BANGKOK – The Thai government’s vaunted policy of giving away 10,000 baht (S$376) to most of its population had an early setback on July 31 when millions rushed to sign up on the opening day and crashed the registration system.

       By early afternoon, 10.5 million people had applied to join the scheme, but millions more could not access the registration portal, with many complaining they did not receive text message passcodes to complete the process.

       The Thai government has bet heavily on its 500 billion baht (S$19 billion) “digital wallet” to stimulate an economy struggling from high household debt and weak spending, but the scheme has been delayed due to uncertainty over funding sources.

       Critics, including respected economists and some former central bank governors, have complained the scheme was short-sighted and fiscally risky, which the Thai government rejects.

       “It’s normal to have problems on the first day, but we are doing our best,” said Thai Prime Minister Srettha Thavisin, the programme’s biggest advocate.

       The Lower House late on July 31 approved an additional 122 billion baht for 2024’s fiscal year to help fund the digital wallet, but Senate backing and royal endorsement are still required.

       The programme will be launched in two months and entails transferring 10,000 baht of credit to users via a smartphone application, to be spent in their localities within six months.

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       Millions of retailers are expected to apply for and join the scheme, from major malls and supermarket chains to noodle vendors and family-run convenience stores.

       The Thai finance ministry expects the economy to grow 2.7 per cent in 2024, supported by tourism and exports, while the Thai government believes the handout programme could add 1.2 percentage points to 1.8 percentage points to growth in 2025.

       Mr Srettha said the policy’s objective was to stimulate regional economic activity, so that it would not be concentrated in cities.

       About half of Thailand’s population live in urban areas, according to the World Bank.

       Of the 50 million people eligible, the Thai government expects 45 million to take it up. Thais who earn more than 840,000 baht per year or have 500,000 baht in their bank accounts are not eligible. REUTERS