New Thai PM aims to boost economy

In the face of multiple economic challenges, Thailand's Prime Minister Paetongtarn Shinawatra announced the new government's intent to focus on revitalizing the economy and improving people's welfare in her policy statement.

In her statement on Sept 12, Paetongtarn stressed that the new government will prioritize economic stimulation and continue the policies of the former government led by former leader Srettha Thavisin, including his "digital wallet" cash handout program.

Initiated during last year's general election campaign, the program gave 10,000 baht ($300) to 50 million people aged 16 and older. The policy is now expected to reach vulnerable low-income groups in the coming weeks, while others who are eligible may be paid later this year.

"It will take some time to build the digital wallet system but people cannot wait, so we need to make adjustments to ensure the plan works first," Paetongtarn said. "Along with other stimulant measures, payment in tranches will help boost the country."

Paetongtarn, leader of the Pheu Thai Party, was elected as Thailand's new prime minister in August following the court-ordered removal of Srettha for ethical violations. Under the Thai constitution, the new government is required to announce its policy to parliament before commencing work.

Starting on Sept 12, the policy statement was expected two last days but Paetongtarn arranged an urgent trip to the northernmost Chiang Rai Province on Sept 13 due to severe flood damage.

As Thailand faces several economic challenges, Paetongtarn said her government will conduct comprehensive debt restructuring targeting home and car loans. Household liability in Thailand is estimated at over 90 percent of its GDP.

Amid household debt in Thailand exceeding 16 trillion baht and rising non-performing loans, Paetongtarn said the initiative seeks to assist borrowers both within the formal financial system and outside of it.

Also, Paetongtarn noted that the government will maintain measures to widen opportunities for people to access funds for developing communities and jobs.
To relieve the concerns of small and medium-sized companies over international trade, Paetongtarn confirmed that the new government will safeguard those enterprises, especially in online platforms.

She also noted that her administration will introduce measures to reduce energy prices and public utility fees by revising energy price structures and exploring new energy sources. Paetongtarn said this will also boost tourism and bring new technologies to the agricultural sector.

Paetongtarn's Sept 12 statement did not reveal any changes in Thailand's foreign policy. However, just days after taking office the prime minister wrote on social media platform X that she would deepen the close bond between China and Thailand.

Paetongtarn wrote that Thailand's friendship with China is based on "mutual trust and respect, a common vision towards prosperity and progress, as well as familial ties between our two countries' peoples".

The new prime minister is the youngest daughter of Thaksin Shinawatra, one of Thailand's most influential political figures for over two decades and prime minister from 2001 to 2006.

At 37, Paetongtarn is the youngest leader in the country's history and its second female prime minister after Yingluck Shinawatra, who was Thai prime minister between 2011 and 2014.