Thailand Rolls Out Phase 2 of Aid Program to Shore Up Consumer Spending

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas revealed on September 26, 2025 in an interview that the Thai Help Thai Plus 60/40 phase two programme stems from the Middle East crisis, which has driven up living costs for Thai citizens through rising oil prices and inflated goods. As incomes failed to keep pace with expenses, the government designed measures to reduce the cost of living while supporting small merchants affected by weakened consumer demand.

Ekniti stated the programme caps daily spending at 200 baht, aimed at helping everyday expenses rather than encouraging wasteful consumption. With limited government resources, priority goes to small traders, market vendors, street stalls, and small shops. Over three months, approximately 26 million citizens have used the benefit, with around 1.2 million small shops generating over 160,000 billion baht in purchasing support. Only 16 percent of participating shops are in Bangkok, showing funds are distributed nationwide.

The "plus" component extends beyond subsidy to skills enhancement, offering small traders access to food delivery platforms and online selling training. Some participating shops have seen significant increases in online sales, while others have maintained revenue even after the measure ended. The programme also includes AI Whisper Bird in the Thangnang mobile app, which analyzes sales patterns, peak selling days, and raw material costs to help small business owners reduce expenses and manage inventory more effectively. This sales data also improves access to credit, as banks can review income records, with small business credit guarantors providing additional security.

Ekniti stressed that cash injection is not a sustainable long-term solution. The government did not divert energy transition funds to extend the aid because it must maintain fiscal discipline. He explained that assistance is necessary because Thailand's energy transition remains slow amid ongoing regional conflict. Long-term strategy focuses on reducing import dependency through solar energy, allowing households to generate electricity and lower power bills independently, thereby reducing the need for living cost subsidies while cutting import spending.

The energy transition also includes promoting biodiesel from palm oil and ethanol from sugarcane and cassava—domestic crops that reduce oil imports while returning income to farmers and the domestic economy. Temporary oil price subsidies provide only short-term relief; the long-term approach should incentivize alternative energy sources that Thailand can produce domestically.