Thailand Launches First Phase of $14 Billion “Digital Wallet” Stimulus Initiative, Reports Reuters

BANGKOK (Reuters) – On Wednesday, the Thai government initiated the first phase of its major $14 billion stimulus handout program, which aims to provide 10,000 baht to an estimated 45 million people, with the intention of boosting economic activity.

In this initial phase, 14.5 million welfare card holders and individuals with disabilities will receive the 10,000 baht in cash, and the initiative is expected to be completed by the end of the month.

"Cash will be put into the hands of Thais and create a tornado of spending," stated Prime Minister Paetongtarn Shinawatra at the program’s launch event.

Originally, the digital wallet scheme was designed to distribute funds via a smartphone application, with an emphasis on spending within local communities over a six-month period.

"There will be additional stimulus measures, and we will continue with the digital wallet policy," Paetongtarn added.

The program has faced criticism from economists, including two former central bank governors, who label it as fiscally irresponsible. The government contests this claim but has encountered difficulties in identifying funding sources.

Thailand, the second-largest economy in Southeast Asia, is projected to grow by 2.6% this year, following a 1.9% expansion, lagging behind its regional counterparts.