What do Pacific people really think of China?

China has been steadily increasing its footprint in the Pacific in recent years as it attempts to deepen its influence and challenge the traditionally strong relationships many countries have with the US and Australia.

But what do people in the Pacific think of China’s expanding interest and engagement in the region?

To find out, we conducted surveys with local residents in two countries where China has focused its outreach in recent years – Papua New Guinea and Solomon Islands. Both countries have embraced a foreign policy professing to be a “friend to all and enemy to none.”

PNG is China’s principal diplomatic and trading partner in the region. Prime Minister James Marape just concluded a visit to Beijing where he and Chinese leaders discussed deepening their economic and security ties, including possibly establishing a common currency trading arrangement.

Solomon Islands’ relationship with China, meanwhile, has boomed since it abandoned its diplomatic recognition of Taiwan in September 2019. China has made huge efforts to promote cooperation with Prime Minister Manasseh Sogavare’s government on aid, trade, agriculture, health, fisheries and policing cooperation.

Beijing intends to develop this partnership to serve as a role model for other Pacific Island nations that still recognize Taiwan.

While the PNG and Solomon Islands governments welcome China’s growing engagement with their countries, however, our research found this wasn’t always the case with the local populations.

Environmental pollution concerns

Our first survey sought to gauge the corporate social responsibilities of the China-owned Ramu NiCo project in Papua New Guinea through the eyes of those who are currently living or have lived in Madang Province, where it’s located.

We collected 100 responses in total, mainly from current and former Divine Word University students and staff.

In 2019, the nickel mine operator had to apologize for accidentally spilling some 200,000 liters of toxic slurry into a bay in the province. The vast majority (98%) of our respondents said they were concerned about environmental pollution, while nearly 60% thought the mine project has not benefited PNG.

In response to the question, “Looking back, do you support the [previous] government’s approval of the China-owned Ramu NiCo project”, nearly 70% said “no.”

However, those living in the area of the mining lease tended to have a more positive view of the venture because of the direct financial benefit they receive in the form of royalties or ancillary businesses.

And 72% of our participants said they support the PNG government developing a closer relationship with China.

The second survey (conducted by Denghua Zhang and Jeffers Teargun Heptol) asked 78 PNG students who had received Chinese government scholarships for their perceptions on the program and Chinese soft power, more generally.

A large majority of respondents (87%) said they would recommend the program to their friends. Studying in China also appeared to change their impressions of the country itself.

Before these students went to China, they were asked to score the Chinese political system on a scale of one to five (from a very low impression to very high), as compared to political systems in Western countries.

The students gave China’s system an average score of 3.45 out of five before their study abroad. After they started the program and lived in China for some time, this average score increased to 4.01.

The scholarship program also changed their views about China’s environmental sustainability from an average score of 3.17 before they went to China to 3.73 after they arrived. Similarly, the students’ average score for China’s foreign policy was boosted from 3.47 to 3.80.

‘Very helpful in building our roads’

For the third survey (conducted by Denghua Zhang and Lincy Pendeverana), we canvassed 93 students from Solomon Islands National University on their views of China and more traditional Pacific partners like the US and Australia.

Two-thirds of our respondents were supportive of a closer bilateral relationship between China and Solomon Islands, but support for a closer relationship with the US was even higher (76%).

Nearly four-fifths of these students also supported China’s Belt and Road projects in Solomon Islands. One participant wrote, “they are very helpful in building and upgrading our roads.”

The other fifth, however, had a more negative view. For example, one student said, “their purpose is to create a debt risk for our government and that leads the Chinese to control the whole of our resources”.

Another student commented, “for a country like Solomon Islands with a weak economy, this Belt and Road project will be a debt trap.”

While some of the students we surveyed in PNG and the Solomon Islands think positively of China, the views of non-governmental organizations in the Pacific can be less rosy.

For example, another survey of 57 NGOs in PNG, Fiji and Tonga conducted in 2021 by Denghua Zhang (one of the authors) found that a majority in each country disapproved of China’s Belt and Road Initiative.

Their concerns included human rights violations, bad governance, debt risks, environmental pollution and an influx of small Chinese businesses and low-quality goods into their countries. For example, one Fijian NGO representative said, “feels that Fiji can go down the same path as Sri Lanka with their port example.”

