In a twist of events, the Thailand government has set back the launch of the 10,000-baht digital wallet scheme, citing the need to establish a secure system, announced Deputy Finance Minister Julapun Amornvivat. Previously, the government had planned to begin disbursing these digital funds on February 1st, but it seems the timeline will shift to the end of the first quarter.
Julapun Amornvivat, who also holds a membership in the Pheu Thai party and represents Chiang Rai, said, ‘While we are aware that people anticipate this scheme, we must not compromise security for swiftness.’ These remarks came on the back of an instruction by the Prime Minister Srettha Thavisin for the preparations of the digital cash handout to commence from February 1st.
The initiative to deliver 10,000 baht digitally to Thai individuals aged 16 and above forms the heart of the Pheu Thai Party’s strategy to jump-start the economy. The execution of this strategy is to roll out through a new, yet-to-be-developed ‘super app’, according to the government. The goal is to bathe the economy in a consumption boost, which Prime Minister Srettha Thavisin believes could push growth to a cap of 5% for the upcoming year.
However, the plan has not been well received by some quarters. Former governors of the Bank of Thailand, along with an array of economists, are among those declaring the scheme a gamble in a period of public debt stretching to its limits.
Former senator Rosana Rositrakul recently lodged a petition with the State Audit Office (SAO), calling for a review and suspension of the scheme based on its potentially detrimental impact. Her appeal points out six deficiencies revolving around the scheme, including its violation of the Currency Act, potential to add unnecessary financial strains to the country, violation of State Fiscal Discipline act and others.
Meanwhile, a parliamentary committee has been engaging with various stakeholders, voicing their opinions on the planned handout, including an official from the Bank of Thailand who indicated that consumption in the private sector is already on an upward trend and there seems to be a recovery in the jobs market. It’s suggested that the policy may not be feasible.
The Chairman of the House Economic Development Committee, and Move Forward Party MP, Sithipol Wibulthanakul, expressed his desire for genuine consideration over the scheme’s advantages and disadvantages, the origins of the funds required for its implementation, and the potential economic impact, both short and long-term.
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