Thailand's 'Yellow Shirts' return to streets to demand PM's resignation
BANGKOK: Hundreds of anti-government protesters gathered outside Thailand's Government House on Thursday (Jun 19), demanding Prime Minister Paetongtarn Shinawatra resign over a leaked phone call with former Cambodian leader Hun Sen that triggered public outrage.
The scandal rocked Paetongtarn's coalition after the Bhumjaithai party, a key partner, pulled out on Wednesday, accusing her of undermining the country and insulting the dignity of the military.
The leaked call, in which Paetongtarn referred to the Thai army's northeastern commander as her opponent and addressed Hun Sen as "uncle" has drawn strong public backlash.
The protest, held in scorching tropical heat, drew mostly elderly demonstrators wearing yellow shirts - the colour strongly associated with Thailand's monarchy - who accused the 38-year-old leader of "lacking diplomatic skills" and "endangering national interests".
"I was very disappointed when I heard the (leaked) audio," Kanya Hanotee, 68, a temple worker told AFP.
"She lacks negotiation skills. Who does she think she is? This country is not hers."
Protesters waved Thai flags and placards labelling Paetongtarn a "traitor", and chanted "Get out!" and "Go to hell!" while dozens of riot police stood nearby.
Many in the crowd were longtime supporters of the conservative, pro-royalist "Yellow Shirt" movement, which has fiercely opposed the Shinawatra political dynasty since the 2000s.
Kaewta, 62, a housewife from Bangkok said she joined Yellow Shirt protests near Bangkok's Democracy Monument two decades ago.
"I didn't support any political party. All I knew was that I hated Thaksin and his family," she told AFP.
"Our politicians are all corrupt."
TWENTY-YEAR BATTLE
The battle between the conservative pro-royal establishment and Thaksin's political movement backed by its own "Red Shirt" supporters has dominated Thai politics for more than 20 years.
Yellow Shirts, backed by Royalists and business elites, led 2008 protests that shut Bangkok's airports, stranded tourists, and helped topple a Thaksin-linked government.
In 2010, pro-Thaksin "Red Shirt" protesters rallied in Bangkok in opposition to the military-backed government, ending in a bloody crackdown that left more than 90 people dead.
"The power has been passed from her father to her aunt, and now to her," said Mek Sumet, 59, an electrical equipment seller who took part in the 2008 Don Mueang airport occupation.
"She doesn't think of the country but only of herself," he told AFP.
The kingdom has had a dozen coups since the end of absolute monarchy in 1932, and the current crisis has inevitably triggered rumours that another may be in the offing.
Despite Thailand's long history of coups, some protestors openly welcomed the idea of another military intervention.
"I want the military to take control," Kanya told AFP.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
Commentary: Thailand and Cambodia share a border. They also share old wounds
SINGAPORE: In a rare breach of diplomatic norms, Cambodia's former leader Hun Sen on Wednesday (Jun 18) released a recording of a private phone call with Thailand's Prime Minister Paetongtarn Shinawatra on social media, escalating political tensions surrounding a long-running border dispute. In the 17-minute audio, Ms Paetongtarn refers to Mr Hun Sen as 'uncle' and urges him to ignore the Thai general overseeing the army in the border area whom she described as being on 'the opposite side'. The remark has fuelled speculation about her relationship with the military, a politically sensitive issue given the army's role in ousting members of her family from power – her father Thaksin in 2006 and his sister Yingluck in 2014. Ms Paetongtarn has since apologised and defended her remarks as a 'technical attempt to calm the country', insisting there is no conflict with the Thai military. Further muddying the waters is the personal history between the two political families. Mr Thaksin and Mr Hun Sen - who is now president of Cambodia's Senate and the father of Cambodia's current Prime Minister Hun Manet - are long-time friends. That neither moved to defuse the situation has prompted speculation about domestic issues in both countries. PERSONAL TIES, POLITICAL STRAIN The two countries appear to have been taking their relations for granted, says Dr Pavin Chachavalpongpun of Kyoto University's Centre for Southeast Asian Studies. 'During good times, leaders would be willing to put aside history, but when a regime becomes vulnerable or encounters domestic challenges, sometimes it is easy and convenient and even legitimate to bring back the wounds of history to divert domestic attention,' Dr Pavin told me. Thailand and Cambodia share an 820km land border, parts of which are still not demarcated, and parts of which include ancient temples that both sides have contested for decades. On May 28, a Cambodian soldier was killed in an exchange of gunfire between both nations' troops at a disputed spot between Cambodia's Preah Vihear province and Thailand's Ubon Ratchathani province, reigniting tensions. The incident triggered the most serious crisis between Cambodia and Thailand in years, with both sides making bristling statements and beefing up troops while scrambling to convene a two-day meeting of their Joint