Domestic policy
Paetongtarn has overseen the implementation of the 10,000-baht digital wallet scheme, the flagship economic policy of the Pheu Thai Party. The scheme was originally promised during the 2023 election campaign as a one-time universal handout to nearly all Thais aged 16 and over, intended to deliver a large-scale stimulus to the domestic economy. However, since the Paetongtarn government took office, the program has faced significant modifications, delays, and criticism regarding its funding, implementation, and economic necessity.
The initial plan to fund the 500 billion baht scheme through a special loan bill was scrapped due to legal concerns and fears of violating fiscal discipline laws. Instead, the government has relied on the national budget. The universal nature of the handout was also curtailed, with eligibility restrictions introduced to exclude high-income earners (those with an annual income over 840,000 baht) and individuals with more than 500,000 baht in savings.
Phase 1, launched in September 2024, provided 10,000 baht in cash to approximately 14.5 million recipients, including state welfare cardholders and individuals with disabilities. Phase 2, implemented between January and April 2025, extended the cash transfers to an estimated 3 million senior citizens aged 60 and over. The first truly "digital" phase, which was set to target around 2.7 million young people aged 16–20 via a government application, has been indefinitely postponed. In May 2025, the government announced this decision, citing a worsening global economic outlook and the need to reallocate the remaining 157-billion-baht budget to more urgent stimulus measures, such as infrastructure development and tourism promotion. Paetongtarn has publicly insisted that the postponement is not a cancellation and that the government remains committed to fulfilling its promise once economic conditions improve. The policy has been a focal point of her premiership, drawing both support for its potential to aid households and strong criticism from economists for its high cost and debated effectiveness as a stimulus tool.
Paetongtarn Shinawatra has designated tourism as the primary engine for Thailand's economic growth, taking a hands-on role in policy-making and international promotion. Her administration's strategy focuses on elevating Thailand's global image, enhancing tourist safety, and boosting revenue by attracting high-value visitors and establishing the nation as a year-round destination.
A key initiative under her leadership is the "Amazing Thailand Grand Tourism and Sports Year 2025", a year-long campaign of festivals and major sporting events designed to attract visitors. This campaign is part of the broader "Ignite Thailand" vision, which aims to establish the country as a global hub for tourism and other key industries. In early 2025, she personally promoted this vision at international travel forums, such as ITB Berlin, setting an ambitious target of attracting 39 million tourists and generating 3.5 trillion baht in revenue for the year. As of early June 2025, Thailand had welcomed over 15 million international visitors for the year, showing a strong recovery. However, some economic research centers have noted that the ambitious full-year targets may face challenges due to a global economic slowdown and increasing regional competition.
Paetongtarn Shinawatra has adopted the 1-trillion-baht Southern Land Bridge project as a cornerstone of her administration's economic policy, positioning herself as its chief advocate and lead promoter on the international stage. Her role is multifaceted, encompassing policy direction, investment promotion, and stakeholder management for one of Thailand's most ambitious and controversial mega-projects. The project aims to construct a 90-kilometer logistics corridor, including deep-sea ports in Ranong (Andaman Sea) and Chumphon (Gulf of Thailand), linked by a motorway and dual-track railway. This would create a strategic alternative to the congested Strait of Malacca for maritime transport. She has argued that it will reduce shipping times by several days, lower costs by up to 15%, create an estimated 280,000 jobs, and boost GDP growth.
During numerous overseas roadshows and at major domestic events like the "Ignite Thailand" forum in March 2025, she has presented the project as a key opportunity for investment. She has actively courted interest from global players, particularly during her official visit to China in February 2025, and has highlighted investment interest from firms in China, the Middle East (notably Dubai Port World), and financial institutions like the Asian Infrastructure Investment Bank (AIIB).
Under her leadership, the Thai government has advanced plans to legalize casinos as part of a broader initiative to develop large-scale "entertainment complexes". The policy is intended to attract foreign investment, stimulate tourism, create employment opportunities, and formalize Thailand's widespread underground gambling industry to increase government revenue. Paetongtarn has emerged as a prominent proponent of the initiative, presenting it as a strategy to develop "man-made" tourist destinations and enhance the country's global competitiveness. She has publicly argued that the project will stimulate the economy without using taxpayer funds, as the massive investment required (estimated at THB 100 billion per complex) will come from the private sector. The government projects that the complexes could boost GDP, increase tourist arrivals, and generate between 12 and 40 billion baht in annual tax revenue.
In January 2025, the Thai cabinet approved the Entertainment Complex Bill in principle, providing a legal framework for the proposed developments. The bill outlines the creation of multiple integrated resort projects, incorporating five-star hotels, shopping centres, concert venues, theme parks, and other entertainment facilities. The legislation stipulates that casino operations must be limited to no more than 10 per cent of the total floor area of each complex.
The policy has faced opposition from civic and religious groups, who warn of potential negative social consequences such as increased crime and gambling addiction. There is also a citizen-led effort to force a national referendum on the issue. Despite this, the Paetongtarn government continues to push the project forward as a key component of its long-term economic strategy.
Following her June 2025 suspension as prime minister, the future of the legislation was in doubt. Deliberation of the bill was planned to be held on 9 July 2025. However, on 7 July, the bill was withdrawn.
Cannabis had been decriminalised by the Prayut government in 2022, with the move being most supported by the Bhumjaithai Party (BJT) as one of its flagship policies. The Pheu Thai party had run in 2023 on an anti-drug policy and opposed the use of cannabis except for medical use and, under Srettha, had proposed legislation aimed at restricting the use of cannabis. The party's stance on cannabis thus led to tension with the BJT – creating a rift between the two parties which remained in a coalition when Paetongtarn became prime minister.
The Thai government had hoped that decriminalising cannabis would turn it into a cash crop. A lack of laws governing cannabis were blamed for the rise in illegal distribution and the creation of a saturated market. Shortly after becoming prime minister, the Ministry of Public Health proposed a new bill on 12 September 2024 restricting cannabis to medical and research reasons. It also proposed the establishment of a Cannabis Control Board (CCB) to regulate the industry. The bill did not pass and Paetongtarn pledged that the government would not reverse its policy on cannabis again. However, by 2025, tourists smuggling cannabis out from Thailand was on the rise. Somsak Thepsuthin, the Minister of Public Health, listed in May that Hong Kong, India, Pakistan and the United Kingdom were the main destinations. On 22 May, the Paetongtarn government announced it planned to introduce new restrictions limiting cannabis usage to individuals (including foreigners) with medical prescriptions from doctors. Paetongtarn's efforts to restrict cannabis use have contributed to increased tensions with the BJT party.
