Thaksin Shinawatra’s return stirs interest in Thailand’s economic policy

Former Prime Minister of Thailand Thaksin Shinawatra is back in the political limelight following his release on parole. His return to his Ban Chan Song La residence in Bangkok, which previously served as his command centre during his time in office, has sparked interest from the business sector.

They are keen to understand the potential implications this could have on the current administration, particularly about the economic policy under the Pheu Thai Party-led coalition government, which Thaksin has dominated since 2007.

Sisdivachr Cheewarattanaporn, President of the Association of Thai Travel Agents, stressed the need for consistent policies, notwithstanding changes in the political landscape. He indicated that it may be premature for a cabinet reshuffle, given that the current administration, led by Prime Minister Srettha Thavisin, has only been in place for six months. Sisdivachr was of the view that Thaksin’s return to his residence was unlikely to cause significant changes, considering his continued influence on the party during his exile, reported Bangkok Post.

From an economic perspective, Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, suggested that Thaksin’s expertise could be beneficial in an advisory role to the government. Aat Pisanwanich, an economics analyst and senior consultant at Intelligence Research Consultant Co Ltd, also hinted at the possible influence Thaksin’s release could have on economic policies, beyond those declared by the Pheu Thai Party during the election campaign.

Prakit Siriwattanaket, managing director of Merchant Partners Asset Management, pointed out that Thaksin’s potential role in policy formulation is being closely monitored by the stock market. He also raised concerns about who holds real power within the government, highlighting the coalition government’s occasional lack of unity.

Somchai Sittichaisrichart, managing director of SIS Distribution (Thailand) Plc, an IT distributor, does not expect Thaksin’s release to alter the course of Thai economic development. He urged the government to implement short-term economic stimuli that do not increase public debt, in addition to encouraging foreign investment in Thailand.

Government operations

Despite Thaksin’s release, Apichart Kasemkulsiri, chief executive of SET-listed LPN Development, does not foresee political upheaval. He suggests that Thaksin’s return could result in more vigorous government operations, including the implementation of economic stimulus policies.

While Thaksin’s influence on the political landscape is undeniable, the Federation of Thai Industries, the Federation of Thai SMEs, and the Employers’ Confederation of Thai Trade and Industry declined to comment on the economic prospects following the 74 year old’s release.

On the other hand, political observers anticipate that Thaksin will continue to exert influence on politics, especially with the Pheu Thai Party at the helm of the government.