
Thai PM scrambles to save coalition after military fallout
BANGKOK: Thai Prime Minister Paetongtarn Shinawatra will on Friday visit an army commander she called an "opponent" in a leaked phone call as she battles to defuse a crisis threatening to topple her government.
The 38-year-old leader, in office for less than a year, was forced to make a public apology on Thursday as anger flared over the call with former Cambodian leader Hun Sen that appeared online.
Her main coalition partner, the conservative Bhumjaithai party, pulled out on Wednesday saying she had insulted the country and the army, putting her government on the point of collapse.
There was better news for Paetongtarn, daughter of controversial billionaire ex-PM Thaksin Shinawatra, on Friday as another important coalition partner, the conservative Democrat Party, pledged to stay.
"The Democrat Party will remain in the government to help resolve the challenges the country is currently facing," the party said in a statement.
Another coalition party, Chartthaipattana, said late on Thursday that it would not withdraw, after urgent talks on the crisis with the Democrats and the United Thai Nation (UTN) party.
With the departure of Bhumjaithai, the government led by Paetongtarn's Pheu Thai party now holds a razor-thin majority in parliament.
Losing another major partner would likely see the government collapse, plunging the kindgom into fresh political instability as it grapples with a stuttering economy and US President Donald Trump's threatened trade tariffs.
Paetongtarn will travel to Thailand's northeast on Friday to patch things up with Lieutenant General Boonsin Padklang, the commander of the forces in northeast Thailand, where the border clashes took place.
She referred to Boonsin as her "opponent" in the leaked call with Hun Sen, in which the two leaders discussed the ongoing border dispute.
Thailand has formally protested to Cambodia about the leak, calling it a breach of diplomatic protocol that had damaged trust between the two sides.
Paetongtarn was criticised as being weak and deferential in the call with Hun Sen, a veteran politician known as a wily operator, but her comments about the army commander were potentially the most damaging to her.
Thailand's armed forces have long played a powerful role in the kingdom's politics and politicians are usually careful not to antagonise them.
When she made her public apology for the leaked call on Thursday, Paetongtarn did so standing in front of army and police chiefs, in a show of unity.
There were small street protests on Thursday and calls from across the political spectrum for her to quit or announce an election, but her apology and backing from some of her coalition partners appear to have shored up her position for now.
But with a tiny majority she remains vulnerable, not least because of the awkward nature of her coalition.
Paetongtarn took office in August last year at the head of an uneasy alliance between Pheu Thai and a group of conservative, pro-military parties whose members have spent much of the past 20 years battling against her father.
Thaksin, twice elected PM, was thrown out in a military coup in 2006, and the bitter tussle between the conservative, royalist establishment and the political movement he founded has dominated Thai politics throughout that time.
Former Manchester City owner Thaksin, 75, still enjoys huge support from the rural base whose lives he transformed with populist policies in the early 2000s.
But he is despised by Thailand's powerful elites, who saw his rule as corrupt, authoritarian and socially destabilising.--AFP

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Malay Mail
3 hours ago
- Malay Mail
Leaked call fallout: Thai PM meets army commander as allies threaten to walk
BANGKOK, June 20 — Thai Prime Minister Paetongtarn Shinawatra held make-up talks today with an army commander she criticised in a leaked phone call as she struggled to defuse a crisis threatening to topple her government. The daughter of controversial billionaire ex-PM Thaksin Shinawatra and in office for less than a year, Paetongtarn is facing calls to quit or announce an election as anger flares over the call with former Cambodian leader Hun Sen. Her main coalition partner, the conservative Bhumjaithai party, pulled out on Wednesday, saying she had insulted the country and the army and leaving her government on the point of collapse. She suffered another blow today as reports emerged that another coalition partner was threatening to quit unless she stepped down as prime minister. The crisis has sent the Thai stock market plunging to a five-year low and comes as the kingdom struggles to fire up its sluggish economy, with US President Donald Trump's threatened trade tariffs looming. Paetongtarn, 38, visited troops in north-east Thailand today to patch things up with Lieutenant General Boonsin Padklang after she was caught disparaging him as an 'opponent' during the call with Hun Sen. Boonsin commands Thai forces along the border with Cambodia, where a long-running dispute flared into deadly clashes last month, and Paetongtarn's criticism of him drew accusations of disloyalty from right-wing nationalist critics. Paetongtarn said after their meeting that the matter was settled. 