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Saturday, May 4, 2024

Thai government’s policy paradox: Digital wallet scheme and minimum wage hike under fire

Photo: Bangkok Post

The Thai government of Prime Minister Srettha Thavisin has faced significant challenges since coming to power seven weeks ago, with various commitments made during their campaign now under scrutiny. A crucial task includes the repatriation of Thai citizens affected by the Middle East conflict and the ongoing Israel-Hamas unrest.

The Thai government’s promise to hike the daily minimum wage to 400 baht this year and 600 baht within four years may not be enough to entice Thais working abroad to return, considering wages in their host countries are higher.

Consequently, Thailand’s reliance on labour from neighbouring countries is expected to continue.

The administration’s planned 10,000-baht digital wallet scheme has raised questions about its funding source, with economists highlighting potential long-term risks based on certain financing forms.

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