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PUBLISHED : 13 Feb 2024 at 06:49
Prime Minister Srettha Thavisin on Monday defended the need to push for the 10,000-baht digital wallet scheme.
He made his remark in response to a statement made by Move Forward Party (MFP) deputy leader Sirikanya Tansakul on Sunday.
Ms Sirikanya said that the government should draw up a backup plan due to the uncertain fate of the digital wallet scheme and suggested that her party did not see the rollout of the scheme as a cure-all for the country’s many problems.
In addition, the fate of the scheme hinges on the decision of the government’s digital wallet policy committee that will meet on Thursday.
“If the government truly wants to see the economy recover, it needs a backup plan as the fate of the country cannot hinge on just one policy [the 10,000-baht digital handout],” Ms Sirikanya said. She also suggested the government speed up the process to include the digital wallet policy in the annual budget expenditure plan.
Mr Srettha conceded that the government had not previously done enough to communicate the details of the digital wallet scheme to the public.
He said he is now ready to clear up any public doubts, insisting that the scheme will help improve the country’s economic situation.
The premier added said he will clarify all aspects of the policy at the committee meeting on Thursday.
Last week, the National Anti-Corruption Commission (NACC) released the results of its own feasibility study into the scheme, which indicated it may be prone to exploitation or corruption.
Deputy Finance Minister Julapun Amornvivat said on Monday the findings have been submitted to Government House and will be examined by the cabinet today.
The loan bill will not be brought up in the panel meeting this week, he added.
The NACC has warned the government about a range of potential pitfalls tied to the scheme, from graft to legal risks while insisting the economy is not yet facing a crisis.
The digital wallet handout is the flagship policy of the Pheu Thai-led government to stimulate the economy, with 10,000 baht to be handed out to 50 million Thais.
The legality of the scheme has been called into question. However, the government plans to request a 500-billion-baht loan to fund it, which goes against the party’s election campaign promise that it would not resort to taking out any loans.
PUBLISHED : 13 Feb 2024 at 06:49
Prime Minister Srettha Thavisin on Monday defended the need to push for the 10,000-baht digital wallet scheme.
He made his remark in response to a statement made by Move Forward Party (MFP) deputy leader Sirikanya Tansakul on Sunday.
Ms Sirikanya said that the government should draw up a backup plan due to the uncertain fate of the digital wallet scheme and suggested that her party did not see the rollout of the scheme as a cure-all for the country’s many problems.
In addition, the fate of the scheme hinges on the decision of the government’s digital wallet policy committee that will meet on Thursday.
“If the government truly wants to see the economy recover, it needs a backup plan as the fate of the country cannot hinge on just one policy [the 10,000-baht digital handout],” Ms Sirikanya said. She also suggested the government speed up the process to include the digital wallet policy in the annual budget expenditure plan.
Mr Srettha, also the finance minister, conceded that the government had not previously done enough to communicate the details of the digital wallet scheme to the public.
He said he is now ready to clear up any public doubts, insisting that the scheme will help improve the country’s economic situation.
The premier added said he will clarify all aspects of the policy at the committee meeting on Thursday.
Last week, the National Anti-Corruption Commission (NACC) released the results of its own feasibility study into the scheme, which indicated it may be prone to exploitation or corruption.
Deputy Finance Minister Julapun Amornvivat said on Monday the findings have been submitted to Government House and will be examined by the cabinet today.
The loan bill will not be brought up in the panel meeting this week, he added.
The NACC has warned the government about a range of potential pitfalls tied to the scheme, from graft to legal risks while insisting the economy is not yet facing a crisis.
The digital wallet handout is the flagship policy of the Pheu Thai-led government to stimulate the economy, with 10,000 baht to be handed out to 50 million Thais.
The legality of the scheme has been called into question. However, the government plans to request a 500-billion-baht loan to fund it, which goes against the party’s election campaign promise that it would not resort to taking out any loans.
PUBLISHED : 13 Feb 2024 at 06:36
The air force will open up some of its facilities and golf courses for public use, but access will be conditional, said commander-in-chief, ACM Punpakdee Pattanakul.
This clarification came after he agreed to Prime Minister Srettha Thavisin’s request to give up the force’s Kantarat Golf Course located between runways of Don Mueang airport and allow access to some of its other properties to develop state projects.
