10,000-baht digital wallet handout expected to boost manufacturing sector
The Office of Industrial Economics expects the scheme to boost Thailand’s industrial sector by 0.1% and the overall economy by 0.3%, as the first phase of funds distribution kicks off
The 10,000 baht digital wallet handout scheme should give the industrial sector a 0.1% boost, the Office of Industrial Economics (OIE) said on Friday.
This announcement follows the first phase, in which funds are being distributed to 14.55 million state welfare cardholders and people with disabilities. The rollout kicked off on Wednesday and will continue until Monday.
OIE director-general Warawan Chitaroon said she expects the digital wallet handout to stimulate the economy by 0.3%, which includes a 0.1% boost in the industrial sector.
“This scheme will immediately benefit the manufacturers of consumer products,” she said, adding that OIE hopes the handout will continue driving economic growth.
Warawan went on to say that the Thai Manufacturing Production Index (MPI) is currently under pressure, standing at 95.08 in August this year, down 1.9% year on year. The OIE has also revised its forecast for the MPI, predicting a 1% contraction compared to an earlier projection of 1% growth.
The OIE has also adjusted its forecast for the country’s GDP, expecting it to fluctuate between 0.5% contraction or growth, rather than the previously estimated growth of 0.5 to 1.5%, she said.
Warawan attributed these negative forecasts to surging household debts, which stand at 90.8% of the GDP, prompting financial institutions to tighten loan approvals, particularly for auto loans. She added that business debts amount to 87.6% of the GDP, while high production and fuel costs, as well as flooding, pose further risks to the MPI.
The OIE is also monitoring policy interest rates, the baht’s exchange rate and the upcoming US elections.
Warawan added that the office is closely observing flood damage impacts on the industrial sector, including the manufacturing of autos in Chiang Rai, wooden furniture in Phayao and agricultural goods processing in Sukhothai. She said if post-flood rehabilitation is delayed, it could affect the manufacturing sector’s purchasing power.
However, she added, some businesses, such as those producing cleaning supplies, have experienced positive outcomes from the increased demand caused by flooding.
