Bangkok: Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, has expressed his excitement over the lightning-fast sale of 2 billion baht worth of "Savings Plus" government bonds, which sold out in just 21 seconds through the Paotang app. Ekniti announced that an additional 2 billion baht bond will be available for purchase through the Bond Connect Platform from August 3-5.
According to Thai News Agency, Ekniti emphasized that the "Government Savings Bond Plus" is more than just a new savings product. It is a strategic tool aimed at addressing significant structural challenges in Thailand. He highlighted the necessity of this initiative by pointing out the financial vulnerabilities of Thai households, the nation's declining savings rates, and the urgent need to prepare for an aging society.
Ekniti noted that many Thais lack sufficient savings to cover essential expenses for six months, and household debt exceeds 86% of GDP. He also stressed the falling national savings rate, which has decreased from 27.7% of GDP in 2014 to 25.3% recently. The aging population is another concern, with 53 provinces having over 20% elderly residents, many of whom lack financial security.
In addressing these challenges, Ekniti stated, "Our challenge is not just 'how to get people to start saving,' but 'how to make saving sustainable and build upon that to investment.'" He explained that the "Government Bond Savings Plus" offers a fixed interest rate of 1.80% per year for a 3-year bond and 2.80% per year for a 10-year bond. Investors will benefit from additional advantages compared to traditional savings methods.
The program offers monthly "Plus" benefits, attractive interest rates, a transparent secondary market, and diverse distribution channels, including the SBM Wallet and other financial institutions. Citizens can start investing with as little as 100 baht through the SBM Wallet or 1,000 baht through other platforms.
Ekniti highlighted that the "Savings Plus" initiative provides benefits at multiple levels: household, capital market, and fiscal-demographic structure. It encourages consistent monthly savings, supports a transparent capital market, and prepares the country for an aging society by diversifying government fundraising tools.
The initial batch of Savings Plus bonds sold out rapidly, and further opportunities will be available for small-lot investors through the Bond Connect Platform from August 3-5. The initiative relies on the collaboration of the Public Debt Management Office, the Bank of Thailand, the Securities and Exchange Commission, the Stock Exchange of Thailand, and various financial institutions.