2024-07-22 20:00:03
Who doesn’t want free money? The Thai government wants to allocate 12.5 billion euros to help low- and middle-income people and boost the economy. However, Thais are skeptical about the move.
Thais aged 16 and over whose total income last year was less than 23,250 euros are entitled to a one-time subsidy of 10,000 baht (250 euros) in the last quarter of the year. In total, about 50 million Thais can use it. Finance Minister Julapun Amornvivat announced the news in mid-July.
Election promises
The benefit is subject to quite a few conditions. From August 1, people can register through an app. They will then receive an e-wallet with 10,000 baht in it. From October 1, they can use the money at local retailers affiliated with the scheme.
The free money scheme was an election promise by the ruling Pheu Thai Party, led by Prime Minister Srettha Taweesin. He wants to help the economy, which has not really recovered from the post-coronavirus period, and help low-income Thais. Srettha promised 5% economic growth per year, but the forecast for this year has been adjusted to a maximum of 2.4%. Shretta hopes to achieve an additional 1.5% growth by providing free money, but this is not guaranteed.
Businesses are enthusiastic. Central Restaurant Group (CRG), a large restaurant chain, has high hopes for the launch of digital shows. Its CEO told newspapers last week that it could easily boost annual sales by 5%. Bangkok Post .
Big chain money
But ordinary Thais are sceptical. Salinee Boonchai, 30, earns too much to qualify for benefits. She works for a big company’s interest group. “The big retail companies will make money from this,” she said at a table in a coffee shop near an Amazon chain in Bangkok. “It’s difficult for small local retailers who need the extra turnover the most to sign up to become sellers in digital wallets. This doesn’t make them any better off.”
Walking through a Bangkok shopping mall with two recently purchased blue toilet brushes, Ubon Jaibun (50) spewed fire when asked about the free money scheme. She is eligible for 10,000 baht because she earns no more than 15,000 euros a year as a meat broker for a small restaurant. “I am more interested in cash than e-wallets, which require me to register and only allow me to buy in certain stores. I am not happy with that.” She looked unimpressed.
She doesn’t believe it. “We also received cash to buy food during the coronavirus lockdown.” Thailand developed various programs in 2020 and 2021 to help low-income people through this difficult period. Many subsequently lost their jobs and were barely allowed to leave their homes. Although after repeated trials, the country has gained some experience in providing free money.
No ID card
Salinee is well aware of the problem with the idea of providing these 10,000 baths through digital exchange. “To register, you must have an ID card, but many people don’t have one.” Ubon also mentioned this problem. Salinee explained that the ID card contains the address of the city where you were born. “Only there can you spend the money in the digital wallet.”
But millions of residents of big cities like Bangkok come from rural areas and then have to travel there to spend these 10,000 bathrooms. Salinee: “It takes time and money to make it happen.” This is a big problem, especially for people who earn a minimum income of around 7.5 euros a day.
There are also some Thais who have much less to spend. Sarin points to the elderly. Depending on their age, people over 60 receive a pension of 50 to 67 euro cents a day to live on. “These are people who don’t have internet or smartphones to sign up. They can’t apply for a digital wallet to get 10,000 baht. This is the group that needs free money the most but can’t get it.”
Ubon doesn’t know yet whether she will be able to get an ID card to claim the 10,000 baht. She complains that the government already has such a huge national debt and then adds this to it. Salinee summed up Prime Minister Srettha’s initiative succinctly: “A 10,000 baht digital stock exchange is only for big companies and large retail chains to help them get to the top.”
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