In addition to the Kantarat golf course, the premier also sought the air force’s cooperation in permitting the development of the nearby Dhupatemiya Stadium Golf Course into a sports complex. Mr Srettha is also seeking access through the Wing 1 facilities for use by the adjacent commercial airport in Nakhon Ratchasima and constructing a ring road through Wing 41 to relieve traffic jams in downtown Chiang Mai.
The prime minister said a panel of relevant bodies will study the issue.
On Monday, ACM Punpakdee explained issues surrounding access through the air force properties will need to be fleshed out before any projects can proceed.
Mr Srettha earlier said he wanted the Kantarat Golf Course to serve the government’s plan to expand and upgrade Don Mueang airport.
ACM Punpakdee said that the sections of the golf course the government intends to utilise must be established first. “That will need a detailed discussion on the condition that the air force still retains its full ownership of the golf course,” he said.
As for the Wing 41 plan, if motorists are allowed to enter the base, they might have to register with the air force, and background checks might also be performed. Vehicles going into a security zone will also face inspection. The base where the ring road will cut through will also be fenced off and security cameras installed, he added.
Getty ImagesA small grocery store in India’s financial capital Mumbai has begun asking customers to pay cash as a popular digital payments service, which it used until now, is facing uncertainty over its survival.
India’s central bank has asked Paytm – the company that revolutionised digital payments in the country – to stop all services offered by its banking division, also known as the wallet service, due to “persistent non-compliance” of its rules. The division supports Swift payments through the Paytm app, which has more than 330 million users.
The Reserve Bank of India (RBI) has reportedly accused Paytm of financial crimes, including falsifying customer information and money laundering.
It has asked the company to stop accepting deposits into people’s Paytm bank accounts, or wallets, from 1 March, although customers would be allowed to continue making payments until the balance in their accounts is exhausted.
Meanwhile, Paytm has denied the allegations. In a statement the company said that “the Paytm app remains fully operational, and our services are unaffected”.
The app can continue to facilitate quick payments between non-Paytm bank accounts as an intermediary but it can’t accept direct deposits.
This would severely impact the company’s wallet business. Paytm wallet is almost like a bank account in which people can receive deposits, keep money and make payments – all done by scanning a QR code or using mobile phone numbers as their identity.
People can also transfer money from their wallets to their accounts in other banks and vice-versa.
Not surprisingly, the regulatory crackdown has come as a blow to thousands of small business owners who relied on the app for making quick and easy transactions.
It has also left Paytm in a dire state, as investors pulled out billions of rupees after the company’s shares began to tank following the order.
Industry experts say the move could be a precursor to the payments bank losing its license in the next few weeks – further adding to investor nervousness.
On Thursday, RBI Governor Shaktikanta Das said Paytm had been given sufficient time to rectify lapses.
“The RBI action is always proportionate to the gravity of the violation and is in interest of systemic stability and protection of consumer interest. Action is taken when regulated entities do not take effective steps,” Mr Das said.
A Paytm spokesperson told the BBC that the firm was taking the RBI directive “very seriously”.
“We respect the RBI’s decision and are working diligently to address the concerns raised,” the spokesperson added.
Paytm’s founder Vijay Shekhar Sharma, once named as India’s youngest billionaire, has been firefighting. He is motivating employees, calming investors and assuring merchants. Mr Sharma met RBI officials and reportedly even approached the country’s finance minister for help.
This isn’t the first time that Paytm has run into trouble with the banking regulator. Since 2018, the RBI has pulled up the firm at least four times over a series of lapses.
Srinath Sridharan, a financial expert, says that the central bank’s concerns are serious.
“The RBI has used provisions of a law that gives powers to the regulator to rule in public interest. This shows the gravity of the situation. Paytm has lost the regulator’s trust,” he said.
Launched in 2010, Paytm gained popularity after India banned high-denomination notes in 2016, a move that sucked cash out of circulation and boosted online transactions.
People began using the app for a range of transactions, including buying household goods, paying tuk-tuk drivers and even utility bills. Paytm saw big investments by Japanese technology investor SoftBank and counted Warren Buffett and China’s Alibaba among its early investors.
