BANGKOK, Thailand – The Thai Cabinet has approved a second phase of an economic stimulus package totaling 18.488 billion baht. The plan aims to boost national competitiveness, develop human capital, and prepare for the impact of a 19% U.S. reciprocal tariff.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealed that the stimulus focuses on enhancing the competitiveness of key industries and Thai entrepreneurs to face global economic uncertainties, including new tariffs from the U.S. It also aims to mitigate risks of Thailand’s economic slowdown projected for 2025 and lay foundations for long-term growth.
The stimulus consists of two main components:
- Enhancing Competitiveness of Target Industries
An allocation of 10 billion baht will be channeled through the Board of Investment (BOI) to promote investment in high-value, technology-transfer industries and human capital development. The fund will support private sector readiness to compete in the global economy and comply with measures such as the Global Minimum Tax.
- Human Capital Development via Student Loans
A budget of 8.488 billion baht will be allocated to the Student Loan Fund to provide living and tuition loans, as well as other essential education-related expenses, for 139,481 students in the 2025 academic year.
The Phase 2 stimulus aims to address slow economic growth, improve competitiveness, and assist affected entrepreneurs. Further stimulus projects, particularly to help businesses impacted by reciprocal tariffs, will be considered by the Economic Stimulus Policy Committee, with support possibly provided through specialized financial institutions to address ongoing economic uncertainties. (TNA)