'It went very well. I've spoken to the commander and there's no longer any issue,' she told reporters. For his part, Boonsin said 'everything is normal'. Ultimatum The meeting with Boonsin followed a public apology from Paetongtarn — at a news conference flanked by military and police chiefs — yesterday as pressure on her mounted. Paetongtarn was criticised as being weak and deferential in the call with Hun Sen, a veteran politician known as a wily operator, but her comments about the army commander were potentially the most damaging to her. Thailand's armed forces have long played a powerful role in the kingdom's politics and politicians are usually careful not to antagonise them. The apology and apparent reconciliation with the army commander may not be enough to save Paetongtarn's premiership. The departure of Bhumjaithai has left the government's coalition with a razor-thin majority in parliament and losing another partner would likely see it collapse. There was a glimmer of good news for Paetongtarn on Friday morning as the conservative Democrat Party pledged to stay in the coalition. However, Public broadcaster ThaiPBS reported that the United Thai Nation (UTN) party, which has 36 seats and is now the biggest party in the coalition after Pheu Thai, is considering quitting. The broadcaster said UTN was going to issue an ultimatum to Paetongtarn: either she quits as premier or they withdraw, bringing down the government. There are also suggestions of a split within UTN, but the government's majority is now so small that it could be fatal even if only half the party's MPs leave. Protest threat Paetongtarn may also be facing the prospect of street protests, as political activists involved in huge demonstrations that helped sink previous leaders linked to her family called for her to go. The activists have called for a rally in central Bangkok on Saturday and another on June 28, although it remains to be seen whether Paetongtarn will survive that long. She took office in August last year at the head of an uneasy alliance between Pheu Thai and a group of conservative, pro-military parties whose members have spent much of the past 20 years battling against her father. Thaksin, twice elected PM, was thrown out in a military coup in 2006 and the bitter tussle between the conservative, royalist establishment and the political movement he founded has dominated Thai politics throughout that time. Hun Sen, Cambodia's longtime ruler who stepped down in 2023 and had close ties with Thaksin, said today that the row over the leaked call had 'shattered' more than '30 years of heartfelt bonds between our two families'. — AFP


New Straits Times
4 hours ago
- New Straits Times
Thai PM faces call to step down to avert coalition revolt
BANGKOK: Thailand's embattled Prime Minister Paetongtarn Shinawatra was facing the prospect of losing her government's majority on Friday, as a vital coalition partner looked set to demand her resignation after just 10 months in power. Paetongtarn, the politically inexperienced daughter of divisive tycoon and former premier Thaksin Shinawatra, is fighting fires on multiple fronts — struggling to breathe life into a stagnant economy facing steep US tariffs, and under pressure to take a tougher stand on a territorial row with Cambodia that has seen their troops mobilise at the border. The United Thai Nation party, the second-largest partner in her alliance, will demand Paetongtarn, 38, step down as a condition for it to remain in the Pheu Thai Party-led coalition, two UTN sources told Reuters, requesting anonymity because they were not authorised to speak to the media. "If she doesn't resign, the party would leave the government," one source said. "We want the party leader to tell the PM as a courtesy." Though Paetongtarn received a boost on Friday with another coalition partner, the Democrat Party, pledging its support, Thailand's youngest premier is still in an untenable position, with her majority hinging on UTN staying in the alliance following Wednesday's exit by the larger Bhumjaithai Party. UTN has not said when it will announce its position. Asked about its decision, UTN spokesperson Akaradej Wongpitakroj declined to provide details. "We have to wait for the party leader to inform the prime minister first," he said. Reflecting concerns in financial markets, the Thai baht (THB=TH) weakened for a fifth consecutive session on Friday and was on course to log its worst week since late February. Tumultuous Past Paetongtarn's battle to stay in power demonstrates the declining strength of Pheu Thai, the populist juggernaut of the billionaire Shinawatra family that has dominated Thai elections since 2001, enduring military coups and court rulings that have toppled multiple governments and prime ministers. But she is now facing domestic anger and the prospect of an internal revolt over Wednesday's embarrassing leak of a phone call between her and Cambodia's influential former leader Hun Sen — once seen as a Shinawatra family ally — which her critics say posed a threat to Thailand's sovereignty and integrity. During the conversation, Paetongtarn called for a peaceful resolution of the border dispute and disparaged an outspoken Thai army general who she said "just wants to look cool" — a red line in a country where the military has a high profile and significant political clout. Political activists met on Friday to schedule a major protest in Bangkok starting on June 28 to demand Paetongtarn resign and coalition partners leave the government. Those included groups with a history of crippling rallies against Shinawatra administrations. Paetongtarn has not commented on the turmoil in her government and has tried to present a united front on the Cambodia issue, appearing on Thursday alongside military chiefs and vowing to defend sovereignty. The premier will make a morale-boosting visit to military units at the Cambodia border on Friday, where she is due to meet Lieutenant General Boonsin Padklang, the regional commander whom she criticised in the leaked call. Paetongtarn's options for staying in power are limited unless her allies can succeed in behind-the-scenes horse-trading to keep her alliance from crumbling. A snap election could damage Pheu Thai at a time of dwindling popularity and play into the hands of the progressive opposition People's Party, the largest force in parliament.

