Bangkok: Thailand’s new Prime Minister Paetongtarn Shinawatra delivered her government policy statement to parliament on Thursday, outlining immediate plans to address the country’s economic challenges with a focus on reducing high household debt and unlocking growth potential.
In her speech to the National Assembly, Paetongtarn said the Thai government plans to expedite a comprehensive debt restructuring, particularly on home and auto loans, as household liability in the Southeast Asian nation is estimated at over 90 percent of its gross domestic product (GDP).
With household debt in Thailand currently exceeding 16 trillion baht (about 474 billion US dollars) and non-performing loans on the rise, Paetongtarn said the initiative seeks to assist borrowers both within and outside the formal financial system, Xinhua news agency reported.
She highlighted the government’s commitment to protecting Thai business owners, especially small and medium enterprises (SMEs), from unfair competition from foreign online platforms. SMEs, which account for about 35 percent of the employment and GDP, will also be provided financial assistance to strengthen their pivotal role as drivers of the economy.
Emphasising the need to build confidence and encourage consumer spending while also alleviating financial burdens and creating job opportunities, the prime minister said the government will push forward its flagship campaign promise, the digital wallet handout scheme, which will prioritize vulnerable groups and lay the foundation for Thailand’s digital economy.
Paetongtarn noted that without financial and fiscal measures to support economic expansion, the kingdom’s economic growth is expected to be less than 3 per cent per year.
“It is a significant challenge for the government to urgently restore robust economic growth,” she said. “We must explore new opportunities to boost income at both the national and individual levels, whether through restructuring the economy or developing new engines for growth.”
The two-day parliamentary session, scheduled to conclude on Friday, marks the formal start of Paetongtarn’s administration.
Paetongtarn, the 38-year-old Pheu Thai Party leader and daughter of former Prime Minister Thaksin Shinawatra, was elected Thailand’s youngest and second female premier after winning a parliamentary vote in August.
–IANS