Thailand issues checks to boost economy

BANGKOK – Thailand’s government began handing out $55 checks to millions of low-income workers today to stimulate an economy battered by the global financial crisis.

As the first checks were distributed, thousands of demonstrators converged on Government House, the office of Prime Minister Abhisit Vejjajiva, demanding the resignation of the government and rejecting the scheme as a “buy off.”

The demonstrators, followers of ousted Prime Minister Thaksin Shinawatra, say Abhisit’s government came to power through illegal means. Their earlier demonstrations have proved peaceful.

The so-called “help-the-nation” dole-out scheme targets over 9 million people earning less than $424 a month.

“I am confident it will stimulate the economy,” Abhisit told reporters ahead of the launch of the $509 million program.

Thailand has been hit with the worst economic downturn since the 1997 Asian financial crisis. Southeast Asia’s second largest economy grew 2.6 percent in 2008. But the economy’s performance this year is expected to contract 2.5 percent as the country’s crucial export sector slid four months straight.

Stores and shopping complexes were quick to jump in, hoping to attract check recipients with special deals.

“The check is valued 20 percent higher if you cash it in at our store,” said Chamnan Metapreechakul, senior marketing director for the Mall Group, one of Thailand’s largest mall operators. “We expect people to spend it because it’s not large enough to save.”

Chamnan said the stores have created baskets of products worth $61 for those who do not want to think too much about how to spend their windfall.