Boundary Commission (JBC) in Phnom Penh – which ended with no conclusion on Jun 15. For Ms Paetongtarn, the crisis is an early test of leadership. Installed last year through a fragile coalition, she inherited both the Shinawatra name and its baggage. Her statement following the JBC - that Thailand 'will not tolerate maltreatment, accusations or threats from any party' - was widely seen as an effort to project firmness. But the leaked phone call and the perception that she had undermined her own army's authority has complicated that stance. She is now facing mounting calls to resign. The conservative Bhumjaithai Party, the second largest in the alliance, pulled out of the coalition on Jun 18, saying Ms Paetongtarn had "damaged the sovereignty and well-being of the country and Thai Army". GRIP OF SHARED HISTORY No one expects a dramatic escalation. 'Neither country can afford a war,' former Thai foreign minister Kasit Piromya told me. But no one expects easy or speedy resolution either, as the issues involved are complex and complicated by domestic nationalism. In fact, like the famed stone ruins of Angkor's Ta Prohm held in place by the tentacles of giant strangler figs, Thailand and Cambodia seem unable to decisively shake off the grip of the perceived wounds of their ironically shared history. Both countries have their own narratives to suit their mutual sense of victimhood and injustice - Cambodia through memories of the glory of its Angkor period lost to colonisation and encroachment by neighbours, and Thailand through a nostalgic view of its own imperial past, particularly the Ayutthaya era. Border disputes are particularly difficult to resolve to both parties' satisfaction because they often represent the legacy of historical conditions that no longer exist, a former Thai ambassador told me. Each side has its own popular narrative formed over decades or centuries, which can metastasize with each retelling until it becomes part of the national identity, spawning chauvinistic memes that later generations with no direct memory of the grievances may nevertheless accept on faith, he said. Any agreements on the border would mean both countries would need to give up some territory, and that would be difficult for their governments to sell to their public. The best one can hope for is that pragmatism wins over emotions. Politics should be removed from efforts to resolve border disputes, governments and opinion leaders should refrain from stoking the flames of nationalism, and quiet diplomacy allowed to take its course. All this is, of course, easier said than done. 'For all the cooperation frameworks in the region, Thailand and some of its neighbours are still in the trust-building phase,' said the former Thai ambassador who spoke with me on condition of anonymity. 'Our proximity means we have a long history together. It also means we need to set aside our feuds and grudges if we are to have a future together.' Nirmal Ghosh, a former foreign correspondent, is an author and independent writer based in Singapore. He writes a monthly column for CNA, published every third Friday.
CNA
an hour ago
- CNA
Malaysia's goods and service tax hike: ‘Necessary' but at what cost to businesses and consumers?
KUALA LUMPUR: Malaysian businesses and consumers already grappling with rising costs and the impact of United States tariffs could face added strain from the country's planned Sales and Service Tax (SST) hike next month, warned industry experts. While Prime Minister Anwar Ibrahim has defended the move as one targeting high-income earners, analysts and business groups said there could be spillover effects on the broader population and economy. 'Even though the sales tax increases are targeted towards non-essential and luxury goods, it may still impact the lower income through the effect of these taxes on the retail sectors,' economist Cassey Lee told CNA. 'The additional tax revenues collected through the higher sales taxes are also likely to be lower given the dampening effect of economic uncertainties on consumption of non-essential and luxury goods,' added Lee, who is a Senior Fellow and Coordinator for the Regional Economic Studies Programme at ISEAS-Yusof Ishak Institute in Singapore. A sales tax rate of 5 per cent or 10 per cent will be imposed on non-essential and luxury goods such as king crab, salmon, imported fruits, racing bicycles and antique artworks from next month, announced the Finance Ministry on Jun 9. The sales tax rate will remain unchanged for essential goods. Meanwhile, a service tax of 6 per cent or 8 per cent will be expanded to include property rentals or leasing, construction, financial services, private healthcare, education and beauty services. Acknowledging the growing public concern, Anwar's political secretary Muhammad Kamil Abdul Munim said that the expansion of the SST will proceed on Jul 1 as planned, but the government is open to revisiting the policy if necessary. The Finance Ministry on Wednesday (Jun 18) projected an additional RM5 billion (US$1.2 billion) in SST revenue from the expansion in 2025 and RM10 billion by 2026. On Sunday, Anwar said that the revenue generated from the tax collection would be used to increase the salaries of civil servants, social aid such as the 'Sumbangan Tunai Rahmah' and to develop infrastructure, local media reported. But the Federation of Malaysian Business Associations (FMBA) said that these gains 'must be weighed against the potential contraction in business activity and consumer spending', urging the government to reconsider and suspend the implementation. CUTBACKS AND HIGHER COSTS FOR CONSUMERS? Industry groups said they recognised the government's fiscal objectives but have voiced concerns over the 'far-reaching and potentially adverse impacts' the tax expansion may impose on small and medium enterprises (SMEs), the wider business ecosystem and Malaysian consumers. 