Business

Can Thailand’s new PM fix the economy and political woes by January?

By Aidan Jones

Copyright scmp

Can Thailand’s new PM fix the economy and political woes by January?

Thailand’s new prime minister Anutin Charnvirakul presented his policy platform on Monday, with quick-fix measures to ease the rising cost of living as well as promises to win back tourists, while committing to dissolving parliament in just four months to end the country’s political stalemate.
The country’s third prime minister in two years, faces twin challenges: economic woes exacerbated by a stubbornly strong baht and a security threat as the ceasefire with Cambodia threatens to unravel.
Anutin’s already complex task is made more difficult by leading a minority government that only secured opposition support on the condition that he calls new elections.
Speaking to lawmakers, the construction tycoon-turned politician recognised that his time-limited government means he will not be able to address structural issues.
“Four months from now, by January 31, I will dissolve parliament. That’s my commitment under the agreement,” Anutin told the lower chamber. “This is an interim government that has come in to address the damage caused by the previous administration,” including to the economy and “dignity of the nation,” he said.
Instead, Anutin vowed a quick roll-out of a co-payment scheme to subsidise food costs at restaurants, a measure designed to help Thais save money and boost consumption amid slow economic growth.
We must urgently address crises affecting the nation, particularly to the economy, national security, society, and environmental threats
Anutin Charnvirakul, Thai prime minister
“We must urgently address immediate crises affecting the nation, particularly those related to the economy, national security, society, and environmental threats caused by climate change,” he said in an English readout of his comments shared by the Prime Minister’s office.
“The government assumes office at a time when Thailand faces multidimensional uncertainties – economic, social, political, international relations, and global geopolitics. These factors impact national competitiveness, income generation, and business operations,” the statement added.
He also pledged his administration’s support for holding “a referendum and amending the Constitution”, which critics say fatally undermines democracy and was written under a military government, and has led to the revolving door of prime ministers.
To rescue Thailand’s crucial tourism sector, which has declined due to safety concerns about scam gangs and the rising baht, Anutin plans to combat fraud targeting tourists and increase their average spending per visit.

Thailand’s economy poses an immediate challenge, with the World Bank trimming its growth forecast for this year to 1.8 per cent as Washington’s tariffs slow exports in the second half of this year and debt-saddled households spend less.
Further concern arose last week when ratings agency Fitch downgraded the country to a negative outlook, citing factors like “prolonged political uncertainty” and “intensifying demographic pressures” in a rapidly ageing society.
Anutin also has to navigate a volatile security threat posed by a border dispute with Cambodia, where a ceasefire is at risk of unravelling. The conflict has seen deadly clashes and caused border trade to shut down for weeks.
The crisis led to the sacking of Anutin’s predecessor, Paetongtarn Shinawatra, after a call was leaked with Cambodia’s de facto leader, Hun Sen, that showed her attempting to defuse the disputed boundary crisis.

US President Donald Trump claimed credit for ending the violence with a ceasefire in exchange for a reduced 19 per cent tariff rate on exports to America.
But mounting brinkmanship broke out into a skirmish over the weekend between troops on both sides of the border. Each side blames the other for sparking the conflict, which has the potential to flare up at any moment, given the surging nationalism in the two countries.
Anutin, a saxophone player, pilot and collector of vintage cars, also has to steer a government that does not have a clear parliamentary majority.
The new prime minister is reliant on the pro-democracy People’s Party to support his policies in opposition.
But he has already proved to be a canny political operator, experts say, reeling in defectors from rival parties to boost his 70 seats for the Bhumjaithai party, with a potential election called from a position of maximum strength.
Additional reporting by Bloomberg