Thailand is set to launch a digital cash handout program aimed at stimulating its sluggish economy, with around 50 million citizens eligible to receive 10,000 baht (approximately $275) in digital money.
The initiative, dubbed the Digital Wallet, has been met with criticism since its announcement in April. Registration for the program is scheduled to begin on August 1, according to Prime Minister Srettha Thavisin.
In a bid to revive its economy, Thailand has also introduced updated visa measures to attract more tourists. The new regulations, which came into effect on July 15, include 60-day visa exemptions, Visa on Arrival (VOA) schemes, and Destination Thailand Visa (DTV) programs, as well as student visas.
However, Thailand’s economy continues to struggle, with analysts warning that the country is falling into the middle-income trap. This phenomenon is characterized by low productivity and poor education, resulting in a large portion of the workforce being stuck in low-paid, low-skilled jobs.
Unlike its Southeast Asian neighbors, which are recovering well from the pandemic, Thailand’s economy grew by a mere 1.9 percent in 2023. The country’s heavy reliance on tourism has made it particularly vulnerable to the economic downturn, with Chinese tourists making up a significant portion of its foreign visitors.
In 2019, Chinese tourists accounted for one-quarter of Thailand’s 40 million foreign visitors. However, despite hopes of a rebound in 2023, tourist numbers have failed to return to pre-pandemic levels, dealing a significant blow to the country’s economy.
