Thailand's whopping US$115bil budget clears first parliamentary hurdle
BANGKOK (Bloomberg): Thailand's lower house of parliament backed a 3.78 trillion baht ($115 billion) annual budget as Prime Minister Paetongtarn Shinawatra's multi-party coalition buried differences to support the spending plan.
The budget bill for the fiscal year starting Oct. 1 was supported by 322 lawmakers in its first reading in the 500-member House of Representatives on Saturday. A total of 158 lawmakers voted against it following a four-day debate.
The budget proposals will next be sent to a committee for further scrutiny before being returned to the house in August for its second and third readings.
The budget's passage could help ease concerns over the stability of Paetongtarn's government after the top two parties in her coalition publicly feuded over some key policy proposals.
The conservative Bhumjaithai Party, the second-largest group in the ruling bloc, has been squabbling with Paetongtarn's Pheu Thai party over issues including a plan to open casinos.
Paetongtarn and Deputy Prime Minister Anutin Charnvirakul, who heads Bhumjaithai, have denied there are irreconcilable differences.
Thaksin Shinawatra, who is the de facto leader of Pheu Thai and father of the prime minister, has also dismissed fears of a coalition collapse.
The prime minister has defended a marginal increase in spending next year and a budget deficit of 860 billion baht, saying the outlays are designed to factor in increased risks to the economy from the current global trade uncertainties.
The potential hit from a threatened 36% tariff on Thai exports to the US has already prompted the state planning agency to revise down its economic growth forecast this year by a full percentage point.
The central bank, which cut interest rates in back-to-back meetings, has said it has limited room for further easing, leaving the onus of shoring up the economy to fiscal policymakers.
-- ©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Cambodia demands Thais investigate border shooting, slated to take border dispute to ICJ
A 48-year-old Cambodian soldier was shot dead in a brief exchange of fire on May 28. - Supplied via PPP/ANN PHNOM PENH: The Cambodian government plan to bring its border dispute with Thailand to the International Court of Justice (ICJ) has garnered support from the former prime minister and the general public, while the Ministry of Foreign Affairs and International Cooperation has demanded that Thailand investigate the May 28 shooting that killed a Cambodian soldier, describing it as a 'cruel and illegal act'. On Monday night (June 1), Prime Minister Hun Manet announced on social media that Cambodia will take the border issue, particularly involving the areas around the Ta Moan Thom, Ta Moan Toch and Ta Kra Bei temples, to the ICJ in the Hague. He stated that Cambodia has consistently pursued the peaceful resolution of border disputes through technical mechanisms and international law. An urgent meeting of the Joint Border Committee (JBC) with Thailand will be held to address the issue and continue demarcation and border marker placement between the two countries. '[Cambodia] is preparing to include the issue of Ta Moan Thom Temple, Ta Moan Toch Temple, Ta Krabey Temple and the Mum Bei area on the JBC meeting agenda, to bring these matters directly to the ICJ,' he said. He said despite continuing peaceful cooperation with Thailand, such as border demarcation based on international legal standards, Cambodia 'reserves the right to protect its territorial integrity by all means, including the use of armed force, in case of any attempt to violate Cambodia's territorial integrity through military force.' Following this statement, former Prime Minister Hun Sen, now president of the Senate, issued a message supporting plans to take the case to the ICJ. 'Earlier, Cambodian Prime Minister Hun Manet confirmed that the issues of Mum Bei, Ta Moan Thom Temple, Ta Moan Toch Temple and Ta Kra Bei Temple will be brought to the ICJ. I fully support this, as the 2000 MOU has made little progress, leading to ongoing ambiguity, mutual accusations and multiple armed clashes,' he said, via social media. 'If Thailand is sincerely committed to resolving this issue, it should agree to jointly bring the matter to the ICJ for a ruling, without Cambodia needing to file a case. We await Thailand's stance on this — will they dare or not?' he added. He encouraged the Kingdom's armed forces to remain patient but also be prepared to counter any form of aggression. The move to take the case to the ICJ has received widespread public support on social media. In a May 29 diplomatic note to the Thai Embassy, the foreign ministry stated that Thai soldiers attacked Cambodian forces at a post in Techo Morodok village, Morodok commune, Choam Ksan district, Preah Vihear province, resulting in the 'unjust' death of a Khmer soldier at 5.30am on May 28. The ministry clarified that Cambodia has maintained its presence at that location for a long time, predating a 2000 memorandum of understanding (MoU) on border demarcation and marker placement. The ministry protested the shooting. 'The Royal Government of Cambodia demands an urgent and thorough investigation into this violent incident. Those responsible for this cruel and illegal act must be brought to justice,' said the note. - The Phnom Penh Post/ANN
