TDRI urges govt to halt digital wallet handouts, focus on economy

Somchai Jitsuchon, TDRI’s research director for inclusive development, said on Thursday that digital wallet handouts for teenagers aged 16-20 would have a weaker economic impact than the first phase, which targeted state welfare cardholders and vulnerable groups.

"If the government truly wants to boost the economy, it should abandon short-term stimulus measures and focus on solving structural economic problems," he said.

He suggested that the government should allow teenagers to use funds for acquiring knowledge, upskilling and reskilling—skills that would better align them with labor market demands. 

While the short-term impact may be limited, he argued that long-term benefits would be significant, unlocking individuals' potential and strengthening the Thai economy.

Somchai Jitsuchon, TDRI’s research director for inclusive development

Somchai warned that Thailand’s financial sector is facing a decline in funds, which could lead to missed opportunities in human development, climate change mitigation and the transition to a digital economy if the budget is not wisely managed.

Investment in digital infrastructure, he said, would enhance Thailand’s competitiveness. He emphasised the need for budget allocation to support such initiatives.

"The government should invest in digital technology, ensuring free internet access nationwide. This would significantly boost productivity, as people could develop skills and generate income," he said.

"I believe there are hidden talents across the country who lack opportunities. The government should allocate funds to help them realise their potential."

Somchai urged the government to prepare for internal and external risks to the Thai economy, including trade wars, the Russia-Ukraine conflict, rising household debt and declining production capacity.

He projected that Thailand’s public debt could reach 70% of GDP within a few years, potentially lowering the country’s credit rating.

"The economy will remain sluggish, and over the next four years, the outlook will be similar unless structural issues are addressed," he concluded.