The Paytm payments bank – which is at the centre of the current regulatory storm – got its banking license in 2017.
The bank can accept deposits of up to 200,000 rupees ($2,411; £1,907) but it cannot lend money; it offers digital banking services, fixed deposits, and sells third-party insurance and loans.
The bank has 50 million accounts, including those of merchants who accept payments using the platform’s blue-and-white QR code stickers.
Mr Sharma has said that his company is exploring third-party banks to provide back-end banking support to merchant accounts, whose transactions contribute half of Paytm’s revenues.
But this would mean that the margins earned on deposits and transactions would have to be shared with the partner bank and would further strain an already loss-making entity – Paytm has lost nearly 80% market value since its stock market listing two years ago.
Additionally, the company might face challenges finding a banking partner due to the regulatory hassles its currently mired in.
Paytm has been trying to reassure merchants through calls and messages, but analysts say severe restrictions and uncertainty is likely to impact the company’s customer retention.
Traders have begun shifting from Paytm to other payment options. Banks, including the government-run State Bank of India (SBI), have already offered to help merchants transition with new QR codes and point-of-sale machines.
According to data by market intelligence firm, Sensor Tower, Paytm app has seen a 20% reduction in downloads since the RBI ruling, while rival apps like Google Pay and PhonePe have seen a 50% jump in downloads, Reuters news agency reported.
The bigger battle to fight will be on reputation, say experts.
Experts say the ongoing crisis at the firm has raised questions about the efficiency of the firm’s managing board, which includes finance veterans and former RBI officials, and that the banking regulator may seek changes in the board’s management structure.
They have also expressed concerns over controlling interest of the founder in both the parent entity – One97 Communications, which houses the digital payments business – and the payments bank, saying the two are not operating at arm’s length.
The action against Paytm comes at a time when India’s most famous and expensive start-up – edtech company Byju’s – is facing problems after battling a series of financial challenges. This has led experts to question the role of corporate governance in high-profile start-ups.
It has also sent ripples across the country’s fintech and start-up firms – a group of founders have written to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and Mr Das urging a rollback of sanctions on Paytm, calling it detrimental for the Fintech ecosystem.
But Mr Das has clarified that the entire system needn’t be concerned as the issue is with a “specific institution”.
PUBLISHED : 13 Feb 2024 at 06:15
CHIANG MAI: The Ministry of Public Health will soon announce measures to promote artificial insemination among people wanting to be parents, including among the LGBTQ community, as part of efforts to boost the birth rate.
Minister Cholnan Srikaew said during a meeting with Jos Vandelaer, the World Health Organisation (WHO) representative for Thailand at Nakhonping Hospital on Monday that the ministry has assigned the Department of Health (DoH) to come up with measures to support access to infertility treatments and preconception counselling.
The DoH was told to find ways to maximise the ability to provide intrauterine insemination (IUI) and in-vitro fertilisation (IVF) services for those in need.
A law amendment to make infertility treatment accessible to single women and the LGBTQ community is also under consideration, Dr Cholnan said, adding such an amendment is expected to be tabled in March.
The ministry plans to push infertility treatment as a fundamental benefit covered by the nation’s health security scheme.
Boosting fertility has been placed on the national agenda under the “Give Birth, Great World” campaign, said Dr Cholnan.
The ministry has been working to protect the reproductive and sexual health rights of people, especially those in sensitive groups. This mission has received good support from international agencies, including the WHO, the United Nations Population Fund (UNFPA) and the United Nations Children’s Fund (Unicef), he said.
According to the Interior Ministry, the current population is 66,052,615, down 0.06%, or 37,860, compared to 2022. The number of births last year — 485,085 — was the lowest in 70 years.
Road incident pair face police charges
Prime Minister Srettha Thavisin on Monday announced that ensuring the highest level of security for the royal family is a top priority for the government as he urged police to step up efforts to prevent violent clashes in the wake of a brawl last Saturday.
He said he ordered relevant agencies, including the National Intelligence Agency (NIA), to implement stringent security measures to ensure the safety of royal motorcades. The members of the royal family have royal duties to fulfil, and it is of the utmost importance for the government to facilitate and provide protection, he said.
