Thailand plans $737 million stimulus spending and will compensate border conflict casualties

BANGKOK – Thailand will spend 18.5 billion baht (S$737 million) on stimulus measures to support the economy as it braces itself for the impact of US tariffs, and will compensate families of those who died in July’s border conflict, officials said on Aug 5.

The stimulus measures approved by Cabinet are aimed at enhancing economic competitiveness and supporting student loans, Deputy Finance Minister Julapun Amornvivat told reporters.

The government still has about 25 billion baht of funds to use to mitigate the impact of US tariffs and for broader relief efforts, Mr Julapun said.

The US last week set a 19 per cent tariff on imported goods from Thailand, lower than the 36 per cent rate announced earlier in 2025 and more aligned with other countries in the region.

Mr Julapun said the Cabinet gave the government approval to prepare a joint statement on tariffs and trade with the United States, but discussions were ongoing and there was no set signing date.

On Aug 5, the University of the Thai Chamber of Commerce said it expected the economy to grow 1.7 per cent in 2025. That is below both the Finance Ministry’s revised forecast of 2.2 per cent growth in 2025 and an actual growth of 2.5% in 2024.

The Cabinet also approved a 10 million baht (S$398,000) payment to the families of government officials who died in the July conflict with Cambodia, while those injured will receive up to 1 million baht, government spokesperson Jirayu Huangsap told a briefing.

Families of Thai civilians who died during the conflict will each receive a payment of 8 million baht, he said, while the injured would receive up to 800,000 baht. REUTERS