A coalition of Thai political parties seeking to form the next government pledged to stimulate the economy through a mix of cash handouts and fiscal measures, as it laid out its policy priorities ahead of a parliament vote to elect a new premier.
The 11-party alliance plans to roll out “policies to stimulate economic growth as soon as possible,” Cholnan Srikaew, leader of Pheu Thai party that heads the group, told reporters on Monday. A payment of 10,000 baht ($284) each to all Thais aged 16 and above through digital wallet, higher minimum wages and crop prices will be prioritized, he said.
The measures, part of Pheu Thai’s pre-poll promises, are aimed at reviving growth in an economy expanding at one of the weakest pace in Southeast Asia. Data Monday showed gross domestic product grew 1.8% in the second quarter, missing analysts estimate for a 3% growth and prompting authorities to slash the 2023 forecast to a range of 2.5% to 3% from 2.7%-3.7% seen previously.
The $500 billion trade- and tourism-reliant economy faces headwinds from a slowdown in China, which has hurt Thai exports, and also a slow return of Chinese tourists.
The coalition on Monday inducted Palang Pracharath, a party headed by former army chief Prawit Wongsuwan, taking the bloc’s strength to 314 in the 500-member House of Representatives. Palang Pracharath, which has 40 lawmakers, had backed outgoing Prime Minister Prayuth Chan-Ocha in the 2019 election.
Srettha Thavisin, the bloc’s prime minister candidate, will seek parliament endorsement on Tuesday, but his fate rests on the military-appointed Senate, whose 250 members vote in a joint assembly alongside the lower house. The addition of Palang Pracharath and United Thai Nation, both military-backed groups, may help the coalition win over the backing of the Senate for Srettha.
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Cholnan said the coalition expected Srettha to sail through the vote as it was confident of enough support from the Senate. The alliance partners have also agreed on a broad division of ministries with Pheu Thai getting eight slots and Bhumjaithai party, the second-largest member of the bloc, getting four cabinet positions, he said.
Second-placed Pheu Thai cobbled together a coalition after election-winner, Move Forward Party’s Pita Limjaroenrat, was previously blocked from becoming prime minister largely due to his pledge to amend the royal insult law and other reformist agendas.
--With assistance from Anuchit Nguyen and Suttinee Yuvejwattana.
(Recasts throughout.)
Author: Patpicha Tanakasempipat, Pathom Sangwongwanich and Anuchit Nguyen
