Govt approves 5-point economic stimulus plan

The government’s economic stimulus policy committee has approved a plan to boost five aspects of the country’s economy in both the short- and long-terms, a Government House source said on Thursday.

Chaired by Prime Minister Paetongtarn Shinawatra, the committee acknowledged that the plan aims to increase people’s revenue, reduce cost of living, solve debt problems and boost investments for the remainder of 2024 and all of 2025.

The government also aims to use these stimulus measures as a foundation for long-term economic promotion by developing new growth engines, infrastructure, and new economic zones to integrate modern technology with the manufacturing, agricultural and service sectors to support sustainable economic growth, the source said.

The five components of the plan are as follows:

1. Property sector

Short-term measures: Offering loans for hotel operators to fix and upgrade their buildings, which will promote investment and employment, starting from December this year. In 2025, loans will be granted to the general public looking to buy or improve their homes as well as furnish them.

Long-term measures: Building affordable housing projects on state-owned lands as well as allowing low-income earners to rent these lands for residential purposes in the long term.

2. Investment and infrastructure development

Short-term measures: Capping electric train fee at a flat rate of 20 baht, which is expected to cover all lines by September 2025. Increasing investment promotion through the Board of Investment (BOI) and investment projects in the Eastern Economic Corridor (EEC), along with improvements to investment promotion criteria, which are expected to begin within 2025.

Long-term measures: Development of infrastructure for international freight transport and the integration of transportation systems in key economic zones across the country. The Land Bridge project, expected to start in 2029, will improve the country’s logistics system, positioning Thailand as a trade and logistics hub. The government will also promote investment in low-cost clean energy to strengthen Thailand’s energy stability.

3. Agricultural sector

Short-term measures: A cash subsidy for farmers of 1,000 baht per rai to alleviate their debt burdens and help prepare for the next cultivation cycle, to be implemented in January 2025. The government would also address the issue of low agricultural product prices and how to increase farmers' incomes.

Long-term measures: Developing agricultural zones to promote farming practices that are suited to the land, water resources, and climate conditions of each area, expected to start in 2025. The plan also includes the adoption of technology to enhance agricultural productivity and improve crop prices, while ensuring food security to meet global market demands.

4. Tourism and service sector

Short-term measures: The “New Year gift” measures will help stimulate travel and spending during the New Year season, including holiday extension, co-payment shopping schemes, and discounts at hotels and attractions in selected provinces.

Long-term measures: Developing man-made tourist attractions, such as amusement parks and entertainment complexes. There will also be efforts to bring concerts, festivals, and world-class sporting events to Thailand, aimed at attracting foreign travellers and digital nomads.

5. Private consumption

Short-term measures: Stimulating domestic spending and improving people’s well-being via cash handouts to vulnerable groups, holders of state welfare cards, elders and other groups. The government would also offer several loans and debt restructuring programmes to tackle non-performing loans (NPLs) in housing and automotive purchases, as well as among small and medium enterprises (SMEs). These programmes are expected to start in 2025.

On Thursday, Paetongtarn attended the Forbes Global CEO Conference in Bangkok, and assured investors that the government will continue to promote ease of doing business, and that its policies would ensure sustainable economic growth in the long-term.

"Investors' greatest concern is stability, business growth, and the ease of doing business, which the government must make possible,” the premier said in her keynote speech.

“The government believes that Thailand's politics has become stable and that no unforeseen changes will happen. The policies that we set will continue, and Thai people will break free from the middle-income trap,” she said.