logo
Thailand political crisis: Phumtham becomes acting PM as Paetongtarn suspended in ethics probe

Thailand political crisis: Phumtham becomes acting PM as Paetongtarn suspended in ethics probe

Malay Maila day ago
BANGKOK, July 3 — Thailand's king is scheduled on Thursday to swear in a new cabinet in a reshuffle that will see a third person in a week take on the role of the country's prime minister.
The Southeast Asian nation's top office was plunged into turmoil on Tuesday when the Constitutional Court suspended Prime Minister Paetongtarn Shinawatra pending an ethics probe, which could take months.
Power passed to Transport Minister and Deputy Prime Minister Suriya Jungrungreangkit, who held the role for only one full day, as the bombshell ruling landed during an awkward interim before the reshuffle.
When former Defence Minister Phumtham Wechayachai is sworn into his new position as Interior Minister, he will also take on a deputy prime minister role outranking Suriya's — thus becoming the acting premier.
Before Paetongtarn was ousted, she had assigned herself the role of Culture Minister in the new cabinet, meaning she is set to retain a perch in the upper echelons of power.
The revolving door of leadership comes as the kingdom is battling to revive a faltering economy and secure a US trade deal to avert Donald Trump's looming threat of a 36 per cent tariff.
Phumtham is considered a loyal lieutenant to the suspended Paetongtarn and her father, Thaksin Shinawatra, the powerful patriarch of a dynasty that has dominated Thai politics in the 21st century.
Thaksin-linked parties have been jousting with the pro-military, pro-conservative establishment since the early 2000s, but analysts say the family's political brand is now in decline.
The 71-year-old Phumtham earned the nickname 'Big Comrade' for his association with a left-wing youth movement of the 1970s, but transitioned to politics through a role in Thaksin's telecoms empire.
In previous cabinets, he held the defence and commerce portfolios, and briefly served as acting prime minister after a crisis engulfed the top office last year.
Paetongtarn has been hobbled by a longstanding territorial dispute between Thailand and Cambodia, which flared into cross-border clashes in May, killing one Cambodian soldier.
When she made a diplomatic call to Cambodian ex-leader Hun Sen, she reportedly called him 'uncle' and referred to a Thai military commander as her 'opponent', according to a leaked recording that caused widespread backlash.
A conservative party later abandoned her ruling coalition — triggering the cabinet reshuffle — accusing her of kowtowing to Cambodia and undermining the military.
The Constitutional Court said there was 'sufficient cause to suspect' Paetongtarn breached ministerial ethics in the diplomatic row. — AFP
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Finance ministry says SST revisions don't necessitate hotel price hikes
Finance ministry says SST revisions don't necessitate hotel price hikes

Malay Mail

time2 hours ago

  • Malay Mail

Finance ministry says SST revisions don't necessitate hotel price hikes

KUALA LUMPUR, July 4 — The Ministry of Finance (MoF) indicated that the Sales and Service Tax (SST) does not warrant the hotel room rate increases asserted by some hotel associations. The ministry clarified that the SST revisions effective July 1 do not include any change in the service tax applied to hotel accommodation or food and beverages (F&B) served at hotels. 'The SST revisions do not affect basic daily goods but may affect hotels indirectly through the expansion of service tax to cover rental on commercial properties and also sales tax on selected food items such as premium seafood and imported fruits. 'However, these indirect impacts are unlikely to translate to a 10 per cent to 15 per cent increase in costs faced by hotels,' MoF told Bernama when asked about a possible hike in hotel rates due to the extended SST. The ministry was responding to claims by hotels that they would need to raise room prices by 10 to 15 per cent following the revised tax structure. The MoF added that if hotels proceed to raise rates on the pretext of the SST, the government, through the Ministry of Domestic Trade and Cost of Living (KPDN), will examine the matter to prevent unreasonable price increases. 'If there are hotels that do raise rates by 15 per cent on the pretext of SST, the government, through KPDN, will review the impact of SST on these hotels to ensure there is no element of profiteering,' it said. — Bernama

Fiscal reform: short-term pain for long-term (and short-term) gain
Fiscal reform: short-term pain for long-term (and short-term) gain

