Thai Cabinet approves 44 billion baht stimulus programme to boost growth

South-east Asia’s second-largest economy has been hit by US tariffs, high household debt, weak consumption, and a strong currency

Thailand’s Cabinet on Tuesday (Oct 7) approved a consumption stimulus programme worth 44 billion baht (S$1.7 billion), a government spokesperson said, as the new administration tries to revive the country’s sluggish economy.

South-east Asia’s second-largest economy has been hit by US tariffs, high household debt, weak consumption, and a strong currency.

GDP growth is expected to dwindle to between 1.8 per cent and 2.2 per cent this year, according to a leading joint business group, down from the 2024 rate of 2.5 per cent, which was already lower than its regional peers.

The “co-payment” scheme is one of a number of stimulus measures now underway, and will subsidise up to 60 per cent of the costs of certain food and consumer goods for qualified Thai citizens, said spokesperson Siripong Angkasakulkiat.

Finance Minister Ekniti Nitithanprapas said last week that the scheme was expected to boost economic growth by up to 0.4 percentage point.

The minister said that the co-payment plan and other measures was expected to lift fourth-quarter economic growth to more than 1 per cent, up from the previously expected 0.3 per cent.

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Ahead of the Tuesday announcement, Thailand’s benchmark index rose 1.2 per cent to its highest level since September. REUTERS