Bangkok: The Prime Minister explained the issuance of an emergency decree to borrow money to address the energy crisis, focusing on assisting vulnerable groups, farmers, and SMEs. At Government House, Prime Minister Anutin Charnvirakul, along with the Cabinet, announced the Royal Decree authorizing the Ministry of Finance to borrow money to address the impact of the energy crisis and the country's energy transition.
According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that the Prime Minister stated that the government's decision, in the form of a Cabinet resolution, to issue an emergency decree authorizing the Ministry of Finance to borrow money was due to the conflict in the Middle East, which has severely affected energy prices and economic activity worldwide. The crisis began with energy prices, then spread to food prices, and is now putting pressure on the cost of living for people across the country. This is not a normal situation and not one that can be delayed.
The government's duty is to halt the risk of the Thai economy entering a state of stagflation, characterized by high inflation and economic slowdown, in the near future. This must be done promptly. Therefore, it is necessary to use special tools through the issuance of an emergency decree, under the clear legal principle that this is an urgent and unavoidable emergency situation.
The Prime Minister stated that this emergency decree has two clear objectives: to alleviate the impact on the cost of living for the public and to prevent economic activity from stalling, and to accelerate the restructuring of the country's energy sector to reduce vulnerability and create long-term stability. Measures under this emergency decree will directly target key groups, including low- and middle-income earners, farmers, small and medium-sized enterprises (SMEs), and economic sectors directly affected by rising energy costs.
This initiative will be implemented in two parallel directions. First, assistance and relief efforts will focus on reducing the cost of living for the public while simultaneously lowering costs for the production sector, especially agriculture, through the provision of fertilizers and essential production inputs. Second, the restructuring for the transition will use this opportunity to modernize the energy sector, reducing reliance on fossil fuels and ensuring stable and competitive energy costs. This will involve developing human resources in the manufacturing sector to enhance competitiveness in a changing global production landscape.
Based on these principles and rationale, the Royal Decree serves as both a tool to guide the country through the crisis and as a foundation to reduce future economic vulnerability, while maintaining strict fiscal discipline. This approach will not eliminate the global crisis, but it will empower Thai people to better cope with future challenges and support those less fortunate to overcome this crisis together. Furthermore, it will strengthen Thailand and ensure readiness to address future problems. Further details of this Royal Decree will be provided by the Deputy Prime Minister and Minister of Finance at a later date.