Thailand’s new PM Srettha, Cabinet sworn in as economic risks mount

BANGKOK – Thailand’s Prime Minister Srettha Thavisin and his Cabinet were sworn into office on Tuesday, nearly four months after a general election, with the new government set to unveil measures to tackle the high cost of living and near-record household debt.

Mr Srettha and 33 ministers took the oath of allegiance before King Maha Vajiralongkorn at a traditional ceremony at the royal palace in Bangkok.

Mr Srettha will now present a policy-priority statement at a joint session of Parliament likely to be held on Sept 11, to be followed by the first official Cabinet meeting a day later that may decide on slashing diesel and electricity prices.

The swearing-in draws the curtains on a post-election political stalemate that stemmed from a fractured result, causing a partial policy paralysis and exodus of foreign funds.

Mr Srettha’s coalition government faces the task of jump-starting South-east Asia’s second-largest economy amid rising interest rates and a slowdown in exports.

The immediate tasks awaiting Mr Srettha, who also oversees the Finance Ministry, include the finalisation of the state budget for the fiscal year starting Oct 1.

The government has already announced plans to cut energy prices and city-train fares, and temporarily suspend debt repayment by farmers as part of a raft of measures to ease the cost of living and boost investment in the US$500 billion (S$681 billion) economy.

Mr Srettha’s Pheu Thai Party, which leads the 11-party coalition, has also pledged to press ahead with a US$16 billion cash handout plan for about 55 million Thais aged 16 years and above.

The so-called digital wallet plan is meant to stimulate consumption and investment, according to the Prime Minister.

Mr Srettha was elected prime minister in August after Pheu Thai reached an agreement with the military-backed and pro-royalist parties that swung the support of the influential Senate for the former property tycoon.

The deal also saw Thaksin Shinawatra, the de facto leader of Pheu Thai, return from a 15-year self-exile and receive a partial royal pardon.

While the upstart Move Forward Party won the most seats and popular votes in the May election, its leader Pita Limjaroenrat’s bid to take power as head of a coalition of pro-democracy parties was thwarted by the Senate.

The Senate and pro-establishment parties opposed Move Forward’s plan to amend the controversial royal insult law. BLOOMBERG

BANGKOK – Thailand’s Prime Minister Srettha Thavisin and his Cabinet were sworn into office on Tuesday, nearly four months after a general election, with the new government set to unveil measures to tackle the high cost of living and near-record household debt.

Mr Srettha and 33 ministers took the oath of allegiance before King Maha Vajiralongkorn at a traditional ceremony at the royal palace in Bangkok.

Mr Srettha will now present a policy-priority statement at a joint session of Parliament likely to be held on Sept 11, to be followed by the first official Cabinet meeting a day later that may decide on slashing diesel and electricity prices.

The swearing-in draws the curtains on a post-election political stalemate that stemmed from a fractured result, causing a partial policy paralysis and exodus of foreign funds.

Mr Srettha’s coalition government faces the task of jump-starting South-east Asia’s second-largest economy amid rising interest rates and a slowdown in exports.

The immediate tasks awaiting Mr Srettha, who also oversees the Finance Ministry, include the finalisation of the state budget for the fiscal year starting Oct 1.

The government has already announced plans to cut energy prices and city-train fares, and temporarily suspend debt repayment by farmers as part of a raft of measures to ease the cost of living and boost investment in the US$500 billion (S$681 billion) economy.

Mr Srettha’s Pheu Thai Party, which leads the 11-party coalition, has also pledged to press ahead with a US$16 billion cash handout plan for about 55 million Thais aged 16 years and above.

The so-called digital wallet plan is meant to stimulate consumption and investment, according to the Prime Minister.

Mr Srettha was elected prime minister in August after Pheu Thai reached an agreement with the military-backed and pro-royalist parties that swung the support of the influential Senate for the former property tycoon.

The deal also saw Thaksin Shinawatra, the de facto leader of Pheu Thai, return from a 15-year self-exile and receive a partial royal pardon.

While the upstart Move Forward Party won the most seats and popular votes in the May election, its leader Pita Limjaroenrat’s bid to take power as head of a coalition of pro-democracy parties was thwarted by the Senate.

The Senate and pro-establishment parties opposed Move Forward’s plan to amend the controversial royal insult law. BLOOMBERG