BANGKOK: Thailand’s newly-appointed Prime Minister, Srettha Thavisin, has taken on the additional role of finance minister in a cabinet that received royal endorsement as he endeavors to address economic concerns in Southeast Asia’s second-largest economy. The move comes as Thailand grapples with sluggish economic growth stemming from weaker exports and investments, prompting concerns that the full-year growth forecast of 3.6 percent, as projected by the central bank, may need to be revised downward.
Reviving Thailand’s economy is poised to be one of the central tasks facing Srettha, who, as a political newcomer, assumed the role of prime minister last month, ending a period of prolonged uncertainty that followed the May election.
The composition of the new cabinet, disclosed in a royal gazette and officially endorsed by King Maha Vajiralongkorn, features key members from Srettha’s Pheu Thai party, which enjoys the support of the billionaire Shinawatra family. The party will oversee crucial portfolios, including defense, transport, commerce, health, and foreign affairs.
This announcement follows Srettha’s ascent to power and the dramatic return of Thaksin Shinawatra, the figurehead of Pheu Thai, who had been living in self-exile abroad for 15 years to avoid an eight-year prison sentence. Thaksin’s return led to his hospitalization due to chest pains and high blood pressure, culminating in a request for a royal pardon. Subsequently, the king commuted his sentence to one year, citing loyalty to the monarchy and health concerns.
Challenges for Prime Minister Srettha
Pheu Thai’s control over key economic ministries is expected to be instrumental in implementing its policies, including the distribution of a 10,000 baht (approximately US$285.63) digital currency handout.
Bhumjaithai, Pheu Thai’s largest coalition partner, known for advocating medical cannabis use, will oversee the education, interior, and labor ministries. Conservative and pro-military parties will lead the energy and environment portfolios, with Police General Patcharawat Wongsuwan, brother of ex-army chief Prawit Wongsuwon, who played a significant role in the 2014 coup, appointed as the minister of natural resources and environment.
Political analyst Yuttaporn Issarachai noted that the royal command marked a significant step toward forming a new government. “The new cabinet needs to take an oath of allegiance before the king, and declare their policies in the parliament. Then, it will be considered fully-functioned,” Yuttaporn said.
However, some critics have raised concerns about the resemblance between the new cabinet and its predecessor, suggesting that it largely reflects the outcome of forming a government with rival parties.
Prime Minister Srettha and his cabinet of 33 ministers are set to take an oath before an audience with the king and deliver a policy statement in parliament as they commence their duties later this month. Srettha has indicated that the first cabinet meeting will address cost-of-living issues by considering reductions in electricity and gas prices and relaxing visa entry rules for Chinese tourists to stimulate tourism.
