Revisiting Pheu Thai’s pledge to deliver an economic miracle with 10 policies
With the election-winning Move Forward Party passing the baton to its main coalition partner, the Pheu Thai Party, to form the next government, all eyes are now on its prime ministerial candidate Srettha Thavisin, a former business executive.
Srettha, who heads the Pheu Thai economic team, has vowed to fix the country’s economic woes. Here are the 10 policies he and Pheu Thai pledged to implement in their campaign ahead of the May 14 election.
1. The 10,000 baht digital wallet scheme: Pheu Thai’s biggest economic stimulus policy will require a budget of 560 billion baht. Every Thai citizen aged 16 and up will receive 10,000 baht in a digital wallet. The money can be spent at local businesses within 4 kilometres of their registered address. The money must be spent within six months and only on items necessary for daily life. Spending on online shopping, drugs or gambling is prohibited.
Pheu Thai has said the scheme can be funded by tax and state revenues and that it will help Thailand become a digital economy and a regional fintech hub.
2. Increasing the minimum wage: Pheu Thai has pledged to raise the daily minimum wage to 600 baht by 2027 and the monthly minimum salary for university graduates to at least 25,000 baht. It said this can be done by expanding the country’s gross domestic product (GDP) by increasing productivity and managing inflation.
3. Reducing economic inequality: Pheu Thai said its One Family One Soft Power project will reduce inequality by increasing the monthly income of all families to over 20,000 baht. Those who earn less will receive government subsidies.
4. Rescuing 1.4 million people from loan sharks: Pheu Thai said this can be accomplished by establishing more micro-financing providers (personal loans of no more than 100,000 baht). Increasing the number of micro-lenders will create competition that will reduce interest rates, Pheu Thai has argued.
5. Reducing the debt burden of SMEs: Small and medium-sized enterprises are burdened by an estimated 200 billion baht in debt. Pheu Thai has said that raising the limit on the amount of the loans they can take out will increase their liquidity.
6. Tax breaks for investment in modern industries: Incentives for investment in digital technology, biotechnology, agricultural technology, and medical technology will expand the economy and create high-paying jobs, Pheu Thai has said.
7. Creating new business zones: Pheu Thai has pledged to create new business zones in Bangkok, Chiang Mai, Khon Kaen, and Songkhla (Hat Yai) to harness the resources of airports and universities in these areas. The government will equip the zones with infrastructure to facilitate transport and support start-ups and SMEs, which will also reduce overcrowding in large cities.
8. Tripling farmers’ income by 2027: Pheu Thai has pledged to raise the average income of farmers to 30,000 baht per rai per year. It said this can be done through price guarantees and by using technology to increase output and reduce costs.
9. Pension lottery scheme: Spending on lottery tickets will allow some people to win and others will have the money they spend on tickets returned in the form of pensions when they turn 60. Pheu Thai estimates that the scheme will require about 800 million baht, but said the benefits will far outweigh the cost.
10. Twenty-baht trains: The management systems of all electric trains in Bangkok and surrounding provinces will be overhauled so that a common ticketing system can be used for 20 baht per trip. The city’s train system will also be expanded to connect with a high-speed train network countrywide. Pheu Thai estimates that this will require a 40 billion baht initial investment and 8 billion baht per year to maintain.