Our new surveys paint a more mixed picture of local feelings in the Pacific about China. Our participants did not simply “love China” or “hate China”, but had far more complicated, nuanced perceptions of the country.

This is often not represented in media reports on China’s influence in the region, but is important for policymakers in the US and Australia to understand as they seek to counter moves by China to deepen its relationships here.

Denghua Zhang is research fellow, Australian National University and Bernard Yegiora, Lecturer, Divine Word University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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B10k plan faces war of words

B500bn loan hard to justify, critics say

B10k plan faces war of words
Prime Minister Srettha Thavisin explains criteria for the government’s 10,000-baht digital wallet handout during a press conference at Government House on Friday. (Photo: Chanat Katanyu)

A war of words between the Pheu Thai Party-led government and the main opposition Move Forward Party (MFP) over the controversial digital money handout scheme raged on Sunday, as more critics lined up to express their disagreement with the Pheu Thai’s flagship policy.

MFP deputy leader Sirikanya Tansakun on Sunday responded to Adisorn Piengkes, a Pheu Thai list-MP and chief government whip who challenged her to wager her political career on the outcome of the handout scheme.

Mr Adisorn’s reaction was “ridiculous”, she said, and dodged critics’ questions about the scheme.

She said she was still waiting for a response to her concerns, which included how the government’s proposed 500-billion-baht loan bill to fund the sceheme would be justified as urgent, a prerequisite to getting the bill passed and avoiding possible legal challenges.

The previous Pheu Thai-led government’s 2-trillion-baht loan bill was rejected on the ground it was not urgently needed, and Pheu Thai is well aware of that mistake, yet it is still tempted to repeat it, she said.

Ms Sirikanya’s initial remarks against the scheme came on Friday after Prime Minister Srettha Thavisin announced details of its implementation.

He responded on X, saying she should stop misleading the public.

Pheu Thai on Saturday also came out to defend the scheme, saying the need to stimulate the grassroots economy was indeed considered “urgent” and crucial.

In another development, Nonarit Bisonyabut, a senior researcher at Thailand Development Research Institute (TDRI), which focuses on Thailand’s social and economic development, expressed concern over the possibility the scheme could result in more financial risks that could jeopardise the country’s credit ratings.

Currently, Thailand’s public debt accounts for 60% of GDP, exceeding the maximum level recommended for good financial and budgetary discipline, he said.

In a worst-case scenario the digital wallet doesn’t meet its economic stimulation target amid a new economic crisis, Thailand won’t have sufficient so-called “financial bullets” to handle it, he said.

Citing his own projection of the digital wallet scheme’s ability to circulate money, he said the increase in money circulation would not be effective.

“The economy is recovering well and there is no need for the government to borrow such a substantial amount of money to be injected into the economic system,” he said.

Tanit Sorat, vice-chairman of the Employers’ Confederation of Thai Trade and Industry, also expressed concerns about an even smaller gap between the country’s level of public debt and the public debt ceiling, which is 70% of the GDP, when 500 billion baht is borrowed.

The current proportion of public debt to GDP stands at 62%, which would rise to 64% when the 500 billion baht is borrowed, he said, adding Thailand will then have to struggle to find the money to repay the debt for four years.

Five hundred billion baht is equivalent to 2.9% of GDP, while the digital wallet scheme is expected to drive the economic growth up by about 1% through household spending, Mr Tanit said.

All in all, he said, the scheme could do more harm than good, which explains why the Bank of Thailand, National Economic and Social Development Council and Council of State have all insisted they couldn’t agree with this project, he said.

Acting Democrat Party leader Jurin Laksanawisit also slammed Mr Srettha for insisting on borrowing money to fund the scheme, saying the government has begun to lose credibility.

“Be warned, this could be the beginning of a road to ‘credibility bankruptcy’,” he said. “Whatever the government will say next, no one will ever again believe it.”

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WeWork bankruptcy: Is there still demand for co-working spaces in Singapore?

SINGAPORE: Although WeWork has filed for bankruptcy in the United States, demand for co-working spaces remains strong in Singapore, analysts told CNA.

