Thai PM Srettha To Hold Finance Minister Post In Rare Move

(Bloomberg) -- Thailand's new Prime Minister Srettha Thavisin unveiled a cabinet line-up that sees him also assume the post of finance chief, a rare move as focus turns to his government's plans to revive the economy.

Phumtham Wechayachai was appointed commerce minister, Pirapan Salirathavibhaga was named energy minister and Pimpatra Wichaikul will be the industry minister, according to a gazette notification on Saturday. Phumtham and Pirapan will also hold the positions of deputy prime ministers.

Srettha is the first premier in more than four decades to also take the finance minister role. The former business tycoon and his core ministerial team face the task of jump-starting the economy amid rising interest rates and a slowdown in exports. Household debts are near record levels and farmers and small and medium enterprises are still reeling from the impact of the pandemic.

“He is qualified as finance chief with his extensive experience in business,” said Titipol Phakdeewanich, dean of political science at Ubon Ratchathani University. “Still, the move may lead to questions about checks and balances.”

The new Cabinet is expected to be sworn in by the king next week.

Srettha was elected prime minister last week, ending months of political impasse that led to a partial policy paralysis and the exit of foreign investors from Thai stocks and bonds. His Pheu Thai party leads an 11-member coalition, forcing him to divvy up key cabinet positions among the groups.

The energy and industry ministers are from the military-linked United Thai Nation Party, while Pheu Thai kept the commerce and foreign affairs portfolios. Anutin Charnvirakul, who leads Bhumjaithai — the second-largest party in the coalition — will head the high-profile interior ministry. He, along with Parnpree Bahiddha-Nukara as foreign minister, will also be deputy premiers.

Srettha's immediate tasks include the finalization of the state budget for the fiscal year starting Oct. 1. The government has already announced plans to cut energy prices and city-train fares and temporarily suspend debt repayment by farmers as part of a raft of measures to ease the cost of living and boost investment in the $500 billion economy.

His administration will also have to balance spurring growth without stoking inflation. The economy grew 1.8% in the second quarter, among the slowest in Southeast Asia. 

Bank of Thailand Governor Sethaput Suthiwartnarueput said last month the new government should pursue fiscal consolidation in tandem with monetary policy, where 175 basis points of rate increases have helped to bring inflation down from a 14-year high.

(Updates with analyst comments, other appointments from fourth paragraph.)

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