Digital Wallet Scheme To Be Rolled Out In Q4, Funding Through The Budget

Details of the government's digital wallet scheme have been filtering out this afternoon. PM Srettha believes the scheme, which will be rolled out in Q4 of this year, will boost growth by 1.2% to 1.6%. The MOF believes the scheme will also help the economy grow by nearly 5% in 2025. Note recent growth outcomes have been around the 2% level.

• Under the plan, 50 million Thai adults will be given 10,000 baht. The 500bn baht (14bn USD) scheme will be financed through the state budget, with 175b from this year's budget and 152bn from next year's budget. The remainder will come from money that was slated for the state owned Bank for Agriculture (see this BBG link for more details).
• Earlier plans had indicated the program would be funded by fresh borrowings.
• The market reaction hasn't been large so far. USD/THB is relative steady, last in the 36.30/35 region. We do have the BoT decision later, where some in the market are calling for a rate cut. Thailand equities are up around 0.50%.