BANGKOK: In a much-anticipated inaugural speech to Parliament, Thailand’s new Prime Minister, Srettha Thavisin, wasted no time in addressing the pressing economic challenges facing the nation. His ascension to the role comes after four months of political uncertainty and deadlock in Parliament, during which lawmakers struggled to form a government. Srettha, a former major real estate developer turned politician, now finds himself at the helm of a nation with high expectations and numerous issues to tackle over his four-year term.
One of the most immediate and formidable challenges confronting Thailand is the economic fallout from the COVID-19 pandemic, which severely impacted the country’s lucrative tourism industry. As a result, public debt soared to over 60% of GDP in 2023, with household debt reaching a staggering 90% of GDP. In his address, Prime Minister Srettha likened Thailand’s post-pandemic economy to a “sick person” on the brink of recession.
Srettha pledged swift action to address these economic woes, vowing to tackle the mounting debt crisis, address rising energy costs, and revitalize the tourism sector. While he did not delve into specific details, he stressed the urgency of these measures.
A notable highlight from his speech was the commitment to a campaign promise of providing a $280 handout to all Thai citizens aged 16 and older. This stimulus measure aims to boost short-term spending and breathe life into the ailing economy. Although specifics were lacking, Srettha previously estimated the cost to be around $15.8 billion, with plans for implementation in the first quarter of the following year. This promise garnered significant attention during the election campaign, although critics remain skeptical about its long-term effectiveness.
Beyond immediate economic concerns, Prime Minister Srettha outlined a range of long-term goals, including bolstering international trade, supporting start-up businesses, investing in transportation infrastructure, improving agricultural production, empowering local governments, and expanding access to land ownership. These initiatives collectively aim to foster economic growth and enable Thai citizens to “live with dignity,” as Srettha articulated.
Additionally, the government intends to initiate a process to amend the current military-installed constitution, allowing for public participation—a significant step toward addressing concerns about military influence in politics. Thailand’s military has played a substantial role in the country’s politics, staging two coups since 2006. Srettha’s diplomatic approach involves collaborating with the military to end mandatory conscription, reduce the number of generals, and ensure transparency in defense ministry procurement procedures.
Thailand’s recent elections in May marked a call for change after nearly a decade under military rule. However, political manoeuvring in Parliament led to a coalition formed by the progressive Move Forward party, which held the majority of seats, being rejected due to conservative Senate members’ reservations about its proposed monarchy reforms. Srettha’s Pheu Thai party, coming in second place, later formed a broader coalition with pro-military parties, raising doubts about its ability to deliver on campaign promises while accommodating a diverse political spectrum.
