Bangkok: The Cabinet has approved the second phase of the economic stimulus plan, allocating a budget of 18.488 billion baht to enhance competitiveness, develop human capital, and address the 19% US tax rate. A significant portion, totaling 8.488 billion baht, is earmarked for the Student Loan Fund (SLF) to support student loans.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Mr. Pichai Chunhavajira, disclosed that the Cabinet's approval seeks to bolster the competitiveness of entrepreneurs in targeted industries and Thai businesses. The initiative is in response to the uncertainties in global economic competition due to US reciprocal tariffs, aiming to mitigate the potential slowdown in the Thai economy anticipated in 2025, while establishing a framework for long-term growth.
The program encompasses two main projects. First, the project to enhance the competitiveness of entrepreneurs in targeted industries involves the Board of Investment's Competitiveness Enhancement Fund overseeing preparations for global economic competition. This includes the Global Minimum Tax (GMP) measure, intended to foster investment in targeted industries that create added value and facilitate technology transfer and personnel development, with a short-term budget of 10 billion baht managed by the Board of Investment (BOI).
Secondly, a human capital development investment project aims to counteract the risk of an economic slowdown in 2025. Funds are allocated to the Student Loan Fund to provide loans covering living expenses, tuition, and other education-related costs for 139,481 students during the 2025 academic year, utilizing a budget of 8,488 million baht.
The second phase of the economic stimulus program targets low economic growth impacts, competitive enhancement, and entrepreneur assistance, alongside human capital development. Future phases will involve the Economic Stimulus Program Policy Committee considering additional programs to support entrepreneurs affected by the reciprocal tariff policy through specialized financial institutions amid further economic uncertainties.