Thai govt scraps $390 handout, redirects budget to new economic stimulus plan

BANGKOK - The Thai government has scrapped its plan to distribute 10,000 baht (S$390) via the digital wallet programme – one of its flagship policies – and will instead reallocate more than 150 billion baht towards a new economic stimulus plan.

This decision comes amid escalating global economic uncertainties caused by the trade war and the recent imposition of US tariff measures, which have affected the global economy as well as Thailand’s exports and manufacturing sectors.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the Economic Stimulus Policy Committee, chaired by Prime Minister Paetongtarn Shinawatra, will meet at the Government House on May 19.

The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the US’ reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years.

The most affected sectors include exporters, supply chain businesses and manufacturers facing an influx of cheap foreign goods.

“Despite the challenges, the government remains committed to achieving GDP (gross domestic product) growth of over 3 per cent in 2025,” said Mr Pichai. “Additional stimulus measures will be introduced, with a focus on tourism and real estate, to prevent potential risks in these sectors.”

A source from the Government House revealed that the economic uncertainty expected in the second half of 2025 has prompted a complete overhaul of the stimulus plan.

The government will now repurpose 157 billion baht from the central emergency and contingency budget to fund more targeted and timely economic initiatives.

The new plan will be structured as a package focused on addressing the impact of US tariff hikes. It will prioritise production restructuring and liquidity support for affected businesses.

As a result, the government has decided to cancel the

10,000-baht digital wallet handout

for 2.7 million young people aged 16 to 20 – previously budgeted at 27 billion baht – and redirect the funds to more suitable projects.

The decision will be formalised by the Economic Stimulus Policy Committee, using input from two key agencies – the National Economic and Social Development Council and the Bank of Thailand – both of which opposed the third phase of the handout.

Their recommendations will help the government explain to the public why the scheme was cancelled, especially as it seeks to address a broader economic crisis.

PM Paetongtarn commented on the reconsideration of phase three of the digital wallet programme, saying new global economic factors, such as the US tariff policy, require further consultation before a final decision is made.

When asked whether cancelling the project might disappoint the public, Ms Paetongtarn said the government is determined to find the most effective way to stimulate the economy and must consider all perspectives.

Regarding a possible revision of the scheme to resemble the previous “Let’s Go Halves” co-payment programme, Ms Paetongtarn said various economic stimulus policies are being explored and that all age groups will be included in the upcoming measures, not just a specific segment of the population as originally planned.

“This is a global economic crisis. We need to use both financial resources and policy tools to stimulate the entire economy, not just focus on one age group,” Ms Paetongtarn said. THE NATION/ASIA NEWS NETWORK