'This move sends the wrong signal to domestic and foreign investors, raising doubts about policy consistency and the government's commitment to fostering a business-friendly environment,' said FMBA in a joint statement with five other major business associations. These are: SME Association of Malaysia, Malaysia Retail Chain Association, Malaysia Retailers Association, Bumiputra Retailers Organization Malaysia and Malaysia Shopping Malls Association. The six groups urged the government to defer the expansion, citing the potential impact on Malaysia's economy. 'Implementing such a broad-based tax hike amid a fragile recovery will exacerbate inflation, cripple SMEs, discourage investment and erode consumer confidence,' the statement dated Jun 15 read. In a separate statement on Tuesday, Abdul Malik Abdullah, chairman of the FMBA, said that SMEs, many of which operate on thin margins and limited cash flow, would face rising input costs due to the 'cascading nature' of the SST. 'Of greater concern is the fact that these economic sectors are involved in producing goods and services for end consumers, and may have to pass down some of the increased costs through market pricing,' a spokesperson from the Malaysian Institute of Economic Research also told CNA. Some business owners are already bracing for the impact. The owner of Salmonly Cafe in Kuala Lumpur, Nor Marsilla Ismail, told CNA that she is considering a menu revamp as she is adjusting prices and recalculating her costs and margins. 'Our bestseller item is the salmon rice bowl so we have to adapt to survive,' she said, noting that salmon prices have not yet increased, but could soon. Salmon is among the 'discretionary goods' that will be subjected to a 5 per cent sales tax rate starting next month. The revised tax framework is also expected to hit the manufacturing sector, particularly with the inclusion of capital goods such as machinery, which FMBA's Abdul Malik said could hinder business expansion and stifle innovation. Echoing these concerns, the Federation of Malaysian Manufacturing had previously highlighted that taxing machinery and equipment - typically considered capital expenditure - would drive up investment costs. Both the Federation of Malaysian Manufacturing and the Federation of Malaysian Business Associations have called for a broader exemption list to protect industry competitiveness. 'This includes items critical to upgrading production lines, automating processes and scaling operations,' said the Federation of Malaysian Manufacturing's president Soh Thian Lai, as quoted by The Edge on Jun 12. 'The imposition of sales tax on capital goods is expected to increase investment costs, potentially delaying business expansion and dampening overall investment appetite across key manufacturing and commercial sectors.' He added that many manufacturers newly affected by the revised SST, especially those previously exempt, would require more time to prepare and comply. In addition, under the expanded scope of service tax, leasing and rental services are now subject to an 8 per cent tax, with exemptions for residential rentals and SMEs with annual rental revenue below RM500,000. Tax partner Jalbir Singh Riar from Ernst & Young Tax Consultants Sdn Bhd (EY) said that the targeted exemptions reflect a 'progressive approach' by the government in balancing the need for increased revenue with socio-economic considerations. Still, industry observers caution that the broader scope of service tax to include rentals could lead to higher operational costs, which will be transferred to consumers through higher prices, potentially weakening consumer demand and discretionary spending. Teh Young Khean, senior executive director at real estate consultancy Knight Frank Malaysia, added that the 8 per cent tax could affect existing tenancy agreements that typically have fixed terms, prompting companies to reassess their real estate strategies. This may result in businesses postponing expansion or relocation plans, or in some cases, downsizing their commercial footprint, he added. 'We anticipate a potential temporary slowdown in leasing activity as most businesses would be affected by the increase in the cost of doing business,' Teh told CNA. STILL 'NECESSARY' TO ENSURE LONG-TERM FISCAL RESILIENCE: EXPERTS Despite the challenges faced by businesses and consumers, economic experts said that the expanded SST is 'necessary' to boost tax revenue collection and enhance Malaysia's fiscal sustainability. The Malaysian Institute of Economic Research noted that Malaysia's tax to gross domestic product (GDP) ratio of below 13 per cent is much lower than the Asia Pacific average of 19.3 per cent in 2022. 