Free Malaysia Today

time2 hours ago

  • Free Malaysia Today

Fiscal reform: short-term pain for long-term (and short-term) gain

The Madani economic framework has set ambitious goals for fiscal stability and an improved revenue-to-GDP ratio. As I had recommended from the start this process is following three main stages. The first involves cutting wastage, leakages and corruption with subsidy rationalisation at its core. So far savings have been made of RM4 billion from electricity tariff reform, RM7.5 billion from diesel rationalisation and around RM1.5 billion from other areas. To this RM13 billion we expect to see at least RM8 billion from RON95 rationalisation. This RM21 billion is a structural saving which will continue each year and is equivalent to 6.3% of current operational expenditure or 23.6% of development expenditure. The second stage of fiscal reform involves assessing tax options and making modest well-scheduled adjustments rather than large and disruptive quick fixes. So far relatively minor tax changes have been introduced, mostly targeted at the rich, including the high-value goods tax (HVG), the digital goods tax (DGT), the capital gains tax (CGT) and the low-value goods tax (LVG). These could raise around RM2.5 billion. The biggest changes have been in the sales and services tax (SST) which raised RM5.5 billion last year and from next month will raise RM5 billion for the rest of this year and RM10 billion annually thereafter. Added to the subsidy savings, these structural tax changes are equivalent to 10.1% of current operational expenditure or 38.2% of the 2025 development expenditure budget. The final stage of fiscal reform, which we are about to enter, is to restructure the system for the long-term particularly to diversify the revenue base for greater stability, predictability and efficiency. This means setting a new revenue model to reduce dependency on volatile revenue sources and Malaysia's historical reliance on commodity-based revenues from Petronas which may last for only the next 15 years. A broader and more resilient tax and revenue base helps to insulate the economy from global volatility and commodity price fluctuations by focusing on more stable and predictable domestic revenue sources which rise as the economy grows and so maintains the revenue-to-GDP ratio organically. Despite these modest and well-scheduled changes, there has been the usual chorus of outrage, especially from business groups who would scream in pain if hit by a falling feather. The truth is that the short-term pain of adjustment costs and minor price rises have mostly already ended and the majority of people did not even notice it. It is not surprising that businesses support the reintroduction of the goods and services tax (GST) because they mostly do not pay it, they reclaim it after passing on price increases to consumers. The discussion of the reintroduction of GST is unhelpful, especially because it has been ruled out for now. In considering options for new or expanded taxes the government must take a fresh approach that reflects changes in the economy, such as the emerging gig-economy and the expanding e-payments and e-ecommerce industry. A feasible alternative is the e-payments tax (EPT) which is a very broad-based, tiny tax with an efficient and effective mechanism to raise significant revenue without too much economic distortion or burden on businesses and consumers. A simple 3% e-payments tax would raise RM43 billion, almost enough to replace SST all together. The benefits of a robust fiscal position are many. Raising revenue and controlling spending reduces the need for government borrowing and the financing costs of that which at almost RM50 billion a year are the third largest demand on government spending. Better revenue and reducing wastage, leakages and corruption also provides savings and income that can boost other priorities such as health, education and social protection including income support and retirement pensions. These are not only 'long-term' gains, we are already seeing the possible benefits of the subsidy rationalisation and tax reforms so far worth at least RM34 billion. For example, the budget for cash aid for schemes such as the Sumbangan Tunai Rumah (STR) and Sumbangan Asas Rahmah (Sara) was increased by 30% to RM13 billion in Budget 2025 and almost nine million people benefit from cash transfers through STR. Sara recipients have increased from 700,000 to 5.4 million, each eligible for monthly payments through MyKad. Public healthcare spending rose to RM45.3 billion in Budget 2025, a 9.8% increase compared to the previous year. Education spending hit record levels rising 9.2% in Budget 2025 and even higher education benefitted by an extra 10.4%. These changes directly improve the quality of life for everyone, enhance human capital development and increase productivity for businesses. In the next stages, strategies to cushion the impact of economic change on vulnerable groups become more affordable. These include targeted cash transfers, a universal basic income, a basic pension in retirement, accessible public transport, reducing out-of-pocket expenses for healthcare and investment in the care economy as the population ages. In fact, almost all of the promises of the last election manifestos become possible before the next general election holds the government to account. Increasing revenue must also be accompanied by responsible spending and anti-corruption measures to ensure public trust. A Government Procurement Act and a change in the mindset of policy design to end 'patronage cascades' that channel money to vested interests would both help ease concerns about higher taxes and lower subsidies. Above all, fiscal reforms should continue to be implemented thoughtfully, and to garner public support the government must improve its communication strategy to link fiscal reforms definitively to the social benefits we are already seeing and which are promised for the long-term. The views expressed are those of the writer and do not necessarily reflect those of FMT.

Acting CJ Hasnah summons urgent 3pm JAC meeting, say sources
Acting CJ Hasnah summons urgent 3pm JAC meeting, say sources

Free Malaysia Today

time2 hours ago

  • Free Malaysia Today

Acting CJ Hasnah summons urgent 3pm JAC meeting, say sources

Hasnah Hashim, by virtue of her appointment as acting chief justice, is the current Judicial Appointments Commission chairman. PETALING JAYA : Acting Chief Justice Hasnah Hashim has summoned an urgent meeting of the Judicial Appointments Commission (JAC), the body that proposes judges for appointment and elevation, according to sources. The sources said the meeting is scheduled for 3pm today, although Section 13(2) of the JAC Act 2009 stipulated that 10 days' written notice be given to commission members. Hasnah, who took office yesterday, is the commission's chairman by virtue of her position as the nation's top judge. 'The purpose for meeting on an urgent basis is unclear,' one source told FMT. Sections 13(4) and (5) state that the quorum for the meeting is seven, but in the event of the disqualification of members, the quorum shall be reduced to a minimum of five members. Currently, only seven members remain on the JAC following the mandatory retirement of former chief justice Tengku Maimun Tuan Mat, and Court of Appeal President Abang Iskandar Abang Hashim earlier this week. Hasnah, in her capacity as chief judge of Malaya, and Abdul Rahman Sebli as chief judge of Sabah and Sarawak, are JAC members by virtue of their positions in the judiciary. Former attorney-general Idrus Harun, retired Federal Court judge Zainun Ali, former Sarawak attorney-general Talat Mahmood Abdul Rashid and UiTM legal adviser Hartini Saripan were appointed last year as eminent persons by Prime Minister Anwar Ibrahim. Federal Court judge Zabariah Yusof was appointed to the JAC in March by the prime minister. The JAC is tasked with selecting suitable candidates to sit as judges in the superior courts – the Federal Court, the Court of Appeal, and the High Courts. Sources said a list of candidates for the posts of chief justice, Court of Appeal president, chief judge of Malaya, and chief judge of Sabah and Sarawak have previously been submitted to the Prime Minister's Office during the tenure of Tengku Maimun. Article 122B(1) of the Federal Constitution provides that the appointments are made by the Yang di-Pertuan Agong, acting on the advice of the prime minister, and after consulting the Conference of Rulers. The next conference is scheduled in two weeks.

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