logo
Thai Cabinet rift over key post risks shaking ruling bloc

Thai Cabinet rift over key post risks shaking ruling bloc

Straits Times18-06-2025

Bhumjaithai leader Anutin Charnvirakul (centre) has threatened to quit the alliance if he loses the Interior Ministry post. PHOTO: EPA-EFE
BANGKOK – Thailand's ruling party and its top coalition partner are clashing over a key ministerial post, as a looming Cabinet shakeup by Prime Minister Paetongtarn Shinawatra threatens to shift alliances and unsettle the conservative establishment.
The feud between Thailand's ruling Pheu Thai Party and its conservative coalition partner Bhumjaithai escalated this week, with Bhumjaithai leader Anutin Charnvirakul threatening to quit the alliance if he loses the Interior Ministry post.
The ruling party has countered by warning it may expel Bhumjaithai if it rejects a proposed swop of two Pheu Thai posts for Mr Anutin's role by June 19, according to a local media report.
'Bhumjaithai certainly won't give it up,' Mr Anutin told reporters after a Cabinet meeting on June 17 when asked about the feud. 'If you don't keep up your end of the bargain, it will be difficult for you to form a government in the future.'
Ms Paetongtarn didn't respond to questions from reporters on June 18 about Mr Anutin's threat.
The risk of a fresh spell of political instability may weigh on foreign investors who have dumped Thai stocks on concerns the US threat of a 36 per cent tariff will worsen the outlook for growth and hurt company earnings.
Thailand's benchmark stock index is down 20 per cent in 2025 and is among the worst performers globally.
Bhumjaithai's exit, though unlikely to bring down the government, could weaken the fragile coalition formed through a deal between royalist conservatives and ex-Prime Minister Thaksin Shinawatra, the ruling party's key power broker.
The pact let Mr Thaksin return from 15 years of self-imposed exile after he fled in 2008 to avoid corruption charges.
The interior minister post, which oversees local administration, is seen as one of the most powerful roles in the Cabinet.
It offers access to local power brokers seen as crucial to shaping future elections, with the next vote expected in 2027.
Without Bhumjaithai's 69 lawmakers, the Pheu Thai-led coalition would hold only a slim majority, down from nearly two-thirds of the 500-member House of Representatives.
That could complicate passage of key Bills in July, including a controversial proposal to legalise casinos and the next fiscal year's budget.
For now, it's unclear if the parties can mend ties after past clashes over charter changes and cannabis laws.
Tensions rose further this week as Mr Anutin and other Bhumjaithai officials were summoned in a Senate vote-rigging probe, which he called a political attack.
Mr Anutin said the Interior Ministry issue wasn't discussed in his talk with the prime minister and that he was responding to media speculation.
Pheu Thai party faces other issues, legal troubles for both Ms Paetongtarn and Mr Thaksin, sluggish economic growth, and growing pressure to address border tensions with Cambodia and trade talks with the US.
'It's better to stick together based on agreements and understanding,' Mr Anutin said. BLOOMBERG
Join ST's Telegram channel and get the latest breaking news delivered to you.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Thailand delays plan to legalise casino after political turmoil
Thailand delays plan to legalise casino after political turmoil

Straits Times

timean hour ago

  • Straits Times

Thailand delays plan to legalise casino after political turmoil

The delay will provide more time for the government to communicate with the public and address their concerns, the government said. PHOTO: UNSPLASH BANGKOK – Thailand's ruling coalition will delay the introduction of a controversial Bill to legalise casinos after its parliamentary majority was reduced with the exit of a key ally last week. The so-called 'entertainment complex' Bill was set to be the first major agenda when the House of Representatives reconvenes in July. Prime Minister Paetongtarn Shinawatra's administration was forced to delay the Bill once earlier due to mounting opposition from religious groups, anti-gambling networks and some political parties. The delay will provide more time for the government to communicate with the public and address their concerns, Mr Manaporn Charoensri, a deputy transport minister and Cabinet whip, said on June 25. It's not clear when government lawmakers plan to put the bill back on the house agenda. The move came after the ruling alliance was pushed to the brink by the exit of Bhumjaithai Party, which has vowed to oppose the Bill. Ms Paetongtarn is under fire for a leaked phone conversation with former Cambodian leader Hun Sen, in which she was critical of the Thai army's role in an ongoing border stand-off with the neighbouring country. Without a clear majority, the government may face challenges in passing controversial or essential Bbills that have been lined up in the coming months. The budget Bill for next fiscal year from October is also expected to be taken up for the second and third readings in August. The exit of pro-cannabis Bhumjaithai also allowed Ms Paetongtarn's ruling Pheu Thai party to move to re-criminalise the plant as narcotics, just three years after allowing its free use. The entertainment complex Bill is a flagship Pheu Thai proposal and was endorsed by the Cabinet in March. Setting up of integrated resorts can boost foreign tourist arrivals by 5 per cent to 20 per cent and lift average spending per person per trip by about 22,000 baht (S$863), the party has said. But critics of the casino plan have argued the gaming venues will fuel gambling addiction and benefit big businesses and foreign companies. They also cite risks of inviting casinos into the country at a time when transnational crime syndicates have turned casino towns in neighbouring countries into cyber scam dens and hubs for money laundering and drug trafficking. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.