'Therefore, we acknowledge that the expansion is necessary as part of overall tax reform considering depleting petroleum revenue and expected reduction in personal income taxes due to an ageing society,' a spokesperson from the institute. Data from the Organisation for Economic Cooperation and Development (OECD) also found that the ratio is much lower than the OECD average of 34 per cent. Malaysia's 2025 fiscal outlook report in August last year estimated that Malaysia's petroleum-related revenue is projected to decline to 18.3 per cent of the total federal revenue in 2025, continuing a downward trend that began in 2009, Free Malaysia Today reported. 'The move aligns with the broader fiscal consolidation agenda, aiming to broaden the tax base, boost revenue collection, and progressively reduce the federal government's budget deficit from 4.1 per cent of GDP in 2024 to 3.8 per cent in 2025,' Singh, the tax partner from EY, told CNA. The Malaysian Institute of Economic Research acknowledged that the base expansion of the SST is being introduced 'during very challenging economic circumstances amid the reciprocal tariffs imposed by the US' on the global front. In the joint statement by the six business associations, the groups highlighted the growing trade uncertainty with the tariffs that could further undermine Malaysia's export competitiveness, especially for SMEs integrated into global value chains. The Malaysian Institute of Economic Research said the government thus has a 'very delicate balancing act' in achieving revenue needs amidst external challenges and concurrently elevating inflation pressure in the economy. 'While the SST expansion is strategically sound, a phased implementation approach would provide businesses with more time to adjust and ensure smoother compliance,' said Singh of EY. Lee from ISEAS said that the government should consider fine-tuning its tax reforms to minimise the potential impact of tax increases on domestic consumption and the retail sector given the external uncertainties which will impact exports and foreign direct investments. Experts also told CNA that the government's move to provide some limited exemptions are 'steps in the right direction' which needs to be further strengthened with additional support measures to help alleviate inflationary pressures on businesses and the people. The six business associations meanwhile have called for a more consultative approach that prioritises business stability, national competitiveness and long-term growth. 'It is imperative that any tax policy or adjustment be approached with empathy and practicality, with the aim of ensuring that it does not become an added burden on already struggling enterprises,' the statement read, as quoted by the New Straits Times. The group of business associations has slammed the SST framework for lacking transparency and efficiency as compared to the previous Goods and Services Tax (GST), which avoided cascading taxation across supply chains. Cascading tax is a type of tax that's imposed at each stage of a product's journey along the supply chain. According to the groups, the SST model is unsustainable for SMEs operating on thin margins, discouraging investment, expansion and job creation, as reported by the New Straits Times. Anwar has defended the government's position, saying that it is not ready to reintroduce the GST as it is a broad-based tax that would affect all segments of society, especially the poor. 'GST taxes everybody. While it is efficient and straightforward, just 6 per cent across the board, I must ask, if everyone has to pay 6 per cent, why should the poor and the unemployed be taxed as well?' he said on Jun 15, as quoted by local media. WILL THE EXPANDED SST AFFECT ANWAR'S POLITICAL SUPPORT? The proposed tax expansion was announced by Anwar, who is also the finance minister, during the tabling of Budget 2025 in October last year. Although implementation was initially scheduled for May 1, full details of the revised scope were only confirmed on Jun 9. Some observers told CNA that the move could have political repercussions, especially among the urban middle class. 'If domestic consumption is severely impacted, this will reverberate to the lower-income population through unemployment,' Lee from ISEAS told CNA. However economic expert Ida Md Yasin from Putra Business School in Malaysia said that the SST expansion is 'only one of several factors' that will shape public support for Anwar. The finance ministry has announced that penalties against companies for non-compliance with the tax's legal requirements will not be imposed until Dec 31. Anwar's political secretary Muhammad Kamil has also reiterated the government's flexibility in responding to public concerns. 'This is not divine law, it's human legislation. So, there's no issue if adjustments or improvements are needed. What's important is that the majority of the people are not burdened by this expansion,' he said, as quoted by Malay Mail.
CNA
10 hours ago
- CNA
38th Asia-Pacific Roundtable: Malaysia calls on Thailand and Cambodia to de-escalate tensions
ASEAN chair Malaysia has called on Cambodia and Thailand to de-escalate tensions following their recent diplomatic flare-up. Malaysian Prime Minister Anwar Ibrahim is doubling down on calls for a more inclusive and predictable security framework in the region. CNA's Afifah Ariffin reports from the 38th Asia-Pacific Roundtable in Kuala Lumpur.
