Latest news with #Paetongtarn
The Star
a day ago
- Business
- The Star
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.
Straits Times
3 days ago
- Politics
- Straits Times
Thai, Cambodian army chiefs to meet over border clash
An exchange of gunfire between Cambodian and Thai troops along their disputed border resulted in the death of one Cambodian soldier. PHOTO: EPA-EFE Bangkok - The military chiefs of Thailand and Cambodia will meet on May 29, both governments said, after a Cambodian soldier was killed in a border clash. Thailand's Prime Minister Paetongtarn Shinawatra told reporters on May 29 that 'both sides should remain calm and discuss to see what we can agree', and called for peaceful discussion. Her Cambodian counterpart Hun Manet wrote on Facebook that he hoped the meeting between the two army commanders 'will yield positive results'. Thai Defence Minister Phumtham Wechayachai told journalists the talks will be held on May 29 afternoon, adding that there had been a 'misunderstanding by both sides'. A Cambodian soldier was killed on May 28 during an exchange of gunfire with the Thai army at the border, a Cambodian army spokesman said. His death – a rare fatality along the long-sensitive frontier – came after Cambodian and Thai leaders attended a South-east Asian summit where the regional Asean grouping vowed greater cooperation. Thailand's military said May 28 that its soldiers fired in response to gunshots from Cambodia's border force, leading to an exchange lasting around 10 minutes before the Thai saide said the Cambodians requested a ceasefire. Cambodian Royal Army spokesman Mao Phalla confirmed the clash on May 28, but said Thai soldiers had attacked Cambodian troops who were on border patrol duty in northern Preah Vihear province. 'Our soldier died in the trenches. The Thais came to attack us,' he said. 'Remain calm' Cambodia and Thailand have long been at odds over their more than 800km-long border, which was largely drawn during the French occupation of Indochina. Bloody military clashes between the South-east Asian neighbours erupted in 2008 over the Preah Vihear temple near their shared border. The row over a patch of land next to the 900-year-old temple led to several years of sporadic violence, resulting in at least 28 deaths before the International Court of Justice ruled the disputed area belonged to Cambodia. In February, Bangkok formally protested to Phnom Penh after a video of women singing a patriotic Khmer song in front of another disputed temple was posted on social media. On May 29, influential former Cambodian prime minister Hun Sen – Mr Hun Manet's father, and an ally of Ms Paetongtarn's father, ex-Thai premier Thaksin Shinawatra – urged calm and a peaceful resolution to the ongoing border issues between the two countries. Ms Paetongtarn travelled to Cambodia in April for a two-day visit, during which she met Mr Hun Manet to discuss cross-border cooperation on issues such as online scams and air pollution. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
The Star
4 days ago
- Business
- The Star
Thai PM proposes 115 bln USD budget to parliament to boost economy
BANGKOK, May 28 (Xinhua) -- Thai Prime Minister Paetongtarn Shinawatra on Wednesday proposed the government's 3.78 trillion baht (115.66 billion U.S. dollars) budget for the 2026 fiscal year to parliament, aiming to shore up a sluggish economy amid global trade tensions. The draft bill projects a 0.7 percent increase in expenditure and a budget deficit of 860 billion baht (about 26.31 billion dollars), marking a 0.7 percent decline from fiscal 2025 that ends in September. Paetongtarn emphasized that the budget reflects her administration's commitment to driving sustainable economic recovery, enhancing national infrastructure, strengthening social equality, and maintaining fiscal discipline. In light of revenue limitations and the challenging global landscape, the government has adopted a deficit budget policy, with key focuses on strengthening national security, enhancing competitiveness, and developing human capital, she told a parliamentary session. According to the budget plan, Thailand's gross domestic product growth for both 2025 and 2026 is forecast at 2.3 percent to 3.3 percent, with inflation expected at 0.5 percent to 1.5 percent. The Southeast Asian nation's economic outlook is supported by increased public investment, domestic consumption, and a rebound in the vital tourism sector, Paetongtarn noted. However, growth remains constrained by high levels of household and corporate debt, as well as risks stemming from U.S. trade protectionism, geopolitical tensions, and volatility in the agricultural sector, the prime minister said. A four-day debate in the lower House of Representatives is set to conclude on Saturday, and the bill requires support from the majority of lawmakers present to pass its first reading.
