Paetongtarn Shinawatra takes office as Thailand’s youngest PM, but her father’s influence looms large, making him both a key figure and a potential liability for the new government. As challenges loom, the stability of this administration remains uncertain.
The new government got down to work on Saturday with an informal Cabinet meeting in the morning. It was followed by a midday press conference led by PM Paetongtarn Shinawatra, Thailand’s youngest person to hold the job. The PM highlighted the country’s chronic problem with private sector debt as a top priority. She emphasised the elected nature of her government. Nonetheless, there are not many who don’t believe that within six to twelve months, her rule will face challenges, particularly complaints to oversight watchdogs. In particular, this will centre on her father and the patriarch of the Pheu Thai Party. He is both a key attraction and instigator of this new government but also its most significant political liability.
On Saturday, Ms. Paetongtarn also known as Ung Ing became the third member of the Shinawatra family to chair a Thai cabinet as Prime Minister. It is a dynastic political succession that began in 2001 with the PM’s father, Thaksin Shinawatra. Over the last two decades, a brother-in-law of Mr. Thaksin Shinawatra has also held the role. That is in addition to nominees of parties that he is known to have either controlled or been the figurehead of. However, in her own right, Ms Paetongtarn is Thailand’s youngest Prime Minister.
As she took up the role at Government House this weekend, she had the old Prime Minister’s office suite, used by her father, brought back to the seat of government. It is reported that the ensemble had been removed by her predecessor, Mr. Srettha.
New cabinet forms faster than expected. Government policy statement to Parliament is also brought forward
The new Cabinet has been formed expeditiously. It was not expected for at least another week. Similarly, the policy statement to Parliament, thought last week to be due on September 21st, will now happen on September 12/13. The Cabinet received best wishes on Saturday from the King.
“I wish to give my best wishes to the Cabinet to be encouraged and determined to perform their duties as they have sworn, for the benefit of the nation and its people,” the message read.
At 11:49 am, the Cabinet appeared to address the press. Ms. Paetongtarn commanded the affair. She explained a number of conclusions that the Cabinet had reached. For instance, all ministries are being asked to submit lists of retiring civil servants, as well as key officials reaching the end of their contracts.
Government seeks to tighten control. Focus will be on liquidity in the economy and the Digital Wallet scheme
This would suggest a determination by the government to take tighter control over the country’s affairs. Ministers were tasked with being prepared for the government’s policy statement. At the same time, they were ordered to be ready to explain the new government’s policies.
Ms. Paetongtarn, on Saturday, presented a cabinet with six female ministers out of 36, which was an improvement on the last lineup. She told reporters that Thailand faced chronic and challenging problems. Undoubtedly, the most pressing problem the government faces is the chronically high level of private debt, which is strangling economic expansion.
The new PM suggested there would be economic stimulus. Certainly, it is expected that a ฿122-150 billion budget will be used by the end of the month to inject cash flow into the economy.
At the same time, the new government will appear to satisfy its pledges to implement a Digital Wallet scheme.
Digital Wallet scheme faces challenges but medium to long-term plans are being reviewed by new government
However, that scheme has all but been abandoned by the government in practice. Certainly, it bogged down the last government and proved to be a political liability.
Analysts suggest that the next stage of the scheme will still be a revised cash giveaway. The government will be anxious to avoid pitfalls and may stick to already-developed software networks.
However, on Saturday, Ms. Paetongtarn also talked about medium-term and long-term plans. She highlighted that this was an elected government. In addition, she pointed out that the ministers were from all over Thailand. The PM interpreted this as diversity and said that it would give her government strength.
There was also a hint at the dynamism and nose for opportunity that her father was known for.
Indeed, an appearance by Mr. Thaksin at a leadership forum on August 22 was very well received, except for his political opponents, who are numerous. Certainly, also, the timing of the new government has coincided with a reversal of international money flows.
In short, changing economic data stateside has seen money flowing back into Thai financial markets, including the Stock Exchange of Thailand (SET).
Sea change in US markets sees baht rise sharply. Ailing Thai economy still ekes out tepid growth of 2.5-2.6%
The baht has risen sharply. Indeed by nearly 10% since the start of May.
Leadership abilities of PM Paetongtarn Shinawatra to be tested but her father does enjoy market confidence
At the same time, it has to be acknowledged that Ms. Paetongtarn’s father does inspire confidence. Whether that be political luck or talent is a question that right now does not need to be answered.
