Thai PM Pledges Populist Policies to Boost Economy

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Picture courtesy: Thai Rath

 

Thai Prime Minister Paetongtarn Shinawatra has unveiled a series of populist initiatives aimed at invigorating the Thai economy and bolstering governmental support. In a televised address, she outlined strategies focusing on soft loans, affordable housing, and energy cost reductions to address key economic challenges like high household debt and subdued consumer spending.

 

Poised to stimulate the economy, Paetongtarn's measures will include targeted financial assistance for community enterprises and village funds, as well as a uniform rate for urban rail commutes. She has also proposed formalising Thailand's vast informal economy, which reportedly contributes around 49% to the country's gross domestic product, to better protect consumers and generate revenue for the state.

 

"2025 will be a year of realised opportunities and aspirations," the PM declared, underscoring her administration's commitment to delivering tangible results. This approach aims to echo the populist strategies of her father, Thaksin Shinawatra, a former premier renowned for pro-poor, grassroots-focused policies that have historically resonated with Thai voters.

Paetongtarn's ascent as Thailand's youngest prime minister earlier this year followed her predecessor's unexpected removal. With a lineage tied to the influential Shinawatra political dynasty, her tenure is expected to perpetuate the populist legacy, renowned for policies offering direct financial aid and subsidies across various sectors.

 

However, significant hurdles await her government. With household debt soaring to about 89.6% of GDP—totalling approximately 16.3 trillion Thai Baht—it ranks among the highest in Asia, presenting a substantial barrier to sustainable economic growth.

 

Despite these challenges, the prime minister is optimistic about Thailand's economic prospects. She predicts a growth rate exceeding 3% in the last quarter of 2024. Integral to this outlook is the continuation of a significant 450 billion Thai Baht stimulus scheme set to enter its third phase next year.

 

Thus far, approximately 14.5 million citizens have benefited from initial disbursements of 10,000 Thai Baht each, intended to stimulate local economies. Another 4 million recipients are expected by January, with plans extending to over 26.5 million individuals in total, reported Bangkok Post.

 

Paetongtarn's ambitious vision signals a determined effort to revitalise Thailand's economy through these populist measures, intertwining immediate relief with longer-term economic reforms. As she seeks to steer the nation towards prosperity, the coming months may well test the stronger resolve of both her leadership and the policies she champions.

 

-- 2024-12-12