Stimulus targets broad groups

Measures needed to boost economy

The government is scheduled to introduce this month stimulus measures that cover all groups of farmers, small and medium-sized enterprises (SMEs), startups, low-income earners, community enterprises and citizens.

Finance Minister Uttama Savanayana said after a joint meeting between ministry officials and chiefs of state banks, chaired by Deputy Prime Minister Somkid Jatusripitak, new stimulus measures are urgently needed to boost the economy to grow more than 3%.

“The meeting discussed stimulus measures for the second half as the Thai economy faces higher risks from external factors,” he said.

“The meeting agreed the government needs to do something to maintain economic growth momentum in the second half regardless of the global economic performance. If the government does nothing, the economy may grow by less than 3% this year.”

Thailand’s economic growth in the first quarter was 2.8%, with a weak second quarter expected because of the escalating US-China trade war and shaky domestic political situation.

Under the new stimulus packages, state banks such as the Small and Medium Enterprise Development Bank would come up with measures to assist SMEs and startups, while the Government Savings Bank and Krung Thai Bank would introduce aid measures for low-income earners.

The Government Housing Bank is expected to implement rules to assist citizens, while the Bank for Agriculture and Agricultural Cooperatives and the Agriculture and Cooperatives Ministry will offer measures to help farmers affected by the drought.

Mr Uttama said tourism promotion measures to attract foreign tourists as well as boost domestic tourism will also be introduced.

“Each department is required to consider in detail measures and the available budget,” he said.

The government will continue with state welfare cards for low-income earners, but the ministry is revising the criteria and budget, said Mr Uttama.