The SoftBank Group-backed startup, which sought US bankruptcy protection on Monday (Nov 6), said it has entered into a restructuring agreement with key stakeholders to drastically reduce its existing funded debt. It also intends to file similar proceedings in Canada.

The company’s locations outside of the US and Canada, as well as its franchisees around the world, are not affected by these proceedings, it added.

A spokesman for WeWork Singapore said it is “business as usual” and that customers can continue using its 14 offices here. 

WeWork first opened its doors in Singapore in 2017. Last September, it opened its 14th outlet in the country at 21 Collyer Quay near Raffles Place – WeWork’s largest location in Asia Pacific at over 220,000 sq ft.

Noting that WeWork Singapore’s operations are not likely to be affected by the bankruptcy, real estate analysts CNA spoke to also highlighted that the demand for co-working spaces in Singapore is “very strong”.

Some co-working operators are seeing occupancy rates between 90 and 100 per cent, and are looking to expand especially in the city centre, said Huttons Asia’s senior director for data analytics Lee Sze Teck.

Mr Alan Cheong, executive director of research and consultancy at Savills, highlighted that furnished spaces occupied by WeWork would find “ready takers” to fill the spot. These may be co-working entities formed by building owners where WeWork is located or competitors stepping up as substitute operators.

Only unfitted office space without furnishing and locations that are performing below the margin are likely to be negatively affected by the bankruptcy. 

“Co-working has a place in the new workplace arrangement. With WeWork out of the picture, the competition is reduced, making it easier for others with the same business model to restructure for another fighting chance in the game,” said Mr Cheong.

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Govt hits back at cash scheme slurs

MFP playing politics, PM says

The government has hit back at the opposition Move Forward Party (MFP) over claims that no one is likely to receive its 10,000 baht digital money giveaway as details of the scheme announced on Friday show the government is merely trying to back out of its handout promise.

“Don’t expect others to always be just as you think they are. Don’t politicise the government’s honest intention and determination to improve the living standard of people, and stop confusing the public,” Prime Minister Srettha Thavisin responded on X to criticism by MFP deputy leader Sirikanya Tansakun.

The government said it would seek to pass a bill allowing it to borrow 500 billion baht to fund the scheme. However, Ms Sirikanya said she thought authorities would find the bill unconstitutional and contrary to financial and budgetary discipline law. The measure wasn’t urgent enough for the government to justify borrowing such a substantial amount of money, she said.

Pheu Thai Party spokesman Danuporn Punnakan yesterday stressed the government’s need to stimulate the economy by injecting money into the system to encourage spending at the grassroots level. The handout will cover people who are 16 years of age and older and who earn no more than 70,000 baht a month and with less than 500,000 baht in deposits in their bank accounts.

The government estimates there are around 4.8 million people who either earn more than 70,000 baht a month or have more than 500,000 baht in their savings accounts, leaving around 50 million people eligible for the handout. Previously there were estimated to around 54.8 people eligible.

Unlike Ms Sirikanya, the government sees the need to stimulate the economy as an urgent matter, especially now that buying power among the grassroots is low. The money which will be injected through the handout scheme will be distributed fairly to the grassroots, not to certain groups as some sides claimed, Mr Danuporn said.

“The MFP might not see this as an urgent need. But we, Pheu Thai MPs, are well aware that those people are having difficulties. And what the government is trying to do is raise public confidence, which is important for economic stimulation,” he said.

As for concerns over financial and budgetary discipline, the government isn’t working alone on this project, with the National Economic and Social Development Council and the Bank of Thailand supervising it. Various views were taken into account when the government revised its project before details were announced on Friday, he said.

They included calls to expand the area in which the digital money can be spent, which was initially set to be in a 4km radius only, and suggestions that the Paotang app should be used instead of developing a new digital wallet app, he said.

Political activist Srisuwan Janya, meanwhile, vowed to petition the Ombudsman to seek a ruling by the Constitutional Court on whether the government’s plan to pass a borrowing bill to fund the handout scheme is constitutional and in line with financial and budgetary discipline or not. Unlike in the past when the government borrowed extra money to fund its handling of the Covid-19 pandemic and its economic impact, this policy could not be considered urgent, he said.

