Thailand prepares for digital wallet benefit scheme amid growing criticism

The Thai government is putting the finishing touches on its digital wallet cash handout scheme, which aims to distribute 10,000 baht (US$276) to approximately 50 million citizens. On Thursday, Prime Minister Srettha Thavisin said that the details of the policy will be shared on July 24th.

The government stimulus package is designed to spur Thailand’s sluggish economic growth by stimulating underdeveloped provinces and regions. The cash handout project, however, has also attracted controversy, with criticism coming from the Bank of Thailand, former central bank governors and certain economists.

Cash benefits were expected to roll out in the fourth quarter but the government has been struggling to organize funding sources, according to Reuters.

Earlier this week, the Thai Ministry of Finance said that it estimates that no more than 90 percent of the 50 million eligible Thais will sign up for the cash handouts. This would reduce the costs from 500 billion baht (US$13.8 million) to 450 billion baht (US$12.4 billion). The decision to scale down the budget was reached after the National Anti-Corruption Commission (NACC) warned that setting up a high budget could lead to corruption, according to the Ministry.

The Thai opposition has also complained this week that the digital wallet project lacks clarity. Lawmakers say that the Ministry of Finance has repeatedly changed the conditions and criteria for the cash handout scheme, including the list of items that its beneficiaries would be able to purchase with the allocated money.

Prime Minister Srettha has defended the project, arguing that minor changes are expected and that the scheme will boost the economy amid factory and business closures.

“The capital injection will help spur manufacturing and create jobs,” Srettha says.

Another serious issue that the digital wallet scheme could be facing is Thailand’s digital divide. The scheme will attempt to reach 76 percent of Thailand’s 60 million population. However, many potential beneficiaries may not be able to access the digital wallet due to a lack of internet connection or access to smartphones, according to an analysis published by the Yusof Ishak Institute (ISEAS) in Singapore.

The Bank of Thailand says that the mobile application for the digital wallet overlaps with existing apps. One of them is the ThaID app which uses facial recognition for ID and has been in the works since 2019.

The new digital wallet is developed by the  Ministry of Digital Economy and Society (DES) and the Digital Government Development Agency (DGA). The security of the digital wallet project is overseen by the Digital Economy and Society (DES) Ministry’s National Cybersecurity Agency (NCSA).

Article Topics

digital economy  |  digital ID  |  digital wallets  |  financial inclusion  |  legislation  |  mobile app  |  ThaID  |  Thailand