Thai PM Srettha Thavisin Pitches $16 Billion Cash Handout To Revive Economy

All Thais aged 16 and above will receive 10,000 baht each that can be spent on specific goods and services in their neighborhood within a set period. The government will also soon cut energy prices and offer a debt moratorium to farmers and small businesses battling loan burden, Srettha said in a customary policy statement made in parliament Monday.
Neubauer Artists LLC
Getting your Trinity Audio player ready...

Thailand will dole out 560 billion baht ($16 billion) to its 55 million adults in the next six months to spur domestic demand and investment, with new Prime Minister Srettha Thavisin pitching the revival of a sluggish economy as his government’s top priority.

The so-called digital wallet plan “will act as a trigger that will once again wake up the country’s economy,” Srettha said, adding the handout will ensure even distribution of the money into all sectors of the economy.

The first working meeting of Srettha’s cabinet on Wednesday is likely to sign off on some of the measures outlined by the premier in parliament.

The digital wallet program — set to be rolled out within the first quarter — is the main pre-election promise of Srettha’s Pheu Thai Party and officials say the multiplier effect on the economy could be four times the handout and lift economic growth next year to as high as 5% from 2.8% projected for this year.

Srettha, a former property mogul who also doubles as the finance minister, faces the challenge of boosting growth amid declining demand for its goods from its top trading partner China, and less-than-expected earnings from foreign tourists. The 11-party coalition government also faces the prospect of a spurt in inflation as drought conditions threatens to slash harvests of crops such as rice and sugar.

The Thai financial markets, which had seen an exodus of foreign investors in the wake of the post-election turmoil, were largely neutral to the policy announcement. The benchmark stock index was down 0.5% by 11:26 a.m in Bangkok after opening higher, while the baht held its 0.4% gain against the US dollar.

Budget Focus

While Srettha’s policy statement marks the end of a government formation process and months-long political impasse that followed the May general election, the new leader now needs to quickly pass a budget for the fiscal year starting Oct. 1. He also needs to tackle household debt at 90% of gross domestic product and public debt at 61% of GDP.

The government intends to fund the digital wallet program via state budget and additional taxes from the program without resorting to fresh borrowing. But economists from Bank of America Securities and Nomura Holdings Inc. say the spending plans will widen fiscal deficit, limiting the country’s room to absorb future shocks.

The opposition Move Forward Party slammed the government for not spelling out details and setting deadlines for implementation of the newly announced initiatives. “If this policy statement is like a Global Positioning System, the nation will probably get lost,” said Sirikanya Tansakun, a deputy leader of the Move Forward.

The short-term priorities for Srettha’s administration will include boosting tourism revenue by easing visa processes and fee waivers for travelers from select countries. It also plans to hold a referendum for overhauling the nation’s constitution, he said.

Srettha Thavisin arrives at the Thai Parliament on Sept. 11. Photographer: Valeria Mongelli

Highlights of other priorities:

  • Working with the military to shift to a voluntary military service as well as reducing the roster of high-ranking officials and modernizing the arms procurement process
  • Setting up four new special economic zones to spread the benefits of economic development
  • Establishing a “Matching Fund” with the private sector to invest in start-ups
  • Accelerating free-trade agreements with the European Union, countries in the Middle East, Africa and South America and India
  • Easing rules for foreign labor and skilled-workers to meet rising demand
  • Taking steps to tackle the air pollution menace
  • Scrapping and improving outdated laws including lifting curbs on production of homegrown alcohol
You May Also Like
Read More

UAE Announces Petrol Price Increase For April 2024, Diesel Rates Fall

The United Arab Emirates has announced that fuel prices for April and will increase further leaving a rare expectative for the rest of the year if it will reach the OPEC on international fluctuations. While the prices of gasoline and diesel have fluctuated over the last 12 months, they are presently not as high as they were during the same period last year something the west is very dependent on the Arab countries.
Read More
Read More

NASDAQ Composite Running At 16.11 Points For Six Months, Markets Weigh Rising Yields And Upbeat Corporate Results