Pheu Thai will lose its power to negotiate with its coalition parties as soon as it submits the bill for deliberation as there will only be two options left if the bill is voted down — the PM will have to resign or call the dissolution of the House, said Somchai Srisutthiyakorn, a former election commissioner.

Niwatchai Kasemmongkol, secretary-general of the National Anti-Corruption Commission (NACC), said the NACC will ask the government for detailed information about the scheme.

The public appears divided over the scheme. Among those who said they couldn’t agree, Wandi Khaosanit, 60, an online lottery vendor in Chai Nat, said not all people who have more than 500,000 baht in their accounts are rich as the money could be the only asset they have saved their whole lives.

Somkit Didaeng, 56, a bamboo shoot seller in the province, said she didn’t like the fact that the digital money can’t be used to repay a debt. Many vendors in the northeastern province of Khon Kaen, meanwhile, backed the project, even though they, too, were somewhat concerned about the financial burden the country will have bear as a result of the borrowing.

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End to decoupling tops China’s pre-summit demands

Ahead of a summit in San Francisco next week, Beijing has urged Washington to take immediate actions to stop US decoupling from China, .

Yuyuan Tantian, a social media account of the China Central Television (CCTV), said in a commentary that the US has been trying to decouple from China in the name of “de-risking,” “friend-shoring” and “safeguarding national security.”

“Friend-shoring” refers to the United States’ strategy of encouraging its firms to place orders in like-minded countries so manufacturers will have an incentive to move from China to these places.

That’s an issue that the US side was expecting to come up. “The US has no desire to decouple from China,” US Treasury Secretary Janet Yellen said in an opening remark during a meeting with Chinese Vice Premier He Lifeng in San Francisco on Thursday. 

“A full separation of our economies would be economically disastrous for both our countries, and for the world,” Yellen said. “We seek a healthy economic relationship with China that benefits both countries over time.”

“Beyond our bilateral economic relationship, I look forward to discussing our collaboration on global challenges, from climate change to debt distress in low-income countries and emerging markets,” she said. “As the world’s two largest economies, we have an obligation to lead on these and other issues, for the people in our countries and around the world.”

The Chinese commentary raised, besides decoupling/friendshoring, five additional concerns:

  • the United States’s generalization of “national security” as a justification for changing the rules of commerce,
  • chip export controls,
  • allegedly unfair treatment of Chinese firms in the US,
  • a “smear” campaign against China’s business environment and
  • US criticism that China has set up “debt traps” in developing countries.

The social media account is seen as authoritative as it has access to China’s high-level diplomatic information, including the dialogue during a 90-minute phone call between Chinese President Xi Jinping and US President Joe Biden on September 10, 2021. 

Vice-Premier He said his previous discussions with Yellen has been constructive so both sides will look into more economic and financial topics of China and the US. He said he hopes to use this chance to raise some issues that concerned China the most. 

He did not disclose what issues he would raise in his meetings with Yellen on Thursday and Friday. The six concerns mentioned in Yuyuan Tantian’s article are apparently meant to reveal what He would have said if he had listed them.

Five demands vs six concerns

Back in July Yellen met with He during her four-day trip to China. After their meeting, the Chinese Finance Ministry said in a statement that the China side had made five demands to the US side.

US Treasury Secretary Janet Yellen meets with Chinese Vice Premier He LIfeng in Beijing last July. Photo: Xinhua

It said Beijing was concerned by the extra tariffs, company sanctions, investment restrictions, export controls and Xinjiang product bans imposed by the US on China in recent years. 

Yuyuan Tantian’s latest article, with the title “A new round of China-US dialogues begin,” elaborated these points and stretched them out into six concerns.  

According to the self-description, the author of “Yuyuan Tantian” is a woman, an “experienced political and economic news reporter,” who has a PhD in Economics. 

“Since the Biden administration took office, the terminology of China’s economic policy has been changing, from ‘decoupling’ to ‘recoupling’ to ‘competition,’ from small yard, high fence’ to’ ‘de-risking’ to ‘friend-shoring,’” she said in the article. “No matter how, they still refer to the so-called security issues.”

She added: “In its economic exchanges with China, the US has long generalized and abused the term ‘national security.’ Behind this, the United States’s hegemonic thinking is still at work.”

