Digital wallet scheme and minimum wage hike under fire

[snoop1130]

 

The Thai government of Prime Minister Srettha Thavisin has faced significant challenges since coming to power seven weeks ago, with various commitments made during their campaign now under scrutiny. A crucial task includes the repatriation of Thai citizens affected by the Middle East conflict and the ongoing Israel-Hamas unrest.

 

The Thai government’s promise to hike the daily minimum wage to 400 baht this year and 600 baht within four years may not be enough to entice Thais working abroad to return, considering wages in their host countries are higher.

 

Consequently, Thailand’s reliance on labour from neighbouring countries is expected to continue.

 

The administration’s planned 10,000-baht digital wallet scheme has raised questions about its funding source, with economists highlighting potential long-term risks based on certain financing forms.

 

Amonthep Chawla, chief economist at CIMB Thai Bank (CIMBT), expressed concerns about the lack of details regarding the digital handout, including funding sources, the digital unit type, and the digital wallet’s functioning. Therefore, CIMBT cannot determine whether the scheme will be implemented as planned.

 

The administration has announced that the handout is set to launch early next year, but Amonthep suggested that the Thai government should educate the public and merchants about the scheme ahead of its February roll-out.

 

He also remarked on the necessity of convincing businesses to register for the scheme and comply with the tax system. Should the scheme launch in February next year, CIMBT anticipates it could contribute to a 4% economic growth next year. However, the bank remains sceptical about sustaining this growth rate in 2025 and 2026.

 

As for the proposed increase in the minimum wage, the bank expects the Thai government to implement this policy on time, as it does not require a significant fiscal budget, but this depends on tripartite discussions.

 

By Alex Morgan

Caption: Photo: Bangkok Post

 

Full story: The Thaiger 2023-10-23

 

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[keith101]

since coming to power seven weeks ago, with various commitments made during their campaign now under scrutiny.

 

They didn't come to power they  stole power

[ukrules]

2 minutes ago, keith101 said:

since coming to power seven weeks ago, with various commitments made during their campaign now under scrutiny.

 

They didn't come to power they  stole power

Yeah, and good luck getting any of these changed through parliament when it comes to voting 🤣

 

They all hate each other, I reckon the first vote will tear it all apart and the PM will be out on his arse.

[hotchilli]

13 hours ago, snoop1130 said:

The Thai government’s promise to hike the daily minimum wage to 400 baht this year and 600 baht within four years may not be enough to entice Thais working abroad to return, considering wages in their host countries are higher.

 

Consequently, Thailand’s reliance on labour from neighbouring countries is expected to continue.

 

Thais work overseas for 30,000-50,000 per month, migrants are paid 10,000 a month in Thailand.

Time Thailand sorted out it's labour wage disparity.

[kingstonkid]

3 hours ago, hotchilli said:

Thais work overseas for 30,000-50,000 per month, migrants are paid 10,000 a month in Thailand.

Time Thailand sorted out it's labour wage disparity.

The challenge to that of course, is that the fact that wages and costs are lower here means that we retired folks can afford to live here.

 

The other side is that the cost of living for a lot of the people out of the country is higher.  They just due to their life here are better equipped to live a simpler life in the new country.

 

No one in Thailand is going to pay labourers 30-40k for construction.  Imagine the cost of the buildings if they did.

 

Also, consider that Thais are being hired to do jobs in other countries because the people working there do not want to do those jobs for those wages.

 

It is an interesting set of circumstances.

 

Imagine if hotels paid Thais 20-30k a month to clean rooms in hotels.  Would Thai women want to do it?

 

 

Edited October 24, 2023 by kingstonkid

[shackleton]

I am getting bad vibes about this Digital payment ever  happening 

As much as I would like to see the ordinary Thai people get this money 💰 

Seems to be those in the know not as keen 🤔

[Eric Loh]

22 minutes ago, shackleton said:

I am getting bad vibes about this Digital payment ever  happening 

As much as I would like to see the ordinary Thai people get this money 💰 

Seems to be those in the know not as keen 🤔

Government is keen but will depend on how they can conjure up the funding. It has to be funded by new money like borrowing or excess liquidity like a big tourist upturn. Perhaps the recipents of the payment will be reduced to a more manageable number. There will always be critics. Thailand economy has stagnated for many years with 2-3% growth per year. Thailand need bold policies to grow by at least 5% for the next few years to improve the standard of living. Doing nothing to stimulate growth is not helpful to the economy and to the citizens. 

[pixelaoffy]

Immigrant workers getting 350 baht for 12 hour days cooking and cleaning in open air no aircon..Guess what ..Thais are not interested in these jobs.

[pixelaoffy]

8 hours ago, Eric Loh said:

Government is keen but will depend on how they can conjure up the funding. It has to be funded by new money like borrowing or excess liquidity like a big tourist upturn. Perhaps the recipents of the payment will be reduced to a more manageable number. There will always be critics. Thailand economy has stagnated for many years with 2-3% growth per year. Thailand need bold policies to grow by at least 5% for the next few years to improve the standard of living. Doing nothing to stimulate growth is not helpful to the economy and to the citizens. 

5 months the people voted for big change and they get more of the same...Not surprised because something Thailand isnt ...

a democracy