The Star
4 days ago
- Business
- The Star
Thai PM presents US$115 billion budget to parliament to support lacklustre economy
Thailand's Prime Minister Paetongtarn Shinawatra arrives ahead of a no-confidence vote at the parliament in Bangkok, Thailand, on Mar 26, 2025. - Photo: Reuters BANGKOK: Thai Prime Minister Paetongtarn Shinawatra on Wednesday (May 28) proposed a 3.78 trillion baht (US$115.5 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep US tariffs. The draft budget bill, which is being debated in the house over the next four days, projects a 0.7% rise in spending, and a 0.7% drop in the budget deficit to 860 billion baht, or 4.3% of gross domestic product, from the 2025 fiscal year that ends in September. The proposed budget "aims to revive and drive the economy toward sustainable growth while improving the quality of life for the people in all aspects," Paetongtarn told parliament. "Given the constraints on revenue and the global economic situation, the government is pursuing a deficit budget policy to maintain economic stability." The budget plan projects growth at 2.3% to 3.3% for both 2025 and 2026, with inflation predicted at 0.5% to 1.5%. The economy expanded 2.5% last year, lagging regional peers. The plan did not take into account the potential impact of US tariffs on its goods, which will be at 36% if a reduction cannot be negotiated before a moratorium expires in July. The United States is Thailand's biggest export market. Southeast Asia's second-largest economy expanded an annual 3.1% in the first quarter, but the state planning agency last week slashed its full-year growth forecast range by a percentage point to 1.3% to 2.3% because of the US tariffs. Opposition leader Natthaphong Ruengpanyawut accused the government of lacking a strategy for its spending. "The concerning issue is not the borrowing itself but rather that the government is overspending without an investment plan or revenue strategy to support it," he said. The bill will be put to a vote of parliament on Saturday (May 31), which will require support from the majority of lawmakers present. The budget is expected to pass, but comes amid tensions in the Pheu Thai Party-led coalition, particularly with its biggest partner, the Bhumjaithai Party. Disagreements have surfaced over the government's casino bill, which aims to legalise casinos within integrated complexes to boost tourism. Rifts over constitutional reform and policy on the use and sale of cannabis, which was decriminalised in 2022 but is now facing tighter restrictions, have also strained the alliance. If the budget does not pass, Paetongtarn, who came to power last year, could either step down and make way for a new premier elected by parliament, or dissolve the house and call a new general election. - Reuters
Business Times
4 days ago
- Business
- Business Times
Thailand PM to propose 3.78 trillion baht budget to parliament to support lacklustre economy
[BANGKOK] Thailand Prime Minister Paetongtarn Shinawatra will on Wednesday (May 28) propose a 3.78 trillion baht (S$149 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep US tariffs. The draft budget Bill, which will be debated in the house over the next four days, projects a 0.7 per cent rise in spending, and a 0.7 per cent drop in the budget deficit to 860 billion baht, or 4.3 per cent of gross domestic product, from the 2025 fiscal year that ends in September. 'A deficit budget policy is aimed at maintaining economic stability, including supporting a recovery and promoting growth at an appropriate level,' the Bill said. The budget plan projects growth at 2.3 to 3.3 per cent for both 2025 and 2026, with inflation predicted at 0.5 to 1.5 per cent. The economy expanded 2.5 per cent last year, lagging regional peers. The plan did not take into account the potential impact of US tariffs. Thailand faces a 36 per cent US tariff if a reduction cannot be negotiated before a moratorium expires in July. The US, Thailand's biggest export market, has set a 10 per cent baseline tariff for most countries while the moratorium is in place. Parliament will deliberate on the bill in the remainder of this week before it is put to a vote on Saturday, which will require support from the majority of lawmakers present. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The budget is expected to pass, but comes amid tensions in the Pheu Thai Party-led coalition, particularly with its biggest partner, the Bhumjaithai Party. Disagreements have surfaced over the government's casino bill, which aims to legalise casinos within integrated complexes to boost tourism. Rifts over constitutional reform and policy on the use and sale of cannabis, which was decriminalised in 2022 but is now facing tighter restrictions, have also strained the alliance. If the budget does not pass, Paetongtarn, who came to power last year, could either step down and make way for a new premier elected by parliament, or dissolve the lower house and call a new general election. South-east Asia's second-largest economy expanded an annual 3.1 per cent in the first quarter, but the state planning agency last week slashed its full-year growth forecast range by a percentage point to 1.3 to 2.3 per cent because of the US tariffs. REUTERS
