BANGKOK (AP) — Thailand’s new prime minister Paetongtarn-Shinawatra promised in her inauguration speech to parliament on Thursday that she would continue many of her predecessor’s plans to solve the country’s economic problems.
Paetongtarn, the leader of the ruling Pheu Thai Party and daughter of the former prime minister Thaksin Shinawatratook office last month after a court has deposed Srettha Thavisin was removed from his post over charges that he violated an ethics law by appointing a cabinet member who had served a prison sentence in connection with a bribery case.
Pheu Thai formed a government led by Srettha after members of the conservative Senate refused to support the prime minister who was elected by the progressive Move Forward Partywhich won the most seats in last year’s general election.
Thailand is facing several economic challenges and Paetongtarn said on Thursday her government will urgently address the problems of high household debt, rising living costs and lagging incomes “to restore hope to the Thai people as soon as possible.”
The government’s more immediate plans include measures to ease household debt and reduce rising electricity, gasoline and transportation costs, as well as boost tourism and introduce new technologies into the agricultural sector, she said.
Paetongtarn said the government will generate new revenue by legalizing and taxing the “informal economy” and the “underground economy.” While she did not provide details, it was an apparent reference to plans to legalize casinos, which are promoted as “entertainment complexes” that could attract revenue windfalls.
The bill, sponsored by the Finance Ministry, says a casino can operate within a complex that also houses other businesses, such as a hotel, a convention center, a shopping mall or an amusement park. Access to casinos will be restricted to those under 20. They will be open to foreigners, with Thai citizens required to pay a 5,000 baht ($148) entrance fee, the bill said.
She said the government would protect small businesses from unfair competition from foreign operators, particularly on online platforms. Industry groups in Thailand have expressed growing concern about an influx of cheap products from China that they say has hurt sales by domestic producers.
Paetongtarn said she will carry Srettha’s 10,000 baht ($296) digital money distribution programAlthough details were scarce in her speech, officials from her administration have said the “Digital Wallet” program, initially promised during last year’s election campaign to provide cash to all Thais aged 16 and over, will now prioritize vulnerable, low-income groups. They will receive a lump sum this month or in October, while others who qualify may be paid in installments starting later this year.
In a shift of Sretthawho had vowed to make cannabis illegal again, Paetongtarn said her government would support medical cannabis as a way to boost the economy, with additional regulations to soften its social impact. Cannabis was decriminalized in Thailand in 2022, intended only for medical use, but in practice the market has been largely unregulated and there has been a proliferation of shops catering to recreational users.
Fears about drug abuse, especially among young people, and health concerns led to a public backlash, and during last year’s election campaign, Paetongtarn’s Pheu Thai, along with other parties, promised to reinstate measures to ban the drug. However, the government suddenly announced in July that it was backtracking on that promise.
Paetongtarn said her government will also tackle climate change in the longer term, improve the quality of education and the universal health care system, and address political instability by drafting a more democratic constitution and reforming the bureaucratic system and the military.
The results of last year’s Thai elections revealed a strong mandate for change after nearly a decade under military control. Reforms to the military — a powerful political player that has carried out two coups since 2006 — were part of Pheu Thai’s campaign platform, though it scaled back the promise significantly after taking power and formed a government with pro-military parties.
Paetongtarn’s rise to power, making her the country’s youngest leader and second female prime minister, symbolizes the revival of the warring political dynasty that began with her father Thaksin, a billionaire telecommunications magnate who was elected prime minister in 2001 but ousted in a military coup in 2006.
She is the third close member of the Shinawatra clan to take over as prime minister. Thaksin’s sister, Yingluck Shinawatrawas the first female prime minister of Thailand from 2011 to 2014. A woman by marriage, Somchai Wongsawat, was also briefly prime minister in 2008.
Thaksin remains a highly influential political figure and is seen as a de facto leader of Pheu Thai. His apparent dominance over the party has led to controversy, including a petition to the Election Commission accusing Pheu Thai of allowing an outsider to control the party, which could lead to the party’s dissolution.
After Thaksin was ousted in 2006, the military joined forces with other conservative forces in Thai society to try to thwart a comeback by his political machine. Thaksin’s ouster sparked years of fighting between his supporters and opponents on the streets, in the courts and at the ballot box.
