BANGKOK, Thailand – Deputy Prime Minister and Interior Minister Phumtham Wechayachai, serving as acting Prime Minister, chaired a meeting of the Economic Stimulus Policy Committee following two rounds of economic stimulus allocations totaling 133 billion baht. Of this amount, 10 billion baht was set aside for the national competitiveness enhancement fund, which targets key industries, while 8.488 billion baht was allocated to the Student Loan Fund.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira explained that during the initial funding phase, some government agencies were unable to complete procurement processes in time. As a result, 26 billion baht in unspent funds has been redirected to the emergency central fund. These funds will now be available for urgent needs, including efforts to revitalize the economy along the Thai-Cambodian border and address the impact of a 19 percent import tariff recently imposed by the United States on specific Thai products.
Agencies seeking to use these redirected funds must complete procurement processes by September 30, 2024. All requests are subject to approval by the Budget Bureau.
Regarding the effects of the increased US tariffs, Pichai stated that small businesses, particularly those that are clients of the Bank for Agriculture and Agricultural Cooperatives and the Government Savings Bank, have been affected. Both banks may be instructed to introduce additional support measures.
The government is also preparing to engage in trade discussions with the United States through the Team Thailand initiative. These talks will focus on local content requirements and on promoting greater use of domestic materials in Thai exports. Negotiations are scheduled to take place next week.
Pichai also noted that US consumers are now facing higher prices for certain imported goods, such as bananas from Thailand, due to the increased tariffs originally imposed during the Trump administration. The ongoing negotiations are expected to lead to greater flexibility in trade terms. (NNT)
