File photo for reference only

 

Amid plans to borrow 500 billion baht to boost Thailand's economy facing a US tariff crisis, former finance minister Thirachai Phuvanatnaranubala has urged caution, citing potential pitfalls in the government's strategy. As reported by Naewna newspaper, Thirachai cautioned against overselling the notion of "turning a crisis into an opportunity" without considering the long-term implications for Thai citizens.

 

Thirachai highlights that the borrowing aligns with the International Monetary Fund’s gloomy GDP forecast, reducing expectations for 2024 and 2025. The proposed borrowing would further inflate public debt, already at 10.69 trillion baht, equating to a per capita debt burden of 160,000 baht.

 

In his statement, Thirachai outlined five critical areas of concern:

 

 

 

1. Temporary Consumption Boost: He warned that distributing cash to spur consumption might temporarily lift GDP figures but won't sustain economic growth or income needed to repay the debt, given the underwhelming impact of previous cash handout projects.
2. Prudent Budget Utilisation: The government should prioritise using budgetary funds, cutting unnecessary or non-urgent expenditures, before resorting to borrowing.
3. Monetary Strategy Discussions: A dialogue between the Finance Ministry and Bank of Thailand is necessary, focusing on easing monetary policies, boosting financial competition, serious debt restructuring, and reducing interest margins.
4. Reassessment of Cash Handout Scheme: Thirachai suggests cancelling the third phase of the 10,000-baht cash handout due to global uncertainties, proposing that fiscal resources be conserved for emergency situations.
5. Economic Restructuring for Future Growth: Proposals include enhancing education, AI adoption, skill development, and fostering regional trade collaborations to increase economic potential.

 

Thirachai's critique underscores concerns that government policies might inadvertently benefit politically connected capitalists rather than the broader populace. As Thailand navigates the dual pressures of international trade dynamics and domestic economic hurdles, the call is for vigilant public oversight of governmental fiscal actions.

 

  Adapted by ASEAN Now from The Thaiger 2025-04-29

 

 

With so much uncertainty in the World , I don't think this is the best

time to be taking on loans , especially as it seems they want to give

it away under the 10,000 Baht scheme ,it's just going to increase

inflation .

 

regards worgeordie 

12 minutes ago, snoop1130 said:

Amid plans to borrow 500 billion baht to boost Thailand's economy facing a US tariff crisis, former finance minister Thirachai Phuvanatnaranubala has urged caution, citing potential pitfalls in the government's strategy.

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

2 minutes ago, BangkokReady said:

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

Are you supposing the the 100 billion is going to go in someone's pocket 

 

regards Worgeordie

2 minutes ago, worgeordie said:

Are you supposing the the 100 billion is going to go in someone's pocket 

 

regards Worgeordie

 

That's my conservative estimate.

Borrowing to spend short-term is very unproductive. A better idea would be to create a stable environment for farang to stay here long term. 

 

I know 3 friends in Thailand that have left recently b/c of visa issues. All spent 30-50k per month -- boosting the economy -- but because they were under-50 and could not get retirement visas they had a hard time staying. 

 

Since the average monthly Thai income is about 15,000 baht, I think that all farangs spending that amount or more are creating jobs.

 

 

3 hours ago, snoop1130 said:

Reassessment of Cash Handout Scheme: Thirachai suggests cancelling the third phase of the 10,000-baht cash handout due to global uncertainties, proposing that fiscal resources be conserved for emergency situations the next election.

 

3 hours ago, snoop1130 said:

Thirachai's critique underscores concerns that government policies might inadvertently benefit politically connected capitalists rather than the broader populace. As Thailand navigates the dual pressures of international trade dynamics and domestic economic hurdles, the call is for vigilant public oversight of governmental fiscal actions.

Thirachai is right . But if it makes the THB weaker , go for it.

21 minutes ago, FlorC said:

Thirachai is right . But if it makes the THB weaker , go for it.

 

It will not make the baht weaker in any form, because your hero in the US is crashing the dollar

3 hours ago, BangkokReady said:

 

Hey, come on now!  I'm sure the 400 billion baht is going to make a big difference to the economy...  🤔

 

I cut confirm but I swear read or watched a video once where it was claimed that about 200bn baht floods into phuket every year

 

Best to finish the trade talks wit USA first and see the outcome then.

15 hours ago, snoop1130 said:

File photo for reference only

 

Amid plans to borrow 500 billion baht to boost Thailand's economy facing a US tariff crisis, former finance minister Thirachai Phuvanatnaranubala has urged caution, citing potential pitfalls in the government's strategy. As reported by Naewna newspaper, Thirachai cautioned against overselling the notion of "turning a crisis into an opportunity" without considering the long-term implications for Thai citizens.

 

Thirachai highlights that the borrowing aligns with the International Monetary Fund’s gloomy GDP forecast, reducing expectations for 2024 and 2025. The proposed borrowing would further inflate public debt, already at 10.69 trillion baht, equating to a per capita debt burden of 160,000 baht.

