Bloomberg - Balance of Power : Thai King Endorses Srettha’s Election as New Prime Minister

 

The dust has settled in the three-month standoff that saw Thais vote against the military-backed government that took power in a 2014 coup, and the royal establishment has emerged unscathed, for now. Thailand’s king approved parliament’s backing of property tycoon Srettha Thavisin as prime minister, ending a stalemate that punished markets in Southeast Asia’s second-biggest economy. Expectations are that investors will return now that the short-term uncertainty is over, but longer-term questions remain. Key Reading: Thai King Endorses Srettha’s Election as New Prime Minister  Thaksin Moved to Hospital From Prison a Day After His Return  Why Thaksin Made Peace With Thai Establishment Foes Srettha’s Premier Vote Win May Spur More Gains in Thai Assets The vote winner, the Move Forward party led by Pita Limjaroenrat, failed to win support in parliament, where 250 of the 750 seats are controlled by military appointees. The establishment was wary of Pita’s vow to amend a law restricting criticism of the monarchy. That left the door open to the runner up, the Pheu Thai party, to cobble together a coalition. Adding to the drama, former Prime Minister Thaksin Shinawatra, who backed Pheu Thai, returned to Thailand from a 15-year exile and was immediately jailed for his alleged role in various corruption cases. He’s expected to get a royal pardon. One of the biggest questions now is whether, after seething under military-backed rule, the largely young and digitally-connected Thais who backed Move Forward will go along. The ruling coalition has pledged to push through with policies including a 10,000 baht ($285) digital wallet for all Thais and a higher base salary for university graduates. That won’t overcome the extraordinary household debt that hangs over the economy, not to mention worries that China’s slowdown will pummel the region. For now, the king’s endorsement gives Thailand a government, and Srettha a chance to lead. But the country’s tumultuous history suggests time may not be on his side. — Bill Faries

Srettha at the Pheu Thai party headquarters in Bangkok yesterday. Photographer: Andre Malerba/Bloomberg Listen to our Twitter Space discussion at 8am ET today on the BRICS nations’ fight for a greater global say. And if you are enjoying this newsletter, sign up here.

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