Experts warn Thailand’s digital wallet plan could be a short-term fix
As Thailand plans its next round of digital wallet handouts, experts are raising concerns. The government’s initiative, aimed at distributing funds to teenagers, may not have the desired economic impact. In fact, some argue it could do more harm than good in the long run.
The Thailand Development Research Institute (TDRI) urged the government to reconsider its approach, advising a suspension of the digital wallet handouts for teenagers aged 16 to 20.
Somchai Jitsuchon, TDRI’s research director for inclusive development, voiced his concerns yesterday, March 20, stating that the second phase of the handout, targeting a younger demographic, would have far less economic impact than the first phase, which was aimed at vulnerable groups and state welfare cardholders.
“If the government truly wants to boost the economy, it should abandon short-term stimulus measures and focus on solving structural economic problems.”
Somchai highlighted that while the immediate impact of the digital wallet handouts might be limited, long-term benefits could be far greater if the funds were used to help teenagers acquire valuable skills.
“The government should focus on upskilling and reskilling, aligning young people with labour market demands.”
Somchai also pointed out that the funds could be better used to help teenagers develop skills that would prepare them for future employment, rather than simply handing out cash. He stressed that such investments in knowledge and training would lead to long-term economic growth, as these individuals would be better equipped to contribute to the Thai economy.
However, Somchai expressed concern about Thailand’s financial future, warning that the country’s financial sector is facing a decline in available funds.
“If the budget isn’t wisely managed, Thailand could miss out on crucial opportunities for human development, climate change mitigation, and transitioning to a digital economy.”
He called on the government to invest in digital infrastructure, including providing free internet access nationwide.
“This would boost productivity and give people the opportunity to develop skills and generate income.”
Somchai also urged the government to prepare for external and internal economic risks, including trade wars, rising household debt, and declining production capacity, reported The Nation.
With public debt projected to reach 70% of GDP in the coming years, Somchai cautioned that the economy could remain sluggish unless structural issues were addressed.
“The economy will remain sluggish, and over the next four years, the outlook will be similar unless structural issues are addressed.”
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