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Home World News Asia

Thai PM Paetongtarn pledges new populist measures to boost support, economy

December 12, 2024
in Asia
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BANGKOK – Thai Prime Minister Paetongtarn Shinawatra pledged new populist measures on Dec 12 in an attempt to shore up support for her government and boost an economy held back by high household debt, tight lending and tepid consumption.

In a televised address on the government’s performance during her first three months in office, Ms Paetongtarn said her administration would provide soft loans for community businesses, funds for villages, cheap housing for low-income workers in Bangkok, energy price cuts and a flat rate for urban rail travel.

She added that the government would formalise and regulate underground businesses that accounted for an estimated 49 per cent of Thailand’s gross domestic product, a move aimed at protecting consumers and generating government income.

“In 2025, it will be the year of tangible opportunities and hopes. The government will create tangible results to make dreams come true. Policies that are tangible,” she said.

Ms Paetongtarn, the 38-year-old daughter of billionaire former premier Thaksin Shinawatra, was elected by Parliament in August to become Thailand’s youngest prime minister, just days after a court’s shock removal of party ally Srettha Thavisin.

She is widely expected to continue the populist legacy of her influential father, whose political parties have won multiple elections in the past quarter-century with pro-poor platforms from handouts and broad subsidies to rural loans and cheap healthcare.

But her government faces many economic challenges, including an 89.6 per cent household debt-to-GDP ratio, amounting to 16.3 trillion baht (S$648 billion), among the highest in Asia.

She said South-east Asia’s second-largest economy would grow in excess of 3 per cent in the final quarter of 2024, and the government would roll out the third phase of its signature multibillion baht handout scheme in 2025.

About 14.5 million people have so far received payments of 10,000 baht to be spent in their communities. Another four million will receive payments by January, with an estimated 26.5 million more expected to benefit. REUTERS

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