BANGKOK – Thailand’s ambitious plan to stimulate its economy through a $19 billion handout program encountered significant hurdles on its first day. The scheme, which aims to distribute 10,000 baht (S$376) to most Thai citizens, saw the registration system crash as millions attempted to sign up on July 31.
By early afternoon, 10.5 million people had applied, but the overwhelming demand caused technical issues, preventing many others from accessing the registration portal. Numerous applicants reported not receiving the necessary text message passcodes to complete their registration.
The Thai government has high hopes for the “digital wallet” initiative, designed to invigorate an economy burdened by high household debt and sluggish spending. However, the scheme has faced delays due to uncertainties surrounding funding sources.
Critics, including prominent economists and former central bank governors, have expressed concerns that the program is short-sighted and fiscally irresponsible. The government has dismissed these criticisms, asserting the program’s potential benefits.
Prime Minister Srettha Thavisin, a strong proponent of the initiative, acknowledged the initial challenges. “It’s normal to have problems on the first day, but we are doing our best,” he said. To support the digital wallet, the Lower House approved an additional 122 billion baht for the 2024 fiscal year on July 31. The plan still requires approval from the Senate and royal endorsement.
Set to launch in two months, the program will transfer 10,000 baht of credit to users via a smartphone application, with the stipulation that it must be spent within their local communities over six months. The scheme aims to include millions of retailers, from large shopping centers and supermarket chains to small noodle vendors and family-run convenience stores.
The Finance Ministry projects a 2.7% economic growth for 2024, driven by tourism and exports, while the government anticipates the handout program could boost growth by 1.2 to 1.8 percentage points in 2025.
Prime Minister Srettha emphasized the policy’s goal of stimulating economic activity in regional areas, reducing the concentration of economic benefits in urban centers. According to the World Bank, about half of Thailand’s population resides in urban areas.
Out of the 50 million eligible citizens, the government expects 45 million to participate. Those earning more than 840,000 baht annually or with over 500,000 baht in their bank accounts are not eligible for the handout.