Thailand's Government Revives Co-Payment Scheme to Boost Economy Amid Short-Term Challenges
September 14, 2025
The new government is planning to revive the popular co-payment scheme 'Khon La Khrueng,' aiming to boost private consumption and support economic growth in the latter half of the year, building on previous successes.
In the short term, the government is prioritizing immediate issues like flood recovery in Nan province and practical concerns such as inflation, energy costs, and agricultural prices, rather than pursuing controversial policies, given its limited timeframe.
Trade facilitation efforts include expediting free trade negotiations, simplifying customs procedures, and promoting international market access for SMEs and agricultural producers to maintain Thailand's export competitiveness.
Energy policies focus on accelerating clean energy projects, implementing targeted fuel subsidies for vulnerable groups, and ensuring a steady renewable power supply to attract foreign investment.
The government is reconsidering controversial projects like entertainment complexes and financial hubs, with an emphasis on transparency, to support long-term economic growth while avoiding market distortions through long-term price guarantees or cash handouts.
Support for SMEs remains a priority, with efforts to increase revenue, improve access to financial resources, and avoid minimum wage hikes to stimulate economic activity and protect small businesses amid economic headwinds.
Tourism recovery strategies include building traveler confidence through safety measures, improved border management, and targeted support for hotels in border areas, alongside initiatives like free vouchers to boost tourist spending.
Given the government's short tenure, quick-impact measures such as the co-payment scheme are expected to positively influence the stock market and investment sentiment, with projections of the SET index reaching around 1,300 points by the end of the year.
With just four months before the upcoming election, there is optimism that recent policy shifts will enhance economic sentiment and stability ahead of the 2025 polls.
Summary based on 1 source
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Bangkok Post • Sep 14, 2025
Setting a short-term agenda