Thailand's suspended PM sworn in as minister in new Cabinet
Paetongtarn, who will be Minister of Culture in the country's newly revamped Cabinet, and 13 other ministers were sworn in by King Maha Vajiralongkorn in Bangkok, according to government spokesman Jirayu Houngsub.
The ministerial shuffle was announced on Tuesday, hours before the Constitutional Court stripped Paetongtarn of prime ministerial authority. The ruling coalition had aimed to consolidate support from smaller parties following the recent withdrawal of the conservative Bhumjaithai Party, which significantly weakened the alliance's parliamentary majority.
The renewed political turbulence has cast fresh doubt on the government's ability to pass critical legislation, including the upcoming budget, and raised questions about its long-term viability. Paetongtarn's father was ousted as prime minister in a military coup, and her immediate predecessor was removed from office by court ruling in August last year. The SET Index is already the world's worst-performing stock benchmark this year.
The latest instability stems in part from a controversial phone call last month between Paetongtarn and former Cambodian leader Hun Sen, in which they discussed a simmering border dispute between the two countries. A leaked audio of the call triggered an uproar and dented her popularity, leading to speculation that smaller parties in the ruling bloc may explore new alliances, threatening the government's stability.
Political 'noise could increase in the coming months given concerns about the unity of the Pheu Thai Party-led government's coalition partners,' according to Tim Leelahaphan, a Bangkok-based economist at Standard Chartered. 'Increasingly volatile politics, coupled with recent Thai-Cambodian border tensions, have raised fears of a military takeover,' he wrote in a note on Wednesday.
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The Constitutional Court on July one gave Paetongtarn 15 days to respond to the allegations in the petition.
In a reprieve for the ruling alliance, opposition parties said they have agreed to hold off on filing a no-confidence motion against the government until the court delivers its verdict in Paetongtarn's case.
Leaders of five opposition parties – including Anutin Charnvirakul of Bhumjaithai and Natthaphong Ruengpanyawut of the People's Party – met in Bangkok and resolved to push for a referendum to pave the way for a constitutional rewrite, while also voicing opposition to a proposed bill to legalize casinos.
At a special Cabinet meeting held after the swearing-in ceremony, Phumtham Wechayachai, a deputy prime minister and Interior Minister, was appointed as the new acting premier. The senior Pheu Thai politician took over from Suriya Jungrungreangkit, who held the charge briefly after Paetongtarn's suspension. BLOOMBERG
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