Asia

Thai PM assures ruling coalition is stable as dispute with Cambodia escalates

BANGKOK: Thailand’s embattled Prime Minister Paetongtarn Shinawatra said her coalition remained strong and a cabinet reshuffle had been settled, days after its second-largest coalition partner quit over a deepening border dispute with Cambodia.

Last week, coalition partner Bhumjaithai withdrew its support for the government hours after an audio recording of a conversation between Paetongtarn and former Cambodian leader Hun Sen was leaked.

The exit threw the government into turmoil as it scrambled to shore up coalition support for its slim majority amid a public backlash against the conversation, in which Paetongtarn appeared to kowtow before Hun Sen and criticise a senior Thai military commander.

By Tuesday (Jun 24), Paetongtarn said her coalition was strong and that the cabinet reshuffle had been finalised, as her government approved US$3.5 billion worth of infrastructure projects aimed at boosting growth.

“It’s settled, I’ve spoken to all party leaders,” she said, adding that the names were being vetted before they were sent to the king for approval.

“Coalition parties have been fully supportive.”

Thailand’s economy has lagged regional peers as it struggles under high household debt and borrowing costs, declining tourism arrivals and uncertainty around imminent US tariffs.

Last year, the economy grew 2.5 per cent, with growth this year expected to be slightly above 1 per cent.

A 38-year-old political novice and daughter of the divisive former Prime Minister Thaksin Shinawatra, Paetongtarn also dismissed speculation that she would take over the defence ministry portfolio, a closely watched position as the situation with Cambodia deteriorates.

Source: CNA

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