“I am confident that I will be able to integrate everyone’s strengths to solve problems for our people. We will work together effectively, using our full potential. Of course, my Cabinet and I will work hard to create opportunities for all Thai people. Opportunity is something we can create. My Cabinet and I would like to confirm that we will make this accessible to all Thai people equally. Today, my Cabinet and civil servants from all sectors are ready to work firmly and steadily for a better life for our people. They are ready to build confidence in our people that we are ready to work as a team and create equal opportunities for all people. Indeed, we will not start tomorrow, but we will start today,” she outlined.
“Certainly, we are representatives of the people, were elected from all over the country. We come from many political parties and places. Therefore we will use this diversity to create the most benefit for our people. We will use diversity as a strength, to know the real problems of the people, and to be able to solve problems directly and in time.”
After its swearing-in ceremony before His Majesty King Maha Vajiralongkorn and Queen Suthida on Friday, the new Cabinet met on Saturday morning. Dressed in yellow silk, Prime Minister Paetongtarn Shinawatra and her 35 ministers afterwards presided over the group press conference.
Rising opposition from the Palang Pracharat Party and watchdog complaints mark a surreal start for Ung Ing
Certainly, it comes in what can only be described as a surreal period in politics. The new government takes up the reins amid rising reports of opposition, in particular from the rump of the Palang Pracharat Party.
Following a major upheaval within the former governing party, the majority of MPs stayed with 74-year-old General Prawit Wongsuwan. Despite this, three MPs linked with ex-minister Thamanat Prompow are in the new Cabinet.
Troubling opposition from the right to Ung Ing’s new cabinet. Particularly, the choice of Defence Minister
Thaksin blames Pheu Thai’s loss in the 2023 General Election on Ung Ing’s need to take maternity leave before the poll
Certainly, it is from the Palang Pracharat Party that disruptive opposition from the government can be expected. This includes associates of the party submitting complaints to oversight agencies. There are reported to be nine such complaints.
One report suggests a complaint was lodged on August 19. In short, it alleges that the ruling Pheu Thai Party is being directed by an outside player. Undoubtedly, that player is former Premier Thaksin Shinawatra. Mr. Shinawatra is not a member of the party.
Legal challenges could destabilise the new government. There are real concerns over its future stability
For instance, under the current Political Parties Act of 2017, the party may certainly be dissolved if this is found to be true. Presently, it is generally accepted that this is the case. Therefore, the new government is already under the shadow of a potential shipwreck.
On Sunday, September 1st, however, the Chairman of the Election Commission, Mr. Ittiporn Boonpracong, came forward to deny any such complaint.
Nonetheless, he did emphasise that such a complaint could be lodged with his body anonymously. Furthermore, he helpfully informed reporters that if accepted, a committee would be established within six weeks to investigate the complaint.
At this time, there is considerable public disquiet at the disruption caused by the removal of Prime Minister Srettha Thavisin. However, that decision by the Constitutional Court was undoubtedly appropriate under the 2017 Constitution.
Thailand’s political instability is still at play. The Country plagued by the same old divisions for twenty years
Mr. Srettha had appointed a minister that he previously had reservations about and excluded from his first Cabinet. Significantly, that minister was jailed by the Supreme Court for Contempt of Court in 2008. At that time, he was involved in an attempt to bribe Supreme Court officials. Afterwards, police failed to pursue charges.
New cabinet excludes controversial figures while old corruption scandals arise to dog Ung Ing’s government
Subsequently, the new Cabinet of Ms. Paetongtarn or Ung Ing has been carefully chosen. It certainly saw any ministers with a chequered or questionable past excluded.
However, complaints to bodies such as the National Anti-Corruption Commission (NACC) and the Election Commission are already streaming in. One, for instance, concerns a disputed land deal. In 1990, the Alpine Golf and Sport Club Ltd. purchased 924 rai of land from a local Prachuap Khiri Khan monastery for a golf course.
Subsequently, a developed golf course was purchased by Mr. Thaksin Shinawatra’s wife, Khunying Potjaman na Pombejra, for ฿500 million. Subsequently, the sale of the land from the monastery sparked a massive corruption probe. Afterwards, a permanent secretary at the Ministry of the Interior was handed a two-year jail sentence. This followed an exhaustive National Anti-Corruption Commission (NACC) probe.
At this time, Prime Minister Paetongtarn Shinawatra retains a 30% stake in the golf resort company. The shares are valued at ฿224 million.
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Further reading:
PM vote in disarray as Pheu Thai MPs vote to support Paetongtarn or Ung Ing for the job instead
‘I am a man of integrity.’ Dismissed PM defends his honour as he is forced out of Government House
Ex-Senator gives PM Srettha 50:50 odds on surviving this Wednesday. Not impressed with his defence
Political maelstrom may be unleashed in June with potential crises brewing and coming to a climax
