Thailand expects digital wallet handout scheme to boost economy

25/7/2024 5:51

        The Thai government is banking on a digital wallet handout scheme to boost the Southeast Asian country's sluggish economy due to low incomes and high household debts, a senior official said on Wednesday.
        The handout of 10,000 baht (278 U.S. dollars) per head to 50 million eligible Thai citizens through a digital wallet is a crucial short-term stimulus measure, aiming to revive purchasing power and boost overall confidence in the economy alongside the government's efforts to tackle underlying structural issues, Finance Minister Pichai Chunhavajira told a news briefing.
        The ruling Pheu Thai Party's flagship policy is expected to cost about 450 billion baht (12.5 billion dollars), down from 500 billion baht (13.9 billion dollars) planned earlier, as officials project a take-up rate of the handout at less than 90 percent.
        The scheme, originally scheduled to be launched in early 2024, has delayed for financing challenges.
        The Finance Ministry said the handout registration will begin in August, with the expenditure planned for the fourth quarter of 2024. Beneficiaries are required to spend digital wallet credits in their neighborhood within a six-month period.