The Star
4 hours ago
- The Star
Thailand's economy teeters as political turmoil threatens recovery efforts
BANGKOK: Thailand's economy is already on the ropes. Consumption has remained tepid despite a government stimulus programme, few of its economic engines are firing, and uncertainty wrought by US President Donald Trump's reciprocal tariffs means that the Thai economy could grow just over 1% this year. Now, South-East Asia's second-largest economy faces a fresh challenge: a new round of political chaos that can bring down Prime Minister Paetongtarn Shinawatra or her ruling Pheu Thai party. "We are currently in a period of economic downturn, with many issues affecting us," Visit Limlurcha, vice chairman of the Thai Chamber of Commerce, told Reuters. "This could make things even more complicated." The most significant short-term concern is the passage of a 3.78 trillion baht (US$115 billion) budget for the 2026 fiscal year, which starts on Oct 1, that must pass through parliament over the next few months. That process could get stalled if Paetongtarn, who is under siege for her handling of a festering border row with neighbouring Cambodia, dissolves parliament and triggers fresh elections. "If parliament is dissolved before the budget is passed, the process will be delayed significantly," said Prakit Siriwattanaket, managing director of Merchant Partners Asset Management. Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, and sluggish demand from China, which is also a key tourism market. It expanded 2.5% last year, and growth could be further halved this year due to US tariffs, Finance Minister Pichai Chunhavajira said last month. Thailand's stock market has been the worst performing bourse in Asia so far this year, down 23.4%. Industrial sentiment also hit its lowest in eight months in May, even as consumer confidence dropped to a 27-month low. There is a clear need to press ahead with government spending, which has dropped by over 38% annually during April-May 2025, OCBC economists Lavanya Venkateswaran and Jonathan Ng said in a report on Thursday, warning of a "double whammy" for the economy if both government expenditure and exports weaken. Amid the ongoing tumult, Paetongtarn may be able to hang on to her premiership and a coalition led by her Pheu Thai party could retain its majority, albeit in a weaker position compared to its previous grip on the parliament. Such an arrangement will prolong political instability and raise the spectre of street protests, which have been part of previous crises and could hit one of Thailand's key remaining economic engines: tourism. "I'm worried. I don't want the situation to cause people to take to the streets," Thienprasit Chaiyapatranun, President of Thai Hotels Association, which represents around 1,000 hospitality establishments, told Reuters. "If they take to the streets, it will hit tourism." Activists - including those who have in the past agitated against Paetongtarn's father, the divisive former premier Thaksin Shinawatra - met on Friday (June 20) to plan a major protest next week, and demanded the prime minister's resignation. A government lacking full authority may also struggle in ongoing trade negotiations with the United States, which has threatened to impose a 36% tariff rate on imports from Thailand, said Natapon Khamthakrue, an analyst at Yuanta Securities. "The United States certainly would not want to talk to a government without full power or with few votes," he said. Some business chambers and analysts are, nonetheless, holding out hope that a political resolution can be found quickly, minimising damage to the Thai economy, which has been rattled by multiple coups in the last eight decades, including two against governments led by the Shinawatra family. "Although the economy is no stranger to political uncertainty," OCBC's economists said, "the timing could not be more inconvenient considering external headwinds." - Reuters