Thailand to roll out Digital Wallet Program in May

Thailand plans to boost its economy with a $14.3 billion digital wallet program. Prime Minister Sreta Tabishin told reporters on January 9 that the distribution program will continue until May. The Government will not be obliged to finance the plan. The program, which provides 50 million Thais with 10,000 baht (about $285) to spend in their communities, is a signature election policy of the ruling Phu Thai Party.

The Government wants to boost growth in Southeast Asia's second-largest economy to at least 5 percent each year, with last year's growth forecast at 2.4 percent. The handout plan has come under fire from economists and some former central bank governors who say it could be fiscally irresponsible and fuel inflation.

Srettha, who is also finance minister, said he would meet the country's central bank governor on Wednesday to discuss the digital wallet and other matters. This week, the premier criticized the Bank of Thailand for its interest rate hikes, saying they hurt small businesses when inflation is low.

"There might be disagreements, but there must be a conversation," Srettha said, adding that it was a routine discussion.

Thailand's headline consumer price index (CPI) dropped 0.83 percent in December, making it the eighth straight month outside the central bank's inflation target of 1 percent to 3 percent.