Thailand’s key economic stimulus – an almost US$14bil (RM62bil) cash giveaway to its citizens – is poised to be abandoned by the next government under the daughter of Thaksin Shinawatra, according to local media reports.
Thaksin told the ruling Pheu Thai party and his daughter, Paetongtan Shinawatra (pic), to drop the plan, citing a party official it didn’t identify.
Thaksin’s move was seen as a way to shield his daughter from any adverse fallout from the cash stimulus, which had become contentious even before it was implemented due to questions over funding.
In 2017, a Thai court found former leader Yingluck Shinawatra, Thaksin’s sister, personally and criminally responsible for a policy to subsidise rice farmers.
The cash handout was a flagship campaign promise of the Thaksin-backed Pheu Thai party and the centrepiece of Srettha’s push to help the economy grow annually at 5% like many South-East Asian neighbours.
Yet disagreements including with the central bank and some lawmakers over how the massive stimulus will be financed – as well as the impact on inflation – have dogged its implementation.
“If it runs into legal issues and someone lodges a petition against it, there’s a risk that she can go to jail,” said Punchada Sirivunnabood, an associate professor at Mahidol University in Thailand. “If you go ahead with this plan, that’s one foot in prison already.” — Bloomberg
