Although it is uncertain whether the Pheu Thai Party will achieve its objective of securing a prime ministerial candidate in this week’s bicameral vote, the party has announced that it will implement a policy of distributing 10,000 baht in digital currency as soon as it forms a government.
This is consistent with the urgent support for economic stimulus from the business community.
Sanan Angubolkul, Chairman of the Chamber of Commerce and Board of Trade of Thailand, shared that the private sector has been closely following the progress in forming a new government over the past week and has observed a clearer direction.
With the Pheu Thai Party’s leading position in forming the government, it was able to gain the support of 9 coalition parties. Other political parties and senators are expected to provide additional support to ensure a sufficient and strong government that can move policies forward smoothly and consistently.
“We are confident that the country can have a new government by August or September, which is not too much of a delay. However, it should be as soon as possible, because the country is facing great challenges. The economy is in a recovery phase, investment remains under the ‘wait and see’, and there is a possible slowdown in the global economy, as well as external risks such as the war, which is affecting Thailand’s economy.”
Sanan stressed that the urgent task of the new government is to meet the immediate needs of the people through measures to boost the economy. This includes measures to boost the economy, reduce the cost of living for the people and mitigate the negative impact on the private sector, such as fuel costs, electricity charges and continued negative export conditions in the next 8-9 months.
If the new government, led by the Pheu Thai Party, successfully implements the 10,000-baht digital currency policy, called “Digital Wallet” to immediately boost the economy, the Chamber of Commerce believes this is possible, but stresses the need to carefully evaluate the economic value and scope of the policy.
Direct provision of funds to the group of people 16 years and older, which includes about 50 million people, would require a budget of about 500 billion baht if each person receives 10,000 baht. The Chamber estimates that such a direct injection of money to the people would lead to increased spending and a rapid economic recovery.
Each cash injection of 100-150 billion baht would increase GDP by an estimated 1 percent. Therefore, this policy could potentially boost the economy by about 2.5-3 percent and create a multiplier effect in the economic system for about 3-4 rounds.
However, there are concerns from various sides about the source of funding for this project and its potential budgetary impact. It must be clear where the funds will come from and how they will affect fiscal stability.
The Chamber of Commerce requests that policies be considered to support and encourage businesses to join the correct tax system, with a focus on medium and small businesses, as many are currently out of compliance. This would broaden the tax base and increase the country’s revenues in the long term.