Thailand kicks off first phase of digital wallet scheme

The government on Wednesday launched the first phase of its flagship US$14 billion stimulus handout scheme, which will eventually see an estimated 45 million people receive 10,000 baht each, saying it would spark economic activity.
The initial phase will see 10,000 baht distributed in cash to 14.5 million welfare cardholders and disabled people and is expected to be complete by the end of the month.
“Cash will be put into the hands of Thais and create a tornado of spending,” Prime Minister Paetongtarn Shinawatra said at an event to mark the programme’s start.
The “digital wallet” scheme was initially structured to distribute the funds through a smartphone application, with the money to be spent in local communities within six months.
The original plan proposed by the Pheu Thai Party as the centrepiece of its economic stimulus policy called for a budget of 450 billion baht to distribute 10,000 baht per head — all of it in the form of digital money — to 45 million recipients.
“There will be more stimulus measures, and we will move forward with the digital wallet policy,” said Ms Paetongtarn, daughter of former premier Thaksin Shinawatra.
The scheme has been criticised by economists, including two former Bank of Thailand (BoT) governors, as fiscally irresponsible. The government rejects that but has struggled to find sources of funding.
Southeast Asia’s second-largest economy is expected to grow 2.6% this year after an expansion of 1.9%, behind regional peers.