(Bloomberg) Thailand’s former leader Thaksin Shinawatra’s youngest daughter has been elected by parliament as the country’s next prime minister, capping a tumultuous era that also saw a court oust the previous leader and disband the country’s largest opposition party.
Most read articles on Bloomberg
At 37, Pathontar Shinawatra became Thailand’s youngest prime minister with the support of 319 of the country’s 500 lower house lawmakers. His election keeps intact an uneasy alliance between his Pheu Thai party and royalist conservatives and military-backed parties that coalesced after last year’s election.
A tense Prime Minister, Pathomtharn, spoke to reporters for the first time since the parliamentary vote and said he would not answer any questions about government policies and would wait until he had received King Vajiralongkorn’s approval.
“I’ve never thought of myself as the smartest person in the room, but I have a clear motivation and a strong team,” Paetontern said, her voice trembling. “My father contacted me on FaceTime and told me to do my best. He said he was happy to see his daughter in this role before he got Alzheimer’s.”
Pathonthan would become the third leader of the influential Shinawatra clan, whose father was ousted in a 2006 coup and whose aunt, Yingluck Shinawatra, was deposed by a court shortly before the military took power in 2014.
He was elected prime minister after the country’s Constitutional Court removed Sreta Tabishin from her position over an ethics case. During his 11 months in office, his party’s popularity dwindled and the now-disbanded Move Forward party, which won the most seats in last year’s election and is now the royalist establishment’s main rival, steadily gained popularity.
Paethontharn may continue many of the policies pushed by his government but may abandon plans to distribute 10,000 baht ($285) to each of Thailand’s estimated 50 million adults as an economic stimulus package, local media reported on Friday. Most of Suretha’s cabinet ministers are likely to stay on, but Pichai Chunhavajira, who headed the Ministry of Finance, may be replaced, the Thai-language Krungthep Turaki newspaper reported.
What to know about Thailand’s youngest prime minister: QuickTake
The story continues
In addition to maintaining his coalition government, Prime Minister Pathan will need to find ways to boost sluggish economic growth, attract foreign investment to the high-tech sector and stem the outflow of foreign capital from domestic stocks.
Thailand’s main stock index has been the world’s worst performer this year, with overseas funds withdrawing more than $3 billion in the period. The baht has fallen about 2.6 percent this year, and overseas investors sold a net $691 million in bonds this week in a sign that bonds are becoming less attractive.
The University of Surrey graduate had previously supported lowering interest rates and criticized the bank for its independence, saying it was an “obstacle” to solving the country’s economic problems. The Bank of Thailand has ignored calls from Mr. Suretta and his aides to lower interest rates, keeping borrowing costs at a decade-high 2.5 percent.
The Thaksin Agreement
“I decided it was about time to do something for the country and the party,” Patontern said on Friday. “I want to do my best to move the country forward and that’s what I intend to do. Right now I feel very honoured and very happy.”
Conservative groups’ support for the Pheu Thai-led government is evidence that the agreement with the royalist government that allowed Thaksin to return from 15 years in exile is still valid. The main opposition party, now known as the Thai People’s Party, is seeking to change the law to protect the king and other senior members of the royal family from criticism.
While her victory brings a short period of political instability, it is far from certain that her government will be stable, and the shadow of her father, who served as prime minister twice and remains a major influence in Thai politics, will loom over her leadership.
“She will be a puppet of her father and will not be able to do much,” said Puncchada Sirivunnabuddh, an associate professor at Thailand’s Mahidol University. “The question remains how she can solve the economic problems that even former prime minister Suletta could not solve.”
–With assistance from Suttinee Yuvejwattana, Pathom Sangwongwanich, and Anuchit Nguyen.
(Please enter the new leader’s comments.)
Most read articles on Bloomberg Businessweek
©2024 Bloomberg LP