(Bloomberg) — Thai Prime Minister Paetongtarn Shinawatra unveiled her new cabinet lineup, retaining Pichai Chunhavajira as finance minister in a signal of policy continuity as she faces the task of bolstering Southeast Asia’s second-largest economy.
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A former chairman of the Thai stock exchange, Pichai was named finance minister, and most members of the previous cabinet led by ousted leader Srettha Thavisin were also retained, according to a list published in the Royal Gazette on Wednesday. The cabinet is set to be sworn-in by the king within days and Paetongtarn is expected to deliver a policy statement soon.
Phumtham Wechayachai, a senior member of the Pheu Thai Party, which leads the multi-party ruling coalition, was named the defense minister, while Pirapan Salirathavibhaga, the leader of military-backed United Thai Nation party was named as the energy minister.
Paetongtarn, the third member of the influential Shinawatra clan to become prime minister, took over from Srettha who was ousted by the nation’s Constitutional Court for an ethical breach. She has to lead a $500 billion economy that has posted average sub-2% growth rates for nearly a decade of military-backed rule.
Pichai’s challenges include accelerating an economic recovery with a controversial $14 billion cash handout to nearly 70% of the population that Srettha had touted as a way to boost growth to 5%. He may have to rework the so-called digital wallet program as Paetongtarn had hinted at a review after being elected as the leader.
The parliament is set to approve this week a 3.75 trillion baht ($109 billion) budget for the fiscal year starting in October to bolster an economy hobbled by near-record household debt, high living costs and a sluggish manufacturing sector battling cheap imports of goods from China.
Paetongtarn, 38, is a relative newcomer to politics and will need to prove that her lack of administrative experience isn’t a handicap in keeping the unwieldy coalition together, while seeking to attract foreign investment into high-tech industries and stem the exodus of foreign funds from the nation’s stocks.
Pichai, who first took the finance post in April this year, has taken steps to tighter oversight of the stocks and bonds markets, besides introducing tax breaks to drive investment in so-called sustainable funds. He’s also promised to launch a state fund which will guarantee a minimum annual return and principal protection for investors.
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