Thailand's Youngest PM Rolls Out $13.4 Billion Handout to Ignite Economy

Thai Prime Minister Paetongtarn Shinawatra outlined her policy agenda with plans to give away 450 billion baht to boost the economy. Her administration, newly sworn in, continues her predecessor's populist policies. Challenges include debt restructuring and stimulating growth, aiming to improve economic confidence and household debt management.

Thai Prime Minister Paetongtarn Shinawatra on Thursday announced a 450 billion baht ($13.4 billion) handout plan to parliament, aimed at reinvigorating Southeast Asia's second-largest economy. Recently sworn in after parliament elected her as the youngest premier, Shinawatra's agenda mirrors her predecessor Srettha Thavisin's populist policies.

Her policies focus on debt restructuring and legalizing casinos to attract investment and tourism. She emphasized the need for urgent actions to address structural economic issues, noting that without fiscal measures, economic growth might not exceed 3% per year.

A key initiative is a 'digital wallet' handout of 10,000 baht ($300) to 50 million people, to be partially distributed in cash. Finance Minister Pichai Chunhavajira highlighted the urgency of economic stimulus to manage household debt, currently at 90.8% of GDP. The first handout is scheduled for late September, targeting 14.2 million recipients with a 140 billion baht distribution.

Consumer confidence hit a 13-month low in August, complicating the government's challenge to lift economic sentiment. Shinawatra, Thailand's second female prime minister and a member of the influential Shinawatra family, called for cooperation from opposition lawmakers to prioritize national interests and pursue 'creative politics.'

(With inputs from agencies.)