BANGKOK: Thailand’s Cabinet on Tuesday (Oct 7) approved a consumption stimulus programme worth 44 billion baht (US$1.36 billion), a government spokesperson said, as the new government tries to boost a sluggish economy.
The “co-payment” scheme will subsidise up to 60 per cent of the costs of certain food and consumer goods for qualified Thai citizens.
The scheme is one of the stimulus measures aimed at boosting Southeast Asia’s second-largest economy, which has been hit by US tariffs, high household debt, weak consumption, and a strong currency.
Finance Minister Ekniti Nitithanprapas said last week that the scheme was expected to boost economic growth by up to 0.4 percentage points.
He said the co-payment plan and other measures would lift fourth-quarter economic growth to more than 1 per cent, up from the previously expected 0.3 per cent.
The economy is expected to grow between 1.8 per cent and 2.2 per cent this year, according to a leading joint business group, down from last year’s expansion of 2.5 per cent, which lagged regional peers.