She said that the “friend-shoring” strategy, which is no different from “decoupling,” allowed China to ship more solar panels to Southeast Asia and auto parts to Mexico in recent years. 

“The US wanted to exclude China from the global industrial and supply chain system. But its actions helped deepen the relationship between China and other countries,” she wrote. 

On October 17, the US Department of Commerce banned Nvidia from shipping its A800 and H800 graphic chips, which can be used to develop artificial intelligence, to China. China’s orders involving US$5 billion of Nvidia chips have then been canceled.

Yuyuan Tantian saidd the US government not only failed to protect its own companies’ interests in China but also used untransparent and unfair administrative means to restrict Chinese firms from raising funds and operating in the US. 

“The US side has so far added 1,300 Chinese firms to its entity list,” she said. “If it wants to work with China, it must trim this list.”

She added that it was wrong for US Commerce Secretary Gina Raimondo to have said in August that China is “uninvestable.” She said China will continue to open up its economy while American firms must grab the opportunity to invest in it.

She also criticized the US and its allies for promoting the narrative that China’s overseas investments created “debt traps” for developing countries.

It’s official

After Yellen reiterated on Thursday that the US won’t decouple from China, Foreign Ministry Spokesperson Hua Chunying officially announced on Friday that Xi will be in San Francisco from November 14 to 17 for a China-US summit meeting and the 30th APEC Economic Leaders’ Meeting.

The Xi-Biden meeting is expected to be held on November 15, Kyodo News reported on Wednesday. 

Read: Luring investment a high priority for Xi’s US trip

Follow Jeff Pao on Twitter at @jeffpao3

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‘Too early to judge govt’: DPM

'Too early to judge govt': DPM
Phumtham: ‘100 is the magic number’

Deputy Prime Minister Phumtham Wechayachai hit back at criticism that the government’s first 60 days in office had seen little improvement in the economy or helped reduce the cost of living.

Mr Phumtham said the government’s work won’t take shape until after at least 100 days have passed as many ministries like the Commerce Ministry, which he heads, are working on many projects that are still to be revealed to the public, such as fixing the high prices of certain everyday items and expanding markets for local products to more foreign countries.

Prime Minister Srettha Thavisin has also used every opportunity on the world stage to attract foreign investors, he said, adding that on Tuesday, the premier will have a meeting with Thai commercial attaches and the Board of Investment to promote Thailand among foreign investors, he said.

“So, I’d like everyone and also those who criticise us to be patient. We will provide a full update on our work and plans when we have completed 100 days in office,” he said.

Asked if the prime minister preferred to work alone rather than delegate duties, Mr Phumtham said the prime minister has already assigned a full set of responsibilities to his six deputies. Every minister also has a lot of work to deal with.

As the economy has suffered a cumulative crisis globally and financially, many things are in process to restore the economy, he said.

“Therefore, it is a good thing for the premier to explain everything thoroughly. Actually, we want to have around 50-100 cabinet members instead of 36 due to high work loads at present, but we are ready to work hard and to face any obstacle,” said Mr Phumtham. “The premier also often travels to provinces to directly find out about the problems people face.”

When asked about comments made by opposition parties, Mr Phumtham shrugged of the criticism as predictable.

“I always tell the opposition parties that if policies are good for the people, they will be implemented. Not every move is for political benefit. I do not mind feedback or criticism as long as they are creative because they are like a mirror for us,” he said.

“It is not the critics but the people who will tell us whether the government has passed the test,” he added.

On Thursday evening, Prime Minister Srettha hosted a television special titled “From Policy to Action in 60 Days”. During the show, the premier highlighted urgent measures implemented during this period, such as reducing expenses for people including reducing electric bills, and petrol prices and fixing household debt.

The premier said the government is also promoting the agricultural sector with a plan to expand markets to Africa and the Middle East and the tourism industry too with its new round of visa exemptions.

“The government is also investing heavily in logistics and infrastructure, including transport links such as high-speed rail and upgrades to the facilities of major airports,” he said.

