Thailand’s newly appointed Prime Minister, Srettha Thavisin, has announced a series of measures aimed at revitalizing the nation’s economy, which has been significantly affected by the COVID-19 pandemic. In his first address to Parliament, Srettha, who transitioned to politics following a career in real estate and is a member of the populist Pheu Thai Party, emphasized the urgency of economic recovery.
Srettha described the Thai economy as being in a critical state, likening it to “a sick person.” He highlighted the slow recovery of tourism and spending, which are pivotal to the country’s economy, expressing concerns about the potential for economic recession. To counter this, the government plans to implement a cash distribution program, promising to give 10,000 baht ($280) to every Thai citizen aged 16 and over. This initiative, estimated to cost around 560 billion baht ($15.8 billion), is expected to be rolled out by the first quarter of the next year. The program aims to stimulate job creation, economic activity, and generate government revenue.
The prime minister addressed the issue of rising public and household debt, which has seen significant increases to more than 60% and 90% of the country’s GDP, respectively, in 2023. The government also plans to take steps to mitigate escalating energy costs and intends to enhance the tourism sector by waiving visa fees for visitors from certain countries and improving airport facilities to increase flight arrivals.
Long-term objectives set out by Srettha include promoting international trade, supporting startups, investing in transportation infrastructure, advancing agricultural production, empowering local governance, and improving land ownership access. Moreover, he announced plans to amend the current military-installed constitution through a public participatory process.
Addressing military reforms, Srettha promised a “co-development” approach with the army, including ending mandatory conscription, reducing the number of generals, and ensuring transparent procurement procedures in the Ministry of Defence.
This development follows the Pheu Thai Party’s alliance with several pro-military parties, securing support from the conservative Senate to establish a government. This alliance marked a shift from its earlier election campaign promises and has led to mixed reactions among the Thai public. Recent polling indicates skepticism among Thais regarding the new government’s ability to implement its proposed reforms, particularly concerning military conscription and constitutional changes.
Stay informed with supply chain news on The Supply Chain Report. Free tools for international trade are at ADAMftd.com.
#ThailandEconomy #SretthaThavisin #PheuThaiParty #EconomicRecovery #TourismRevitalization #CashDistributionProgram #DebtReduction #EnergyCostMitigation #VisaWaiver #InfrastructureInvestment #MilitaryReforms #ThailandConstitution #PublicParticipation #StartupsSupport #AgriculturalAdvancement #LocalGovernance #TransportationDevelopment #ConscriptionReform #ThaiGovernment #ThailandPolitics #COVID19Impact #EconomicStimulation #Thailand2024