The prime minister’s directive follows the Feb 4 incident in which student activist Tantawan Tuatulanon and a colleague from the Thalu Wang group attempted to interrupt the royal motorcade of HRH Princess Maha Chakri Sirindhorn on an expressway in Bangkok by honking their car horn and cutting into the convoy’s lane.
Later on Saturday, Ms Tantawan and her group went on to conduct an opinion poll at Siam BTS station in front of Siam Paragon, asking people whether they thought royal motorcades created trouble.
A royalist group calling itself Thai People Protecting the Monarchy also showed up, and shortly after the poll had been conducted, a violent brawl erupted.
In the wake of the clash, Mr Srettha urged all sides to avoid violent confrontations and express their differences of opinion in a more appropriate setting.
“Use of violence or hate speech should be reduced. A more proper forum should be used such as parliament or an academic seminar. I believe all sides want national unity and an atmosphere conducive to talks.
“I’ve asked the national police chief to prevent confrontations. But above all, the safety of the royal family is of utmost importance. I don’t want to see a repeat of the Feb 10 incident,” he said.
National police chief Pol Gen Torsak Sukvimol said on Monday formal charges will be pressed this week against the pair over the expressway incident.
“Please give us two more days to gather clear evidence. There will definitely be arrests,” he said.
Prosecution would lead to the revocation of temporary release on bail for some suspects, he said.
He said the pair were not believed to have acted alone, and there were other people advising them in their protest activities. On Saturday, the group had refrained from action that would have otherwise caused legal problems for them.
“I cannot confirm whether any politician was involved, but I can confirm that there are advisers,” Pol Gen Torsak said.
Pol Gen Torsak defended police against criticism that they were slow to take legal action against the pair, saying he has worked on protecting royalty for a long time and police are ready to protect the royal family with their lives.
“Protection of the royal institution is the first and foremost task of police,” he said.
Deputy police chief Pol Gen Surachate Hakparn, who is in charge of security and traffic, said police are also considering whether Ms Tantawan’s action is an offence under the lese majeste law or under Section 116 of the Criminal Code.
Pol Maj Gen Atthaporn Wongsiripreeda, commander of Metropolitan Police Division 1, said Ms Tantawan and Natchanon Pairote were summoned on Monday for questioning over the Feb 4 incident
However, the pair had sought to postpone the meeting to Feb 20, saying they had classes, he said.
On Feb 8, 2022, she also led an activity in front of Siam Paragon and then hosted a live broadcast on the topic, which resulted in Ms Tantawan being charged with royal defamation on March 5.
Ms Tantawan posted on Facebook on Sunday night that she had not disrupted or blocked the royal motorcade and the incident was the accidental result of her and her colleague driving fast as they were running late to a meeting.
Meanwhile, Move Forward Party Wiroj Lakkhanaadisorn posted on his Facebook account that the government should also take legal action against the royalists involved in the Feb 10 fracas, arguing they, too, had undermined the institution.
Getty ImagesMany had said it was Joko Widodo’s “man of the people” image that helped score his first presidential victory in July 2014.
The former furniture salesman was Indonesia’s first leader from outside the political and military elite. His decisive win was propelled by people’s frustrations with corruption and nepotism in the country’s young democracy, which is also the world’s third largest.
When he was first became president, Time magazine hailed him as “the new face of Indonesian democracy”.
Under the 62-year-old, Indonesia’s GDP grew by a cumulative 43% since he entered office with the country also seeing a boost in infrastructure.
And even as he is about to step down he remains hugely popular, enjoying consistently high approval ratings of more than 70% – turning from a once fresh-faced figure to a powerful kingmaker.
But the enviable legacy he is leaving behind has been somewhat marred by a perceived attempt to build a political dynasty through his eldest son.
Mr Widodo was born in 1961 in the city of Solo to a family of wood sellers, who lived in a riverside shack until they were evicted by the local government.
He first entered politics with the Indonesian Democratic Party of Struggle (PDI-P) in 2005 when he was elected mayor of Solo, a city in central Java.
In 2012, he was elected the governor of Indonesia’s capital Jakarta with a resounding victory. He grew in popularity as a grassroots leader who was able to empathise with the poor.
