Thailand's new PM outlines policies to parliament as consumer mood drops

Thailand's new PM outlines policies to parliament as consumer mood drops

By Chayut Setboonsarng and Orathai Sriring

Thai Prime Minister Paetongtarn Shinawatra on Thursday outlined her government's policy agenda to parliament, headlined by plans to give away 450 billion baht ($13.4 billion) in handouts to jumpstart Southeast Asia's second-largest economy.

Political newcomer Paetongtarn's cabinet was sworn in this month, after parliament elected her Thailand's youngest premier following the shock removal of predecessor Srettha Thavisin by a court decision.

The polices largely continue ally Srettha's agenda and that of their populist Pheu Thai party, including debt restructuring and legalising casinos to draw in investment and more tourists.

Paetongtarn, 38, told lawmakers her government was facing challenges, including structural economic problems, and said the it would act with urgency to stimulate growth.

"If there are no financial and fiscal measures to support economic growth, it is expected that the country's economic growth rate will not exceed 3% per year," she said.

A cornerstone of those measures is the government's signature 'digital wallet' handout of 10,000 baht ($300) to 50 million people, some of which will be given in cash.

Finance Minister Pichai Chunhavajira said economic stimulus would help ease household debt, which remains stubbornly high at 16.4 trillion baht ($486.50 billion), or 90.8% of gross domestic product as of March.

"We can't bring this number down immediately, that's the reality, until the economy is stimulated and there is confidence," he told the house.

The first payment in the handout programme will be made on Sept. 25 and 26, he said, totalling about 140 billion baht ($4.15 billion) and distributed to 14.2 million people.

The government insists the policy is necessary to energise the economy, which the central bank expects to grow 2.6% this year, up from 1.9% in 2023 but far adrift of most regional peers.

Consumer confidence dropped for a sixth straight month to a 13-month low in August, a survey showed on Thursday.

Paetongtarn is Thailand's second female prime minister and the fourth member of her family to hold the top job.

Among those was her father, the billionaire Thaksin Shinawatra, Thailand's most influential and divisive politician over the past two decades.

In her final remarks in parliament, Paetongtarn called for cooperation from opposition lawmakers to take the country forward.

"We should come together and pursue creative politics ... we have to put the needs of nation first."