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Govt plans to seek B500bn loan

PM insists handout will boost economy

Govt plans to seek B500bn loan
Prime Minister Srettha Thavisin on Friday put an end to weeks of speculation about the government’s digital wallet programme, saying it will begin in May next year. Some 50 million people aged 16 and older will be eligible for a 10,000-baht handout so long as they have an income of less than 70,000 baht per month and less than 500,000 baht in bank deposits. He made the announcement at Government House. (Photo: Chanat Katanyu)

The government will seek 500 billion baht in loans to finance its 10,000-baht digital money handout scheme, Prime Minister Srettha Thavisin said on Friday.

The digital currency will be offered to Thais aged 16 and older who earn less than 70,000 baht per month and have under 500,000 baht in bank deposits, he said.

Based on these criteria, an estimated 50 million people will be eligible — down from the 56 million intended originally.

People who earn more than 70,000 baht a month but have less than 500,000 baht in bank deposits will not be eligible. The same applies to those who earn less than 70,000 baht a month yet have over 500,000 baht in their accounts.

Mr Srettha made the remarks at a press conference during which he outlined details of the scheme after chairing a meeting of the digital wallet policy committee.

He said the economy is in need of a major stimulus as Thailand’s GDP has grown by only 1.9% a year on average over the past decade, with household debt jumping from 76% in 2012 to 91.6% this year.

The output from the manufacturing sector has also declined, which means fewer workers are required, resulting in many people being laid off.

“As a result, they earn less and buy less, which in turn causes factories to cut production. And this cycle repeats, causing a recession. Things will get worse unless the economy gets a boost,” Mr Srettha said.

He said the government will inject 600 billion baht into the economy — 500 billion via the digital wallet scheme as well as a 100-billion-baht fund to enhance the country’s economic potential.

The digital wallet policy is intended to inject cash flow into the economic system to boost spending during the six-month period after its launch.

The handout will begin next May, three months later than planned.

“The project will spur investment, encourage trade and the sale and purchase of goods, and orders for goods will be placed with SMEs and large factories,” the prime minister said.

The money can only be used to buy food and consumer goods. It cannot be used to purchase goods online, cigarettes or liquor; cash vouchers and such valuables as diamonds, gems or gold; and it cannot be used to pay off debts or cover water or electricity bills, fuel, natural gas or tuition fees.

Participating shops do not have to be in the tax system or register for VAT, the prime minister said.

The new 100-billion-baht fund, meanwhile, will be used to enhance the country’s competitiveness in various fields, said Mr Srettha. This could include investing in new technologies and the development of human resources. It is intended to draw highly competent people in various fields to contribute to economic growth.

“I would like to emphasise that this (digital money handout scheme) is not a form of welfare to help the needy. Rather, it is about injecting money into the economy through spending to enable people to be partners with the government in reviving the economy,” the prime minister said.

As for the source of funding for the programme, Mr Srettha said the most practical approach would be for the government to propose a bill seeking a special loan of 500 billion baht.

The draft bill will be sent to the Council of State this year to ensure it does not contravene any laws. It will be forwarded to parliament early next year, he said.

Mr Srettha said the bill would be passed by parliament in line with Section 53 of the State Fiscal and Financial Discipline Act of 2018 so the programme can start in May.

The other 100 billion baht for economic projects will come from state budgets, he said.

Sirikanya Tansakun, a deputy leader of the opposition Move Forward Party, said the government has no other options.

There is a risk someone may ask the Constitutional Court to rule against the bill on the grounds that there is no justification for an urgent handout, she said.

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Analysis: Thai govt facing criticisms for being ‘amateur’ in handling hostage crisis amid Israel-Hamas war

POVERTY BACK HOME FORCES THAI WORKERS TO RISK THEIR LIVES ABROAD

Despite possible dangers in Israel, a Thai worker who wishes to be known as Nick for fear of repercussions on his job, has chosen to stay on and continue working there.

The 33-year-old father-of-two works eight to 10 hours a day at a farm near the Ben Gurion International Airport in Tel Aviv, earning between 45,000 and 70,000 baht a month – compared to less than 100,000 baht in a year from farming in Thailand. 

The new job is a rare opportunity for him to transform his life.

“I had never earned so much money from farming,” Nick told CNA.

