Thai Prime Minister Appoints New Finance Minister Amid Economic Challenges: Pichai Chunhavajira Takes Over from Srettha Thavisin
Thai Prime Minister Srettha Thavisin appointed Pichai Chunhavajira, a former energy executive and former chairman of the Stock Exchange of Thailand, as the new finance minister and deputy prime minister on Sunday.
The 75-year-old Pichai, who was an adviser to the prime minister, takes over from Srettha and faces the challenge of reviving Thailand's economy, which is the second largest in Southeast Asia.
Pichai has experience in the energy sector as the chair of Bangchak Corp since 2012 and served on the central bank board from 2014 to 2017.
He also briefly headed the board of the Stock Exchange of Thailand this year.
The Thai economy is experiencing slow growth, with unexpected GDP contraction in the last quarter of 2023 and a decrease in growth rate from 2.5% in 2022 to 1.9% in 2023.
The state planning agency reduced the 2024 growth forecast to between 2.2% and 3.2%, down from a previous projection of 2.7%-3.7%.
Thai Prime Minister Pichai will implement policies including a controversial 500 billion baht ($14 billion) handout scheme, which aims to transfer 10,000 baht ($270) to each of 50 million Thais.
However, the stimulus has been delayed due to funding issues and concerns about public debt, with critics labeling it fiscally irresponsible.
The Thai economy is also affected by high household debt and borrowing costs, as well as China's economic slowdown.
The Thai government, led by finance minister Srettha, a real estate mogul and political newcomer, is pushing forward with an economic stimulus scheme despite opposition from the central bank, which suggests it be focused on vulnerable groups.
Srettha has clashed with the Bank of Thailand over monetary policy, urging it to lower interest rates to boost the economy, which he deems "critical."
Pichai has experience in the energy sector as the chair of Bangchak Corp since 2012 and served on the central bank board from 2014 to 2017.
He also briefly headed the board of the Stock Exchange of Thailand this year.
The Thai economy is experiencing slow growth, with unexpected GDP contraction in the last quarter of 2023 and a decrease in growth rate from 2.5% in 2022 to 1.9% in 2023.
The state planning agency reduced the 2024 growth forecast to between 2.2% and 3.2%, down from a previous projection of 2.7%-3.7%.
Thai Prime Minister Pichai will implement policies including a controversial 500 billion baht ($14 billion) handout scheme, which aims to transfer 10,000 baht ($270) to each of 50 million Thais.
However, the stimulus has been delayed due to funding issues and concerns about public debt, with critics labeling it fiscally irresponsible.
The Thai economy is also affected by high household debt and borrowing costs, as well as China's economic slowdown.
The Thai government, led by finance minister Srettha, a real estate mogul and political newcomer, is pushing forward with an economic stimulus scheme despite opposition from the central bank, which suggests it be focused on vulnerable groups.
Srettha has clashed with the Bank of Thailand over monetary policy, urging it to lower interest rates to boost the economy, which he deems "critical."
