Thailand is gearing up to give about 50 million citizens digital cash handouts that officials hope will boost the lagging economy.
Only eligible businesses and people can register for the controversial program, the Associated Press (AP) reported on July 15.
“The government announced in April the widely criticized ambitious plan, named the Digital Wallet, meant to give 10,000 baht (about $275) to 50 million citizens in digital money to spend at local businesses,” the outlet said, noting that Prime Minister Srettha Thavisin said registration will begin on August 1.
The AP article continued:
The “Digital Wallet” was a major campaign promise of the ruling Srettha’s Pheu Thai party ahead of last year’s general election. The government says that this scheme will cause an “economic tornado,” and Srettha has said the stimulus and subsequent consumption are expected to boost gross domestic product growth by 1.2 to 1.6 percentage points.
However, economists have criticized the program, calling it an ineffective way to contribute to sustainable economic growth compared to other measures.
According to the Tourism Authority of Thailand, the country recently announced updated visa measures to help its economy.
“These include 60-day visa exemption and Visa on Arrival (VOA) schemes, Destination Thailand Visa (DTV), and student visas, which takes effect from 15 July 2024,” the website reads.
According to analysts, Thailand is showing signs of the middle-income trap, “where a combination of low productivity and poor education leaves much of the workforce stuck in low-paid, low-skilled work,” Aljazeera reported in April.
While other Southeast Asian countries are recovering well from the Chinese coronavirus pandemic, Thailand is struggling. State economic planners said its economy grew a mere 1.9 percent in 2023.
The country’s economy took a significant hit during the pandemic because much of it relies on tourism, BBC News reported in November:
“Chinese tourists, in particular, made up one-quarter of Thailand’s 40 million foreign visitors in 2019. There was hope that 2023 would see tourist numbers bounce back to pre-Covid levels, but this has not been the case,” the outlet said.
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