Thailand Approves THB175 Billion Stimulus Measure, Lifting Sentiment for Domestic Stocks

The Thai Cabinet has approved the “Thai Helps Thai Plus” program (formerly known as Half-Half scheme), allocating a 175-billion-baht budget to stimulate domestic consumption, according to strategists at leading securities firms. Krungsri Securities, seeing a slight positive view on the approval, noted that the spending package is marginally larger than previously expected, representing approximately 0.9% of Thailand’s GDP for 2026. Krungsri Securities commented that the sizable outlay is likely to provide a mild boost to the SET Index. The package should offer an upside for GDP growth, especially in the second and third quarters of 2026, as the negative impact of high energy prices has already been priced in by the market. This positive outlook could prompt analysts to revise up their GDP forecasts, which would be supportive for the SET Index in the next phase. Strategists believe that stocks linked to domestic consumption—such as banking, retail, consumer products, and hire-purchase/finance sectors—are set to benefit the most. Krungsri Securities identified specific beneficiaries: banks like KTB and KBANK; retailers such as CPALL, CPAXT, BJC, TNP, and CPN; consumer goods firms including ICHI and NEO; and hire-purchase companies, especially those like JMT, which has already rebounded from its trough, and the resilient KTC. These names were highlighted as top picks, with expectations for continued speculative buying in these sectors through the afternoon session. Meanwhile, Finansia Syrus Securities also confirmed the program’s approval, noting that the scheme will reach over 43 million people. Beneficiaries include 13.18 million state welfare cardholders, who will receive 1,000 baht per person per month, and the general population, who can participate in a 60-40 co-payment program—where the state subsidizes 60% and the individual pays 40%, receiving up to 1,000 baht per person per month for a maximum of four months. Registration for the program will be open from May 25–29, and spending can begin between June 1 and September 30, 2026. While Finansia Syrus sees the impact as neutral-to-mildly-positive (sentiment already being priced in by the market), it still expects a supportive effect for retail, food, beverage, and finance sector stocks. Companies likely to benefit include CPAXT, CPALL, OSP, CBG, ICHI, NEO, TIDLOR, MTC, and SAWAD. Finansia Syrus emphasized the need to monitor further developments, particularly the Cabinet’s explanation to the Constitutional Court and the Court’s upcoming deliberations in June, which could affect the implementation or scope of the stimulus package.