Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
File photo of a street in Thailand. (Photo: AFP/Christophe Archambault) Read more at https://www.channelnewsasia.com/news/business/thailand-earmarks-us-10-billion-for-urgent-economic-stimulus-11816156

Finance

Thailand earmarks $10 billion for ‘urgent economic stimulus’

File photo of a street in Thailand. (Photo: AFP/Christophe Archambault)

The once-vibrant Southeast Asian economy sagged after a 2014 coup and growth slowed to 2.8 percent in the first quarter of this year, the first time it dipped under 3 percent since mid-2015, according to the World Bank.

The generals who seized power steered a transition to civilian rule after disputed elections in March but are under pressure to ram through ambitious investment schemes and create jobs amid a global slowdown and US-China trade tensions.

A surge in the Thai baht is also hindering recovery by weighing on the competitiveness of exports and tourism.

The estimated 316 billion baht ($10.2 billion) package will be set aside for “urgent economic stimulus measures”, the finance ministry said, adding that the proposal needs final approval from the cabinet.

“It is expected that the Thai economy will be driven towards GDP growth of 3 percent,” the statement added.

The money includes aid for more than 900,000 farmers affected by drought, 1,000 baht ($30) handouts for tourism-related expenses, loans for small businesses and hikes in state welfare card subsidies.

Tourism remains the kingdom’s banker — accounting for a fifth of the economy — and Chinese visitors are integral.

Visa free exemptions for Chinese and Indian travellers are also part of the new proposal.

Critics have said former junta leader turned civilian premier Prayut Chan-O-Cha is relying too much on China for assistance.

Prayut has courted investment from Beijing for flagship project the Eastern Economic Corridor, a $45 billion plan across three eastern seaboard provinces.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...