Bangkok: The Ministry of Finance has announced a comprehensive package designed to support citizens, businesses in the transportation sector, and farmers as they navigate the impacts of the ongoing conflict in the Middle East. This initiative aims to curb inflation and prepare the public for long-term adjustments.
According to Thai News Agency, Mr. Ekniti Nitithanpraphas, Deputy Prime Minister and Minister of Finance, disclosed that the Cabinet has approved measures to assist those affected by the Middle Eastern conflict. These measures are intended to mitigate economic risks that could lead to stagflation, affecting all sectors. The government's strategy includes alleviating living costs for vulnerable groups, supporting a transition to clean energy, and ensuring liquidity for businesses and the agricultural sector. The Cabinet aims to reduce costs for businesses and farmers, ultimately lessening the financial burden on consumers.
The first set of measures targets vulnerable groups by increasing allowances for purchasing consumer goods through the State Welfare Card. Additionally, the general public will be encouraged to transition to clean energy through various loan projects facilitated by the Government Savings Bank and the Government Housing Bank, focusing on solar power and energy-efficient housing.
For the agricultural sector, the Bank for Agriculture and Agricultural Cooperatives is implementing a 30 billion baht loan program with co-payment interest rates. This initiative aims to reduce production costs for farmers while enhancing their earning capacity through low-interest funding for essential agricultural inputs and skills development.
Businesses will benefit from relaxed procurement criteria and financial support programs. The Ministry of Finance, in collaboration with the Government Savings Bank and the Small and Medium Enterprise Development Bank of Thailand, is offering soft loans and support programs to help businesses transform and adopt green technologies. The Export-Import Bank of Thailand is providing working capital and export insurance to Thai exporters facing increased transportation costs due to the crisis.
In the transportation sector, a budget has been approved to subsidize fuel costs, supporting various public and non-scheduled transport services for a total of 42 days. This measure aims to alleviate the financial burden on transportation operators and the public during the Songkran festival.
Mr. Ekniti emphasized the importance of these measures not just as immediate relief but also as preparation for adapting to a future with high energy prices. The government is committed to implementing these strategies swiftly to ensure that small-scale farmers, the public, and businesses can resume normal operations and lives as quickly as possible, laying the foundation for sustainable economic recovery and growth.