Floods become test for Thailand’s premier ahead of elections

BANGKOK – Thailand’s government announced fresh relief measures for victims of

one of the country’s worst floods in decades

on Dec 1, weeks ahead of an expected call for snap elections. 

Finance Minister Ekniti Nitithanprapas said households affected by the disaster would each receive 9,000 baht (S$364.60) as officials race to contain both economic losses and criticism of the Government’s response. 

State-owned banks will offer a one-year moratorium on principal and interest payments for borrowers in flood-hit areas and extend interest-free loans of up to 100,000 baht for a 12-month period to existing clients whose homes or livelihoods have been affected, Mr Ekniti said. 

Small and medium businesses will be provided with low-interest soft loans, backed by the Thai Credit Guarantee Corp, according to Mr Ekniti.

The flooding has killed 176 people, inundated towns and disrupted life for more than 2 million households in southern Thailand, with Songkhla province hit the hardest.

Thais have criticised the authorities for their slow and uneven response and government officials have acknowledged mistakes in managing the crisis. 

The economic fallout is mounting. Krungsri Research estimates total economic losses at up to 23.6 billion baht, with hotels and restaurants among the worst affected.

Damage to rubber and palm oil output – major industries in the region – could reach 6.7 billion baht in just one month, according to Kasikorn Research Center. 

The floods have also struck at the beginning of the peak tourism season, with the south particularly popular with visitors from Malaysia. 

The crisis comes as Prime Minister Anutin Charnvirakul prepares to

dissolve parliament by the end of January

and trigger elections - part of a deal agreed with opposition parties that allowed him to form a government in September.

His government’s response to the flooding, as well as how quickly relief reaches affected communities, may shape public sentiment ahead of the vote. BLOOMBERG