Over the past month, he has grown used to harvesting chilies and bell peppers amid airstrikes. Sometimes, he would see rockets explode in the sky. Yet, he believes the area where he works is “still safe” and as a result, there is no need to go home.

What is more important is his family in Roi Et, northeastern Thailand. Nick said his overseas stint only began in March this year and if he returns home, a poor man like him would not be able to find a job that pays 70,000 baht a month.

“I want my family to be comfortable and pay off all the debts. I want life to be better,” he added. 

In Khon Kaen, Ms Boonyarin continues to wait for more news about her missing daughter, Yo. 

Four years ago, debt and poverty made Yo decide to leave home and her two young children for a career opportunity in Israel, where she worked in a potato packaging plant not too far from the Gaza Strip.

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Digital wallet to start in May, says PM

Srettha clarifies conditions and funding sources, says 50 million people will be eligible for B10,000 handout

Digital wallet to start in May, says PM
Prime Minister Srettha Thavisin explains the criteria for the government’s 10,000-baht digital wallet handout during a press conference at Government House on Friday. (Photo: Government House)

Prime Minister Srettha Thavisin on Friday put an end to weeks of speculation about the government’s digital wallet programme, saying it will begin in May and some 50 million people will be eligible for a 10,000-baht handout.

All told, the government will inject 600 billion baht into the economy — 500 billion via the digital wallet scheme and another 100-billion-baht fund to enhance the country’s economic potential, Mr Srettha said at a press conference that was televised nationwide.

The government will give 10,000 baht in digital money to every Thai aged 16 and older, as long as they have an income of less than 70,000 baht per month and less than 500,000 baht in bank deposits. Based on these criteria, an estimated 50 million people will be eligible — down from the 56 million intended originally.

People who earn more than 70,000 baht a month but have less than 500,000 baht in bank deposits, as well as those who earn less than 70,000 baht a month but have more than 500,000 baht in the bank will not be eligible.

Mr Srettha has said the cash handout “will act as a trigger to revitalise the economy”, which has grown by less than 2% per year on average in the past decade, among the weakest in Southeast Asia.

Under the programme, 10,000 baht in digital money will be transferred into a digital wallet on the Pao Tang mobile app, which is already used by millions of people. The transfers will begin in May, three months later than previously planned.

The money must be spent within six months in the district where the recipient’s home is registered. It cannot be transferred to other people or converted into cash.

The handout can be used to buy food and consumer goods only. It cannot be used to buy goods online, cigarettes or liquor; cash vouchers and such valuables as diamonds, gems or gold; and cannot be used to pay off debts or pay for water or electricity bills, fuel, natural gas or tuition fees.

Shops are required to register to join the programme and they must be in the tax system.

The new 100-billion-baht fund, meanwhile, will be used to enhance the country’s competitiveness in various fields, said Mr Srettha. This could include investing in new technologies and development of human resources. The fund is intended to draw people with capabilities in various fields to join in building economic growth.

“I would like to emphasise that this (digital money handout) is not welfare to help the needy, but it is about injecting money into the economy through spending rights to enable people to be partners with the government in reviving the country’s economy while maintaining the state’s fiscal discipline in all aspects,” the prime minister said.

“I want all people who are entitled for it to spend it with pride. Everyone is a contributor to the economic growth and stability of our country.”

The source of funding for the programme has been the subject of heated debate, with critics saying that borrowing would push up public debt to an unsustainable level.

However, Mr Srettha said the most practical approach for the government is to propose a bill to seek a special loan of 500 billion baht. The draft bill will go to the Council of State by the end of this year to make sure it does not contravene any laws and will be forwarded to parliament for debate early next year.

The 11-party coalition led by the Pheu Thai Party has a comfortable majority in parliament and no parties in the coalition oppose the digital wallet programme, according to local media reports.

Mr Srettha expressed confidence that the bill would be passed by parliament in line with Section 53 of the State Fiscal and Financial Discipline Act of 2018, so that the programme can start next May.

The other 100 billion baht for economic enhancement projects would be from state budgets, he said.

Prime Minister Srettha Thavisin tells the public that some 50 million Thais aged over 16 will receive 10,000 baht in digital money. Recipients must earn less than 70,000 baht per month and have less than 500,000 baht in bank deposits. (Photo: Government House)

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