The Star
2 hours ago
- The Star
Hong Kong bankers on edge over US$11bil loan
The stakes are so high that in many cases, the banks' chief risk officers have stepped in. — Bloomberg HONG KONG: Hong Kong bankers have become fixated on an US$11bil loan deal with unusually high stakes for the financial hub. New World Development Co (NWD), an embattled property developer controlled by one of Hong Kong's richest families, is aiming to complete one of the city's largest-ever corporate refinancing deals with more than 50 banks by the end of June after pushing back an initial deadline for this month. So far, at least 12 banks have agreed to terms while the rest are still talking, according to sources. Failure to reach a deal could lead to demands for immediate repayment. The repercussions would threaten both NWD and many of the banks which are already suffering from a sharp rise in non-performing loans from commercial real estate. The stakes are so high that in many cases, the banks' chief risk officers have stepped in, sources said. Even chief executive officers of banks are closely monitoring the situation with frequent updates, the people added, asking not to be identified as the matter is private. 'A NWD failure wouldn't break the system, but that destabilisation could be contagious,' said Brock Silvers, managing director at private equity firm Kaiyuan Capital. 'A 'delay & pray' strategy would buy time while doing little to alleviate underlying risk to the company or Hong Kong's broader financial system.' NWD aims to secure HK$87.5bil in refinancing. It has commitments exceeding HK$20bil from Bank of China Ltd, HSBC Holdings Plc and Standard Chartered Plc, local lenders Bank of East Asia Ltd, Fubon Bank (Hong Kong) Ltd, Hang Seng Bank Ltd and French lender Credit Industriel et Commercial SA along with several other financial institutions. NWD did not respond to a request for comment. The other banks are in the process of securing internal credit approvals. A deal of this magnitude can take time as credit committees scrutinise every detail, raising numerous questions to evaluate the risks involved. Some banks are waiting for lenders with greater exposure to sign on before they can secure their own internal approvals, said the sources. A couple of other top Chinese, Japanese and Singaporean banks are in the final stages of approving the loan, according to sources. 'If one or two lenders in the syndicate are unwilling to commit, will the others in the syndicate be willing to take up the rest of the refinancing? 'If yes, the impact to the banking sector would be limited,' said Cusson Leung, chief investment officer for KGI Asia. — Bloomberg
The Star
3 hours ago
- The Star
Thai Airways partners with airlines to boost US tourism, drops direct flight plans
BANGKOK: Thai Airways International (THAI) has reaffirmed its readiness to attract American tourists to Thailand through collaboration with airline partners, despite shelving plans for direct flights to the United States. THAI CEO Chai Eamsiri explained that the Federal Aviation Administration has recently upgraded Thailand's aviation safety rating from Category 2 (CAT2) to Category 1 (CAT1), placing it among countries that meet international aviation standards. As a result, Thai airlines are once again permitted to operate direct flights to US airspace. However, after conducting a feasibility study on resuming direct flights to the United States, THAI found the long-haul routes to be economically unviable due to the substantial fuel costs involved. Additionally, return flights from the US would require a reduction of more than 100 passenger seats, while cargo transport would be severely restricted due to fuel constraints limiting payload capacity. "From past flight data, THAI operated in the US market for over a decade, but consistently recorded losses. Even after adjusting strategies, including stopovers, profitability remained elusive,' he said. 'The long distances to destinations like Los Angeles and New York—requiring 17-hour flights—result in high operational costs. Today, after reassessment, we concluded that resuming direct flights would remain financially impractical." Chai further noted that despite direct flights being discontinued, THAI still maintains a presence in the American market. Currently, 30 per cent of its revenue comes from European travellers, followed by Asia, while the US market remains promising. By leveraging partnerships with six American airlines that operate within the region, THAI has managed to sustain revenue growth in the US market, he affirmed. - The Nation/ANN