Barely two years later, Mr Widodo was elected president. He made anti-corruption the mantra in his campaign and championed meritocracy.
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In a country marred by dynastic politics and corruption, many Indonesians saw him as a revolutionary.
“In 2014, there was a slogan, ‘Jokowi is one of us’. He was not a typical Indonesian politician,” said political analyst Firman Noor from Indonesia’s National Research and Innovation Agency.
“Everybody had high hopes for a better democracy,” he said.
Mr Widodo’s administration had a somewhat shaky start, rushing into some policies only to backtrack on them later.
Over the years, he built a strong track record on economic growth and infrastructure development. His infrastructure push produced 16 new airports, 18 new ports, 36 dams and over 2,000 kilometres of toll roads. Indonesia is expected to overtake Russia and the UK to become the world’s sixth largest economy by 2027, according to IMF forecasts.
All these while remaining close to the ground. One of his political trademarks, known in Indonesian as “blusukan”, involved impromptu visits to connect with the people and listen to their needs and grievances.
But this one-of-us image lost some of its sheen.
Mr Widodo revived the death penalty for drug traffickers shortly after entering office. Fourteen people were executed within six months of his election amid international outcry.
For his re-election bid in 2019, Mr Widodo again raised eyebrows by picking Islamic cleric Ma’ruf Amin as his running mate.
His second stint in office saw him appointing controversial ex-general Prabowo Subianto as defence minister. Mr Prabowo, who was Mr Widodo’s bitter opponent in the past two elections, has faced allegations of human rights abuses. Rights groups said the appointment marked a “dark day” for the country.
Mr Prabowo is now the frontrunner for next Wednesday’s elections. His running mate is none other than Mr Widodo’s eldest son Gibran Rakabuming Raka.
Mr Widodo has not openly endorsed any candidate, but has appeared at Mr Prabowo’s campaign events. Analysts said this has widened tensions between Mr Widodo and his own party. The PDI-P’s candidate Ganjar Pranowo was previously seen as Mr Widodo’s shoo-in successor.
More recently, critics have accused Mr Widodo of bending rules to build his political dynasty – an irony for someone who once declared that “becoming a president does not mean channelling power to my children”.
A constitutional court, where Mr Widodo’s brother-in-law serves as chief justice, controversially cleared the way for 36-year-old Mr Gibran to run for vice-president – Indonesian law had initially required him to be older.
Critics believe Mr Gibran, if elected, would simply serve as a proxy for his father.
The president had earlier rubbished allegations that he was seeking to build a dynasty, telling the BBC in 2020: “If I directly appointed my family, or my son, as a minister, that’s a political dynasty. But if they participate in elections, it’s the people who decide. Not Jokowi.”
Mr Widodo will also be remembered for his work to assert Indonesia’s presence on the global stage, despite early criticism that he had little experience in foreign policy.
It was on Indonesian soil that US President Joe Biden and his Chinese counterpart Xi Jinping met for the first time as leaders of their countries – during the G20 summit in Bali in November 2022.
Indonesia was the first country in Asean (or the Association of South East Asian Nations) to assume the G20 presidency.
During its tenure, Mr Widodo also offered to broker peace between Russia and Ukraine. His visits to both countries in June 2022 was the first by an Asian leader since Russia’s invasion of Ukraine in February.
Those efforts made little headway, but he managed to push the G20 member states to adopt a joint declaration condemning the invasion – a feat for someone who has maintained throughout his tenure that diplomacy is not his forte.
This was also an opportunity for Mr Widodo to show Indonesians that he was trying to tackle the country’s food crisis at its source. Indonesia is dependent on Ukraine for wheat and Russia for fertiliser.
Closer to home, Mr Widodo had sought to use Asean to push for peace amid Myanmar’s bloody civil war, although that too has achieved little so far.
Indonesia’s wealth of natural resources makes it valuable to global powers. Late last year, it strengthened ties with the US after Mr Widodo visited Mr Biden in the White House, despite the countries’ differing views on the war in Gaza.
Indonesia has also cultivated closer ties with China under Mr Widodo’s leadership. Large Chinese investments have created jobs and diversified Indonesia’s economy.
