Thailand Considers 'Thai-Chai-Thai Plus' Phase 2 Amidst Rising Living Costs

The Thai government is signaling a positive inclination towards extending the 'Thai-Chai-Thai Plus' cost-of-living support program, which is set to expire on September 30. Amidst rising energy prices driven by Middle East conflicts, which are impacting citizens' expenses, the government recognizes the need to continue support through the final quarter of the year (October-December). Prime Minister Srettha Thavisin has instructed Deputy Prime Minister and Finance Minister Anutin Charnvirakul to consider extending the project. Approximately 40-50 billion baht remains in the budget, which could be utilized to alleviate the financial burden on the public. Deputy Prime Minister Anutin noted that many shopkeepers desire an extension of the program. While the remaining funds are deemed sufficient for an extension, close monitoring of global energy price trends is necessary. Discussions are also underway to potentially shift the co-payment ratio from the current 60:40 (government:public) to 50:50 for the second phase, though no definitive conclusion has been reached. In its first three months, 'Thai-Chai-Thai Plus' saw participation from about 1.2 million shops, stimulating over 150 billion baht in economic circulation. Approximately 83-84% of this amount was distributed to provincial areas, demonstrating a degree of economic revitalization. The program has benefited over 40 million users in total, with around 26 million using 'Thai-Chai-Thai Plus' and another 13 million using state welfare cards. Based on these outcomes, the government is proceeding with its consideration for the second phase. Prime Minister Srettha has given his in-principle approval, stating that the project can move forward if the Ministry of Finance deems it appropriate. The government has also indicated that if the initial budget is insufficient, funds from other loan allocations could potentially be utilized, as the royal decree does not prohibit this. The final duration and scale of the extension will depend on the model designed by the Ministry of Finance. Permanent Secretary of Finance Lavaron Sangsnit stated that the committee will hold a two-day meeting this week, and the Ministry of Finance is expected to propose the details of 'Thai-Chai-Thai Plus Phase 2' for consideration. Therefore, while the implementation of 'Thai-Chai-Thai Plus Phase 2' is not yet finalized, the government's in-principle approval indicates a path forward. The Ministry of Finance is tasked with comprehensively evaluating economic conditions, energy prices, and budget constraints to finalize the details before the first phase concludes on September 30.