Thaksin’s Daughter Paetongtarn Shinawatra Becomes Thailand’s New Prime Minister

(Bloomberg) -- Paetongtarn Shinawatra, a daughter of former Thai leader Thaksin Shinawatra, won a parliament vote to become the Southeast Asian nation’s new prime minister, capping a tumultuous period during which a court ousted her predecessor and dissolved the top opposition party. 

Paetongtarn, 37, secured the support of at least 251 lawmakers midway through the voting in the 500-member House of Representatives. Her nomination was endorsed by an 11-member coalition led by Shinawatra-controlled Pheu Thai Party that had more than 300 lawmakers in the lower house.

She becomes the third member of the influential Shinawatra clan to lead the country and the youngest prime minister in Thailand’s history. She was picked for the top job after the country’s Constitutional Court dismissed Srettha Thavisin as prime minister in an ethics violation case linked to the appointment of a tainted lawyer as a minister.

Stimulus Plan

While a Pheu Thai-controlled government under Paetongtarn may continue much of the policies pursued by Srettha’s administration, it may abandon a controversial plan to distribute 10,000 baht ($286) each to an estimated 50 million adults to stimulate the economy, according to local media reports on Friday.

While most of the members of Srettha cabinet may remain in their roles, Pichai Chunhavajira, who helmed the finance ministry will not be part of the new team, Thai-language Krungthep Turakij reported.

On Thursday, Paetongtarn vowed to “do everything in my capability” to pull Thailand out of the “economic crisis” with the support of the coalition. Her administration challenges include bolstering growth through looser fiscal policies and tackling the high cost of living and near-record household debt. 

Paetongtarn’s elevation comes after Srettha’s 11-month-old tenure saw his party’s popularity sliding and that of the now-disbanded Move Forward — the principal opponent of the pro-royalist establishment — steadily climbing. The Shinawatra scion, in the company of her still popular father, is expected to counter the rise of the opposition People’s Party that’s seeking to reform lese majeste — a law that protects King Maha Vajiralongkorn and other top royals from criticism.

Thaksin Deal

Some of the nation’s biggest pro-royalist conservative parties rallied behind Pheu Thai, which is effectively controlled by Thaksin and his family, in a sign that a deal that brought the former leader back to Thailand following a prolonged exile was still intact.

Besides steering an uneasy coalition, Paetongtarn will need to find ways to lift average annual economic growth of below 2% over the past decade, attract foreign investment into high-tech industries and stem the exodus of foreign funds from the nation’s stocks.

An alumnus of the University of Surrey has previously advocated for lower interest rates and slammed the central bank, saying its autonomy posed an “obstacle” to resolving the country’s economic issues.

Thailand’s benchmark stock index is among the world’s worst performers this year with foreign funds withdrawing more than $3 billion during the period. The baht has lost about 2.8% this year, and foreign investors have net sold $691 million of bonds this week in a sign that the notes are losing their appeal.

(Updates with details from fourth paragraph.)

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