 

In his statement, Thirachai outlined five critical areas of concern:

 

 

 

1. Temporary Consumption Boost: He warned that distributing cash to spur consumption might temporarily lift GDP figures but won't sustain economic growth or income needed to repay the debt, given the underwhelming impact of previous cash handout projects.
2. Prudent Budget Utilisation: The government should prioritise using budgetary funds, cutting unnecessary or non-urgent expenditures, before resorting to borrowing.
3. Monetary Strategy Discussions: A dialogue between the Finance Ministry and Bank of Thailand is necessary, focusing on easing monetary policies, boosting financial competition, serious debt restructuring, and reducing interest margins.
4. Reassessment of Cash Handout Scheme: Thirachai suggests cancelling the third phase of the 10,000-baht cash handout due to global uncertainties, proposing that fiscal resources be conserved for emergency situations.
5. Economic Restructuring for Future Growth: Proposals include enhancing education, AI adoption, skill development, and fostering regional trade collaborations to increase economic potential.

 

Thirachai's critique underscores concerns that government policies might inadvertently benefit politically connected capitalists rather than the broader populace. As Thailand navigates the dual pressures of international trade dynamics and domestic economic hurdles, the call is for vigilant public oversight of governmental fiscal actions.

 

  Adapted by ASEAN Now from The Thaiger 2025-04-29

 

 

Don't sit in the cave but go outside and look for new trading partners. 

However, the EU might not be amused to see human rights vanishing in Thailand and might connect this Uighur incident with new contracts.

So at the end you might stick with Big Brother.

Take a wild guess at WHO they'd be borrowing that money from.

China.

Because THAT is what China does. Lend money to poor countries with corrupt leaders so those leaders can use the money to buy Chinese weapons (like jets or submarines) and hire Chinese companies for mega-projects like high-speed rail lines, "land bridges", condos and casino projects.

Basically exactly what China has done in Cambodia. Myanmar. Laos. Sri Lanka. Djibouti.

And is trying to do in other countries in the South Pacific, Indian Ocean and on the West Coast of Africa.

Use their "Belt and Road" Initiative to loan those countries money for projects they can't afford and put them so far in debt to China that they have to do whatever China tells them to.

Look at Cambodia. China built a new airport outside of Phonm Penh and another near Siem Reap. The Chinese companies that built them have 55 year leases to operate (and profit) from them, after which what little is left of them will be handed over to Cambodia.

They also leased nearly 20% of Cambodia's ENTIRE coastline - on a 99 year lease.
Then built a self-contained "resort" with it's own power, water and waste treatment facilities, hotels, restaurants, offices and "casinos.

And to bring "tourists" there, they built another "airport" nearby - with runways far longer than needed by any commercial passenger or cargo jet - but perfect for fully loaded Chinese bombers to land/take-off from.
With the "resort" actually being the support base for that air base.

Which is only an hour's drive from Cambodia's Ream Naval Base.

Which China made them sign a "dual use agreement" to allow Chinese Warships to use the base despite that being a violation of Cambodia's Constitution.

And China told Cambodia to demolish 2 new "Command and Control buildings the Americans had built for Cambodia barely 5 years earlier.

And then Cambodia had to dredge the port and modify their piers to handle the larger Chinese warships.

Because THAT is what happens when you "borrow" so much from China that you can't afford to even pretend you're going to pay it back.

And lol - after Cambodia signed the "secret" dual use agreement with China, Hun Sen pretended to give 300 brand new military trucks to the Army and Police as though HE had bought them.

When in fact they had been GIVEN to Cambodia by China as a part of the "secret" deal - which China then publicly announced.

Imagine what could happen if Thailand was being run by a family of Chinese-friendly politicians !

Who have already been trying to change Thai laws and regulations to appease the Chinese, while negotiating to buy submarines from them, "co-operating" on a high-speed rail system to connect China and Thailand and discussing a Chinese proposal to build a "land bridge" across Southern Thailand.

And now are talking about "borrowing" 500 BILLION baht - from "someone".
Not really hard to figure out who would even be willing to lend them that much and no, it's not the IMF (International Monetary Fund) or World Bank.

Won't be long before Thailand is no different than Cambodia, Laos and Myanmar at this rate.

Outrageous

All These Hundreds Of Billions

And What To Show For It (?)

 

A Specialty Of ... (?)

 

The Larger The Number, The Larger The 'Commissions' (?)

The Easier To 'Redirect' (?)

Borrowing, the Thai national sport

1 hour ago, Kerryd said:

Imagine what could happen if Thailand was being run by a family of Chinese-friendly politicians !

 

But they are are allready!

I am surprised no one has  suggested that history is repeating itself. The rice pledging scheme. The same misguided mentality.

Isn't it a little late to do a forecast for 2024?

17 hours ago, CallumWK said:

 

It will not make the baht weaker in any form, because your hero in the US is crashing the dollar

Good that he crashes the dollar.

I only care about euros and THB.