Thailand's prime minister announced on Monday that eligible businesses and individuals can start registering from August for the Digital Wallet program, a controversial initiative aimed at revitalizing the country's lagging economy. The ambitious plan, introduced in April, will provide 10,000 baht (about $275) in digital money to 50 million citizens to spend at local businesses.
The registration process is set to commence on August 1, with the prime minister emphasizing the importance of a smooth implementation of the program. The government views the 'Digital Wallet' as a key economic stimulus measure, with expectations that it will lead to a significant boost in gross domestic product growth by 1.2 to 1.6 percentage points.
Despite the government's optimism, economists have raised concerns about the program's effectiveness in promoting sustainable economic growth compared to other strategies. The financing of the initiative has also faced challenges, initially relying on the state Bank for Agriculture and Agricultural Cooperatives for funding before shifting to the 2024 and 2025 fiscal budgets.
Deputy Minister of Finance revealed that the estimated cost of the program has decreased from 500 billion baht to 450 billion baht, making it financially feasible within the allocated budgets. The program will exclude individuals with a history of fraud in past schemes, as well as certain goods that are yet to be determined.
The Commerce Ministry will oversee the exclusions, which are expected to be finalized and announced next week. The Digital Wallet program aims to target lower-income Thais, limiting eligibility to those with annual incomes below 840,000 baht and savings not exceeding 500,000 baht.
Thailand's economy has been struggling in recent years, with the World Bank projecting a modest GDP growth of 2.4% for 2024. The government's Digital Wallet initiative represents a significant effort to stimulate economic activity and support local businesses during these challenging times.
