BANGKOK - Thailand’s King has approved former corporate energy executive and bourse chair Pichai Chunhavajira as finance minister, taking over the role from Prime Minister Srettha Thavisin, the official Royal Gazette said on April 28.
The 75-year-old, who has been Mr Srettha’s adviser, was the chairman of the board of Bangchak Corp, a post he had held since 2012.
He headed the board of the Stock Exchange of Thailand for less than three months in 2024 and was on the central bank board from 2014 to 2017.
Also taking on the role of deputy prime minister, Mr Pichai will face a tough task of reviving South-east Asia’s second-largest economy, which lags behind its regional peers, as it faces high household debt and borrowing costs, as well as China’s slowdown.
Gross domestic product unexpectedly shrank in the final quarter of 2023 from the third, while growth in 2023 slowed to 1.9 per cent from 2.5 per cent in 2022.
The state planning agency in February cut its 2024 growth forecast to between 2.2 per cent and 3.2 per cent from a previous 2.7 per cent to 3.7 per cent projection.
Mr Pichai will oversee policies including Mr Srettha’s flagship 500 billion baht (S$19 billion) handout scheme, which would transfer 10,000 baht each to 50 million Thais to spend in their communities.
The controversial stimulus has been delayed to late 2024 due to a lack of funding and concerns about the impact on public debt, with economists and some former central bank governors criticising it as fiscally irresponsible.
The government, rejecting that criticism, is forging ahead with the scheme, although the central bank recommends it be targeted only towards vulnerable groups.
Mr Srettha, a real estate mogul and political newcomer, has been finance minister since taking office in 2023.
He has been at loggerheads with the Bank of Thailand over the direction of monetary policy, repeatedly asking it to cut rates to help an economy he describes as at a “critical” stage.
The central bank has resisted that pressure, leaving its key interest rate unchanged at 2.5 per cent, the highest in more than a decade, for a third straight meeting in April. Its next rate review is on June 12.
Analysts said Mr Pichai’s seniority and political and economic knowledge should help policy coordination with the central bank.
He holds a master’s degree in business administration from Indiana University of Pennsylvania and also served as director at PTT Exploration and Production from 2001 to 2013.
This is the first Cabinet revamp by Mr Srettha, less than a year into his tenure after he was appointed following a months-long post-election impasse.
Other changes include Finance Ministry Secretary Paopoom Rojanasakul’s promotion to deputy finance minister.
Tourism Minister Sudawan Wangsuphakijkosol and Culture Minister Sermsak Pongpanit swopped roles, while Mr Somsak Thepsuthin replaced Mr Cholnan Srikaew as health minister.
Local media also reported that Foreign Minister Parnpree Bahiddha-Nukara has abruptly resigned after losing the role of deputy prime minister.
In a letter to the Prime Minister, Mr Parnpree wrote that he would resign from the foreign ministry and other positions starting from April 28, Bangkok Post reported. REUTERS, BLOOMBERG