Multilateralism will need to evolve to become more ‘flexible', says PM Wong at WEF
Multilateralism will need to evolve to become more ‘flexible', says PM Wong at WEF

Straits Times

timean hour ago

  • Straits Times

Multilateralism will need to evolve to become more ‘flexible', says PM Wong at WEF

PM Lawrence Wong (left) and WEF President Borge Brende attending a session of the WEF Annual Meeting of the New Champions in Tianjin, China on June 25. PHOTO: AFP Multilateralism will need to evolve to become more 'flexible', says PM Wong at WEF TIANJIN – With global rules weakening and economic nationalism on the rise, Singapore is proposing a workaround of getting like-minded countries to cooperate on specific issues, while leaving the door open for others to join in future. 'This is what we would call a flexible multilateralism,' Prime Minister Lawrence Wong said during the question-and-answer segment of a World Economic Forum (WEF) event on June 25 in Tianjin. 'It is not about an ad-hoc array of different rules but starting first laying the building blocks, and eventually others can join, and we can steer progress in the right direction.' PM Wong added: 'Whatever we do, it is open, it is inclusive. Others may not be ready to join, but in time to come, they can join and we can multilateralise these efforts.' He called for countries to find ways to evolve the multilateralism system, rather than abandon it altogether. The American-led post-war global order which had allowed for free trade and prosperity for countries big and small has come under threat with the US imposition of high tariffs on goods from much of the world, especially from China. The United States has imposed a 10 per cent tariff on Singapore, even though it has a Free Trade Agreement and a trade surplus with the Republic. 'For small countries like Singapore, we are worried because we have limited options, we have limited bargaining power, and we risk being marginalised,' said Mr Wong in his opening remarks during the dialogue. He said bigger countries will also find it hard to deal and operate in the new environment, because it will be harder for the world to address common threats, such as pandemics, climate change or financial shocks. In response, Singapore will still strive to bring people together, promote integration, bring down barriers and strengthen multilateralism, he said. Mr Wong said he hoped to see a kind of 'multilateralism that is more resilient, more inclusive and better suited to the realities of our time', adding that Singapore will do its part in this endeavour. 'The efforts may seem small and incremental, but if like-minded countries everywhere were to do our part, then collectively, I think we can make a difference, and then step by step, hopefully we can lay the groundwork for a new and more stable global order in time to come,' he said. During the question-and-answer segment with WEF president Borge Brende, Mr Wong cited an example of what Singapore has done to this end. During the question-and-answer segment with WEF president Borge Brende, Mr Wong cited an example of what Singapore has done to this end. PHOTO: AFP Singapore, together with Japan and Australia, had pushed for a joint initiative at the World Trade Organisation (WTO) on e-commerce. After five years of negotiations, more than 70 countries have joined this initiative, which serves as the building block for the first set of global rules on digital trade. 'It is painstaking work, but there is no alternative. A new system does not just appear by magic. You have to work at it and with creative, pragmatic solutions, bringing along like-minded countries,' he said. When asked to comment on how Singapore balances its ties between the US and China, Mr Wong said Singapore has 'broad and substantial' ties with both of them. 'I know everyone monitors and tracks what we say and what we do very closely. Trying to parse every hidden meaning behind every word, behind every action, whether we are moving closer to one or the other. But that is not how we look at things,' he said. Singapore's starting point, Mr Wong explained, is to look at how it advances its own national interest. 'Our interests are to have close, good relations on substance with both America and China, and we will continue to do whatever we need to do to promote and advance Singapore's interest ,' Mr Wong said. 'It is not about balancing between the two superpowers, but it is about being consistent and principled in advancing and promoting Singapore's interests, and that is what we will continue to do.' Yew Lun Tian is a senior foreign correspondent who covers China for The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.

Thailand moves to recriminalise cannabis, shaking US$1b industry
Thailand moves to recriminalise cannabis, shaking US$1b industry

Business Times

timean hour ago

  • Business Times

Thailand moves to recriminalise cannabis, shaking US$1b industry

[BANGKOK] Thailand's government is moving to recriminalise cannabis, plunging into limbo an industry estimated to be worth over US$1 billion that has boomed since the substance was taken off the country's narcotics list in 2022. The push to impose new controls on recreational use of cannabis comes after the Bhumjaithai Party, which championed its legalisation, withdrew from the ruling coalition last week following Thai Prime Minister Paetongtarn Shinawatra's apparent mishandling of a border row with Cambodia. Late on Tuesday, Thailand's health ministry issued an order prohibiting the sale of cannabis for recreational use and making it mandatory for any retail purchase to require a doctor's prescription. The new rules will come into effect once they are published in the Royal Gazette, which could happen within days. 'Cannabis will be classified as a narcotic in the future,' Health Minister Somsak Thepsuthin said on Tuesday. Three years ago, Thailand became one of the first countries in Asia to decriminalise the recreational use of cannabis, but without any comprehensive rules to govern the sector. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Since then, tens of thousands of shops and businesses selling cannabis have sprung up across Thailand, many of them located in the country's tourism hubs. Thai Chamber of Commerce previously estimated the industry, which includes medicinal products, could be worth US$1.2 billion by 2025. Unregulated access to cannabis has created serious social problems, particularly for children and young people, said government spokesman Jirayu Houngsub. 'The policy must return to its original goal of controlling cannabis for medical use only,' Jirayu said in a statement. The recriminalisation push has left some cannabis industry members like Punnathat Phutthisawong, who works at the Green House Thailand dispensary in Bangkok, stunned. 'This is my main source of income,' Punnathat, 25, told Reuters. 'Many shops are probably just as shocked because a lot of them invested heavily.' The cannabis sector could have transformed Thai agriculture, medicine and tourism, but uncertainty and policy reversals have stymied any sustainable growth, said cannabis activist Chokwan Kitty Chopaka. 'The cannabis industry has become a hostage to politics,' she said. On Wednesday, there was still a steady trickle of customers – mainly tourists – coming into cannabis shops in Bangkok's Khao San Road area, among them Daniel Wolf, who is visiting from Australia. 'There are shops everywhere, so how do they reverse this? I don't think they can,' he said, ' It's absolutely insane.' REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store