The Nasdaq Composite as the root of the United States corporations have been rallying for more than 6 months between 15.0, 15.5 to 16.11 points steady. Today, it parked at 16.11 on 0.10%, to 15,712.75. on market yield. Furthermore, an action record of $70 billion worth of ‘five-year’ in New York of U.S. Treasury ‘notes bonds’ on Wednesday helped push the ‘bond market’ yield higher weighting on equities with a 10 year bench mark of 4.6459%.
Read More
Read More

The Nasdaq Composite Hits 16,393.95 For Seven Consecutive Months Stable. It’s About To Turn? The Fed Fell Back

The Nasdaq Composite has been running at 16,393.95 for seven months now. Parked at 38.12 on 0.27%, equivalent to a high of 16,538.86 market yield. The Federal Reserve is generating propaganda with companies they owe in exchange of their wallet to sustain themselves in the market when that is not possibility. Then there is the economy, the Fed Chair without chance said quite clearly the treasury owe investors while government is running on zero and they aren’t afraid not paying added interests.
Read More
Read More

Why Gold Prices Are Hitting Record Highs

Gold markets are at all-time high rallying and looks over done and the mining industry blocked after crossing more than $2,300 per ounce on April 3 before dropping a little in the initial trading hours on Thursday. This would mean bad news for the world’s biggest gold consumers China and India – the world’s second and fifth biggest economies – which drive the global demand for the yellow metal.
Read More
Read More

Elon Musk To Meet Modi In India To Announce Tesla Investment Plans: Sources

The investment of $2 billion to $3 billion dollars will have an impact on multiple factories workers regenerating income and creating five times to seven times in an injection a year of an impact to the Indian economy. Generating $6 billion to $7 billion dollars a annually in production of labor in parts, assembly, batteries, amongst others being the biggest investment in the country when statistically lined analyzed. More than any other western company who has contributed to the Indian economy. For example, grounded operations operations rather than IT infrastructure clouds doesn’t satisfy labor needs and don’t revolve the economy.
Read More
Read More

B.C. First Nation Gets Nearly $16M Funding For Off-Grid Solar Farm

Nearly $16 million in federal and provincial funding is going toward the solar farm in Anahim Lake, home to the Ulkatcho First Nation, where power is currently diesel-generated. Infrastructure Canada says in a news release that the project will reduce the need for diesel generation in the remote community by about 64 per cent, equal to 1.1 million litres less of diesel a year.
Read More
Read More

Rise 1 Semiconductor Stock To 16% on ‘Soft Landing’ Upside

Valued at $66.1 billion by market cap, shares of NXP Semiconductors have surged 53.6% over the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 25.4% returns, and roughly on pace with the iShares Semiconductor ETF’s (SOXX) performance. The stock offers an annualized dividend of $4.06, which translates to a 1.56% dividend yield. Arya reiterated his “Buy” rating and target price of $300 for NXPI stock, which indicates that the shares could rally as much as 16% from current price levels.
Read More
Read More

Eastern Europe Is Richer Than Ever — And More Divided

Five out of eight nations have ditched their currencies for the euro and many have at least one dollar billionaire, with the Czech Republic leading the ranks. Buying goods is now a click away and oranges and bananas have turned from luxury foods to staples. Prague, Budapest, Warsaw and Vilnius all have higher per-capita income than the EU average, along with Bratislava.
Read More
Read More

Seeking Up To ~16% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy

Are the headwinds piling up? The Middle East war has appeared on the verge of expanding into a larger conflict, and an uptick in US inflation has put a ‘hold’ on expectations for a Fed rate cut this summer. This could be part of the normal cycling of the economy – except that there are some $52 billion worth of outstanding long positions on the S&P 500, and according to Citigroup’s Chris Montagu, 88% of those positions are currently in a loss.
Read More
Read More

Chancellor Jeremy Hunt To Hold Summit To Discuss London Stock Market On May 16 At Dorneywood

The Chancellor is set to hold a summit to attract companies to London’s stock market, it has been reported. Hunt has invited the bosses of some of Britain’s most prominent private technology firms to meet at his private residence. He said: “The Government is committed to ensuring that the UK remains the best place for companies to grow, and is already taking forward an ambitious programme of reforms to improve the competitiveness of the UK.” according to George V Magazine
Read More