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News / Nation & World

Thailand’s new government sworn in after bout of political chaos

By Patpicha Tanakasempipat, , Bloomberg News (TNS),
Published: September 6, 2024, 11:15am

Thailand’s new Prime Minister Paetongtarn Shinawatra and her cabinet were sworn into office on Friday, allowing her administration to get down to work after the Southeast Asian nation was swept by a spell of political turmoil.

The 38-year-old prime minister and 35 cabinet members took the oath of allegiance before King Maha Vajiralongkorn in a traditional ceremony at the royal palace in Bangkok. Paetongtarn’s cabinet will hold its first meeting on Saturday to finalize the administration’s policy statement, which will be presented to the parliament next week.

The swearing-in ceremony completed a weekslong government formation process that was necessitated by the Constitutional Court’s dismissal of former premier Srettha Thavisin in an ethics violation case. Paetongtarn, the youngest daughter of influential former leader Thaksin Shinawatra, was elected by parliament to succeed Srettha on Aug. 16, with the new Pheu Thai Party-led coalition government remaining largely same as the previous one.

Paetongtarn’s administration faces the task of jump-starting Southeast Asia’s second-largest economy amid sluggish exports, near-record household debt and high cost of living. She’s pledged to rework a controversial $14 billion cash handout that promises 10,000 baht each to almost all adult Thais.

The so-called digital wallet program aims to turbocharge economic growth to 5%, more than double the average sub-2% growth rates for nearly a decade under military-backed rule. About 14.5 million people, including 1 million with disabilities, may be covered in the first phase of the program in September, according to officials.

Paetongtarn also faces the challenge of keeping an unwieldy coalition of conservative and pro-royalist parties together while reassuring investors that she can attract foreign investment into high-tech industries and help sustain a fragile economic recovery.

Thailand’s financial markets have cheered the end of the political turmoil that began with the dissolution of the country’s largest opposition party last month. The benchmark SET Index has bounced almost 11% since Paetongtarn was nominated as the new leader on Aug. 15 and the baht has gained 4% during the period, reaching its highest level in more than a year.

—With assistance from Pathom Sangwongwanich.


©2024 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

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