Debt-structuring expected to feature in Paetongtarn’s economic push
PM will highlight key measures to lift the economy in her policy address to Parliament next week
The government will push for comprehensive debt restructuring, particularly home and car loans, to support both the formal and informal debtors, Prime Minister Paetongtarn Shinawatra is expected to tell Parliament when she presents her government's policies on September 12–13.
These policies will be implemented through state-owned specialised financial institutions, commercial banks, and asset management companies, according to a source.
The policy statement to Parliament will be followed by a Cabinet meeting on September 17, when various economic measures, particularly short-term economic stimulus, including the distribution of the digital wallet policy, would be considered.
According to a source, the economic section of Paetongtarn’s policy address to Parliament will emphasise that the government fully recognises the hardships faced by the people, including debt issues, income, cost of living, and social stability and safety. These are urgent problems requiring immediate action to create economic opportunities and equality by addressing debt, reducing expenses, increasing income, boosting the economy, and resolving social security issues.
Among other key urgent policies, the government will support, promote, and protect the interests of Thai entrepreneurs, especially small and medium-sized entrepreneurs from unfair competition with foreign competitors, particularly on online platforms, the source said. Additionally, the government will address the debt problems of SMEs through measures such as debt moratoriums and the establishment of a Matching Fund, a joint investment between the government and private sector.
The source said that the government would urgently implement measures to reduce energy and utility costs by restructuring energy prices and accelerating the revision of relevant laws and regulations. This also includes developing a Strategic Petroleum Reserve (SPR) to ensure national energy security, exploring additional energy sources, and negotiating the overlapping claims area with Cambodia to reduce energy costs. Additionally, the government will promote the development of the public mass transit system and implement a unified fare structure in Bangkok to support the “flat fare” policy.
The government will generate new revenue by bringing the informal and underground economies into the tax system, estimated to account for more than 50% of GDP. This revenue will be allocated toward education, healthcare, utilities, and basic expenses for citizens, according to the source.
The government will stimulate the economy, build confidence, and encourage spending, while also alleviating living costs and increasing employment opportunities, focusing on vulnerable groups first. The digital wallet project will be introduced to lay the foundation for a digital economy. development, as well as employment.
The source said the government would also aim to modernise traditional agriculture under the concept of “market-driven innovation to increase income”, utilising agricultural technology, such as precision agriculture, and food technology to enhance careers in farming, fisheries, and livestock.
Tourism will continue to be in focus, with the restructuring of the country’s visa system to facilitate applications for international event participants, such as MICE, and digital nomads, who together contributed 1.892 trillion baht to the economy in 2023. New tourism industries will be promoted, and man-made destinations will be developed. The government will bring international concerts, festivals, and sporting events to Thailand, the source said.
