'Loans will be available at a low interest rate of 1.99% per year for working capital to enhance liquidity or for investments to expand operations, with a loan limit of up to 20 million baht per borrower,' he added.
Straits Times
16-05-2025
- Business
- Straits Times
Thai govt scraps $390 handout, redirects budget to new economic stimulus plan
Thailand's Finance Ministry will propose new measures to stimulate the economy. PHOTO: AFP BANGKOK - The Thai government has scrapped its plan to distribute 10,000 baht (S$390) via the digital wallet programme - one of its flagship policies - and will instead reallocate over 150 billion baht toward a new economic stimulus plan. This decision comes amid escalating global economic uncertainties caused by the trade war and the recent imposition of US tariff measures, which have affected the global economy as well as Thailand's exports and manufacturing sectors. Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the Economic Stimulus Policy Committee, chaired by the Prime Minister, will meet at the Government House on May 19. The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the US's reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years. The most affected sectors include exporters, supply chain businesses and manufacturers facing an influx of cheap foreign goods. 'Despite the challenges, the government remains committed to achieving GDP growth of over 3 per cent in 2025,' said Mr Pichai. 'Additional stimulus measures will be introduced, with a focus on tourism and real estate, to prevent potential risks in these sectors.' A source from the Government House revealed that the economic uncertainty expected in the second half of 2025 has prompted a complete overhaul of the stimulus plan. The Thai will now repurpose 157 billion baht from the central emergency and contingency budget to fund more targeted and timely economic initiatives. The new plan will be structured as a package focused on addressing the impact of US tariff hikes. It will prioritise production restructuring and liquidity support for affected businesses. As a result, the government has decided to cancel the 10,000-baht digital wallet handout for 2.7 million young people aged 16 to 20 - previously budgeted at 27 billion baht - and redirect the funds to more suitable projects. The decision will be formalised by the Economic Stimulus Policy Committee, using input from two key agencies - the National Economic and Social Development Council (NESDC) and the Bank of Thailand (BoT) - both of which opposed the third phase of the handout. Their recommendations will help the government explain to the public why the scheme was cancelled, especially as it seeks to address a broader economic crisis. Prime Minister Paetongtarn Shinawatra commented on the reconsideration of Phase 3 of the digital wallet programme, saying that new global economic factors, such as the US tariff policy, require further consultation before a final decision is made. When asked whether cancelling the project might disappoint the public, Ms Paetongtarn said the government is determined to find the most effective way to stimulate the economy and must consider all perspectives. Regarding a possible revision of the scheme to resemble the previous 'Let's Go Halves' co-payment programme, Ms Paetongtarn said various economic stimulus policies are being explored and that all age groups will be included in the upcoming measures, not just a specific segment of the population as originally planned. 'This is a global economic crisis. We need to use both financial resources and policy tools to stimulate the entire economy, not just focus on one age group,' Ms Paetongtarn said. THE NATION/ASIA NEWS NETWORK Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
16-05-2025
- Business
- The Star
Thai govt scraps 10,000-baht handout, redirects budget to new economic stimulus plan
BANGKOK: The government has scrapped its plan to distribute 10,000 baht via the digital wallet programme—one of its flagship policies—and will instead reallocate over 150 billion baht toward a new economic stimulus plan. This decision comes amid escalating global economic uncertainties caused by the trade war and the recent imposition of US tariff measures, which have affected the global economy as well as Thailand's exports and manufacturing sectors. Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the Economic Stimulus Policy Committee, chaired by the Prime Minister, will meet at Government House on May 19. The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the US's reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years. The most affected sectors include exporters, supply chain businesses, and manufacturers facing an influx of cheap foreign goods. 'Despite the challenges, the government remains committed to achieving GDP growth of over 3% in 2025,' said Pichai. 'Additional stimulus measures will be introduced, with a focus on tourism and real estate, to prevent potential risks in these sectors.' A source from Government House revealed that the economic uncertainty expected in the second half of 2025 has prompted a complete overhaul of the stimulus plan. The government will now repurpose 157 billion baht from the central emergency and contingency budget to fund more targeted and timely economic initiatives. The new plan will be structured as a package focused on addressing the impact of US tariff hikes. It will prioritise production restructuring and liquidity support for affected businesses. As a result, the government has decided to cancel the 10,000-baht digital wallet handout for 2.7 million young people aged 16–20—previously budgeted at 27 billion baht—and redirect the funds to more suitable projects. The decision will be formalized by the Economic Stimulus Policy Committee, using input from two key agencies—the National Economic and Social Development Council (NESDC) and the Bank of Thailand (BoT)—both of which opposed the third phase of the handout. Their recommendations will help the government explain to the public why the scheme was cancelled, especially as it seeks to address a broader economic crisis. Prime Minister Paetongtarn Shinawatra commented on the reconsideration of Phase 3 of the digital wallet programme, saying that new global economic factors, such as the US tariff policy, require further consultation before a final decision is made. When asked whether cancelling the project might disappoint the public, the Prime Minister said the government is determined to find the most effective way to stimulate the economy and must consider all perspectives. Regarding a possible revision of the scheme to resemble the previous 'Let's Go Halves' co-payment programme, the Prime Minister said various economic stimulus policies are being explored and that all age groups will be included in the upcoming measures—not just a specific segment of the population as originally planned. 'This is a global economic crisis. We need to use both financial resources and policy tools to stimulate the entire economy, not just focus on one age group,' the Prime Minister said. - The Nation/ANN
