Thailand’s slumping economy is new leader Paetongtarn’s focus in her first parliamentary speech

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BANGKOK (AP) — Thailand’s new Prime Minister Paithongtarn Shinawatra pledged Thursday in her opening address to parliament to continue many of her predecessor’s plans to solve the country’s economic woes.

Paithongtarn, leader of the ruling Pui Thai Party and daughter of former Prime Minister Thaksin Shinawatra, took office last month after a court ousted Sretha Thavisin from office over allegations he violated ethics law by appointing a cabinet member who had served time in prison in a bribery case.

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The Pheu Thai party formed a government headed by Sritha after conservative senators refused to support the prime minister nominated by the Progressive Forward Party, which won the most seats in last year’s general election.

Thailand faces a number of economic challenges, and Paithongtarn said on Thursday that her government would urgently address the issues of high household debt, rising living costs and falling incomes “to restore hope to the Thai people as soon as possible.”

Among the government’s most urgent plans are measures to ease household debt, reduce rising electricity, gasoline and transportation costs, boost tourism and introduce new technologies into the agricultural sector, she said.

Paithongtarn said the government would generate new revenue by legalizing and taxing the “informal economy” and the “underground economy.” Although she did not provide details, it was an apparent reference to plans to legalize casinos, which are being promoted as “entertainment complexes” that can attract windfall revenue.

The bill, sponsored by the Finance Ministry, would allow casinos to operate within a complex that also houses other businesses such as a hotel, convention hall, shopping mall or amusement park. Entry to the casinos would be restricted to those under 20. They would be open to foreigners, while Thai citizens would have to pay an entrance fee of 5,000 baht ($148), according to the bill.

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She said the government would protect small businesses from unfair competition from foreign operators, especially on online platforms. Industry groups in Thailand have expressed growing concern about the influx of cheap products from China, which they say has hurt sales of local producers.

Paithongtarn said she would implement the Sreetha program to distribute 10,000 baht ($296) in digital cash, though details in her speech were scarce. Officials from her administration said the “digital wallet” program, which she initially promised during last year’s election campaign to distribute cash handouts to all Thais aged 16 and older, would now prioritize vulnerable, low-income groups. They are due to receive a lump sum payment this month or by October, while others who qualify could receive installments later this year.

In a shift from Sritha, who has vowed to make cannabis illegal again, Paithongtarn said her administration would support medical cannabis as a way to boost the economy, while adding regulations to mitigate its social impact. Cannabis was decriminalized in Thailand in 2022, and was intended for medical use only, but in practice the market is largely unregulated and there has been a proliferation of retail outlets catering to recreational users.

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Concerns about drug use, especially among young people, as well as health concerns, have drawn negative public reaction, and during last year’s election campaign, Pitongtarn’s Pheu Thai Party, along with other parties, pledged to restore measures to ban drugs. But in July, the government suddenly signaled it was backing away from that pledge.

In the long term, Paithongtarn said, her government would also address climate change, improve the quality of education and universal health care, and address political instability by drafting a more democratic constitution and reforming the bureaucracy and military.

Thailand’s election results last year revealed a strong mandate for change after nearly a decade of military rule. Reforms of the military—a powerful political force that has staged two coups since 2006—were part of the Pheu Thai Party’s campaign platform, though it largely backed away from that pledge after taking power and forming a government with pro-military parties.

Paithongtarn’s rise to power, which makes her the country’s youngest leader and only the second female prime minister in its history, represents a revival of a struggling political dynasty that began with her father Thaksin, a billionaire telecoms tycoon, who was elected prime minister in 2001 but was ousted in a military coup in 2006.

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She is the third close member of the Shinawatra family to serve as prime minister. Thaksin’s sister, Yingluck Shinawatra, was Thailand’s first female prime minister from 2011 to 2014. His brother-in-law, Somchai Wongsawat, briefly served as prime minister in 2008.

Thaksin remains a powerful political figure and is seen as the de facto leader of the Pheu Thai Party. His apparent dominance of the party has sparked widespread controversy, including a petition to the Election Commission accusing the Pheu Thai Party of allowing an outsider to take control, which could lead to the party being dissolved.

After Thaksin was ousted in 2006, the military worked with other conservative forces in Thai society to try to thwart the return of his political machine. Thaksin’s ouster sparked years of conflict between his supporters and opponents, on the streets, in the courts, and at the ballot box.

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