However an influx of Chinese money and workers – Beijing pledged $21.7bn in new investments last September to strengthen economic and political ties – have also stirred discontent among Indonesians. Many worry that their country will be caught in a debt trap.
Mr Widodo’s legacy may be tainted by his perceived failure to entrench the democratic values he first campaigned for, but his administration has strengthened Indonesian’s economy and its international profile.
Based on his current approval ratings, he will be stepping down as Indonesia’s most popular president.
With reporting from BBC Indonesian
Five meth pills ‘too many’ given crisis
PUBLISHED : 13 Feb 2024 at 05:23
Prime Minister Srettha Thavisin on Monday said the government is ready to review a ministerial policy that will lower punishment for drug users found in possession of five meth pills or less.
The premier made the remark following an announcement of a new limit on methamphetamine pill possession signed by Public Health Minister Cholnan Srikaew on Feb 9.
The new policy specifies that five methamphetamine pills are the maximum amount that a person may possess and still be regarded as a user.
But the five-pill limit has sparked a social media backlash, with many criticising that the amount is too much given the country is plagued by narcotics.
Mr Srettha urged the public to wait and see after the measure is implemented.
“People should not possess any quantity of drugs, no matter if it’s five pills or one pill,” he said. “But we will have to try the new policy and see if it works.”
The premier stressed that the government is addressing the narcotics issue as part of its national agenda and has ramped up efforts to stamp out drug smuggling along the border while supporting drug abuse rehabilitation.
According to Dr Cholnan, the new meth pill possession policy is based on medical science and agreed upon by the public ministry’s psychiatrists.
The new limit was agreed upon during a meeting of various agencies, including the Office of Narcotics Control Board (ONCB), Royal Thai Police, the Ministry of Justice, public prosecutors and the Court of Justice, on Nov 3 last year.
Unser the new policy, possessors of no more than five pills will be regarded as psychiatrically ill patients and subject to rehabilitation.
If they refuse to do so, legal action will follow, Dr Cholnan said.
Those found with more than five meth pills will face a charge of possession of narcotic drugs, in which the severity of penalties will be equal to drug distribution, export or import, with jail terms ranging from one to 10 years.
However, Dr Cholnan said that no matter how small the quantity, if the possessor is considered as having the intention to distribute, they must face severe punishment.
“The government will continue to crack down on drug rings and remove drugs from society,” he said.
Meanwhile, addicts must undergo medical treatment to ensure they won’t reuse again and be able to return to society, he said.
However, legal complexities arise when considering cross-border transactions and carbon credit projects based in developing countries. Proving misrepresentation or harm can be challenging, especially when dealing with projects with unclear additionality, permanence, and double-counting risks. Additionally, different verification standards and regulatory environments create further hurdles in enforcing uniform legal consequences.
The International Carbon Credit (ICC) Framework in Singapore permitting companies to offset some of their taxable emissions with carbon credits is a step in the right direction, but analysing its effectiveness would require some more time as high-quality projects that can benefit the climate are not yet available.
International cooperation is needed to establish clear legal frameworks and enforce consistent standards across borders, ensuring everyone plays by the same rules.
Unfortunately, countries at the United Nations’ COP28 climate summit in Dubai in December failed to seal a deal on carbon trading rules. Until there is consensus, the voluntary carbon market continues to be the main channel for private capital investment in initiatives focused on reducing or eliminating greenhouse gas emissions.
Another pitfall is that carbon credits allow companies to offset their emissions by investing in projects that reduce greenhouse gases elsewhere, rather than directly tackling their own emissions. This can create a moral hazard, where companies prioritise offsets over actually reducing their own emissions, leading to an overall increase in emissions.
Addressing climate change requires systemic changes to our energy systems, transportation infrastructure and industrial processes. Carbon credits can be a helpful tool in the transition, but they cannot replace the need for fundamental changes in the way we live and produce.
While they provide hope, they also carry potential pitfalls. By advocating openness, holding businesses responsible and emphasising real emission reductions, there is potential to transform this market into an authentic force for addressing climate change rather than a deceptive tactic for appearing environmentally conscious.
Ben Chester Cheong is a doctoral researcher in sustainability law at Cambridge University, a corporate regulatory compliance lawyer at RHTLaw Asia and a law lecturer at Singapore University of Social Sciences.