Thailand's Digital Wallet Scheme

By Kitiphong Thaichareon and Orathai Sriring

BANGKOK (Reuters) – The second phase of Thailand's "digital wallet" handout scheme will be launched in January, distributing 40 billion baht ($1.16 billion) among 4 million people to boost consumption, officials said on Tuesday.

The government's flagship $14 billion stimulus program to give 10,000 baht ($289) each to about 45 million people was launched in late September, with approximately a third of the payments already made.

The government had faced delays in the rollout, hampering efforts to jumpstart an economy that expanded just 1.9% last year.

The second tranche of payments will target people over 60 who need support first, Finance Minister Pichai Chunhavajira said. "We think this group is in need… and we can do it immediately," he told reporters.

Cash will be transferred by late January, before the Lunar New Year, Deputy Finance Minister Julapun Amornvivat said.

Officials were speaking after a government meeting on Tuesday about stimulus plans and debt relief measures.

Pichai stated that these measures would apply to borrowers with debts that were up to a year overdue, worth about 1.2 trillion to 1.3 trillion baht. The measures will include a suspension of interest and reduced principal payments for three years, he noted.

The government is also planning housing support for low-income earners, Pichai added.

Earlier on Tuesday, Prime Minister Paetongtarn Shinawatra indicated that the economy was showing good signs for expansion, with growth of 3% annually in the third quarter and a projected 2.6% for the full year.

The economy has the potential to grow more than forecast as private investment can be accelerated and support measures will be considered, she said.

Southeast Asia's second-largest economy's 3% annual growth in the September quarter was the fastest pace in two years and beat analysts' expectations.

However, officials and analysts faced increased challenges to maintaining the momentum next year.

Deputy Finance Minister Paopoom Rojanasakul on Tuesday stated that the third-quarter GDP data showed very good growth. "We have a duty to maintain the momentum of growth into the fourth quarter," he said.

Growth is expected to accelerate to 4.3% annually in the final quarter of 2024, aided by government stimulus measures, he said, and should be higher in 2025.