In a recent announcement by Deputy Finance Minister Julapun Amornvivat, a new “super app” aimed at facilitating the 10,000-baht digital wallet scheme has been introduced, designed to integrate seamlessly with the mobile banking applications users already have on their smartphones. This groundbreaking app has been developed collectively by the Ministry of Digital Economy and Society (DES) and the Digital Government Development Agency (DGA), marking a significant leap in digital-based policy implementation in Thailand.
The super app introduces an open-loop solution that encourages broader accessibility by allowing its users to make purchases across a wide range of businesses using straightforward instructions. This initiative is set to revolutionize how beneficiaries access and utilize their digital wallet funds, moving a step further in the government’s push towards a more digitized economy.
One of the key highlights of this digital wallet scheme is its inclusivity; recipients of the initiative do not need to have an existing bank account with state-owned banks to access their funds. This feature has been illustrated through the utilization of the “Tang Rat” app, a previously developed application by the Interior Ministry and DGA, which is currently used by individuals receiving pensions or disability funds to monitor their payment receipts.
Detailed on April 10, the 500-billion-baht digital wallet handout policy is expected to be fully rolled out in the final quarter of the year. The financial underpinning of the scheme comprises a blend of budget allocations for the fiscal year 2025 and reallocated funds from the current fiscal year, along with a significant loan from the Bank for Agriculture and Agricultural Cooperatives (BAAC), totaling a fiscal strategy meticulously outlined by Mr. Julapun.
However, this ambitious financial maneuver has not been met without skepticism. Saknarong Siriporn Na Ratchasima, a deputy secretary from the Thai Sang Thai Party and a former specialist at the BAAC, expressed concerns over the liquidity risks tied to the sizeable loan required for the digital wallet scheme. Saknarong highlights the potential destabilizing effects on the BAAC’s revenue prospects and its internal fund, still grappling with debts from previous government initiatives such as the rice-pledging program initiated under the Yingluck Shinawatra administration.
Despite these concerns, the BAAC had previously reported satisfactory liquidity levels, with its fund adequacy comfortably meeting the criteria stipulated by the Bank of Thailand (BoT). According to their report, the bank maintained a liquidity coverage ratio well above the BoT’s minimum requirement, supported by robust assets. Nonetheless, Saknarong warns of the cascading issues that might arise if the bank proceeds with the digital wallet loan amidst lingering debts, potentially jeopardizing its core mission to assist Thai farmers.
As the government gears up for the digital wallet scheme’s implementation, reassurances about the BAAC’s fiscal health and strategies to mitigate potential liquidity risks remain a focal point of discussion. The initiative’s success hinges not only on its technological deployment but also on a solid financial foundation that ensures long-term sustainability and stability for the BAAC and the broader Thai economy.
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