Thailand 20240816: Juxtapolitical, Polychromatic, Panoceanic
Thailand 20240816: Juxtapolitical, Polychromatic, Panoceanic
Mekong Memo Thailand Weekly: Business, politics, finance, trade & legal news.
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Here is your Mekong Memo Thailand for this week.
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Headlines:
Shinawatra Heir Set for Premiership
Instability Deepens as PM is Removed from Office
MFP Dissolution Shows Deep Political Divide
Tech Entrepreneur Leads New People’s Party
China-Thailand Relations to Withstand Instability
Major Reduction in Teen Births, New Health Goals
Judicial Decisions Raise Concerns of Stability
THB Up on Weak USD and Fed Cut Expectations
Toxic Waste Shipments Headed to Thai Ports
New Visas Too Little, Too Late?
Phuket Braces for Tourist Surge
Tourism Boom Faces Challenges as Three-Star Hotels Struggle
Inhalers Take Street Vendor to Global Success
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Shinawatra Heir Set for Premiership
The political landscape is in flux once again as Paetongtarn Shinawatra, daughter of former Prime Minister Thaksin Shinawatra, is showing up as the frontrunner to become the country's next prime minister. This follows on the dismissal of Srettha Thavisin, and would be a dramatic continuation of the Shinawatra family's influence in Thai politics. The Pheu Thai Party's support for her candidacy shows that family legacies and party loyalties continue to shape the nation's leadership. As Thailand prepares for this transition, questions remain about how Paetongtarn's potential premiership might impact the country's domestic policies and international relations.
Read more: Prachatai (House Vote), Japan Times (Paetongtarn Nomination), Reuters (Governing Alliance), Nation Thailand (Family Legacy)
Instability Deepens as PM is Removed from Office
More political upheaval followed the dismissal of Prime Minister Srettha Thavisin by the Constitutional Court. The court found Srettha guilty of ethics violations related to his appointment of a convicted felon to his Cabinet. This decision has thrown Thailand's already volatile political landscape into further disarray, coming right on the heels of the dissolution of the Move Forward Party. These events are causing greater numbers of the citizenry to question the stability of Thailand's democratic institutions and the impact on the country's economic recovery efforts. As Thailand prepares to elect a new prime minister, uncertainty hangs over the nation's political future and its ability to address economic and social challenges.
Read more: Asia Times (Political Upheaval), South China Morning Post (Srettha’s Challenges), Nation Thailand (Srettha’s Rise and Fall), JURIST (Constitutional Court Ruling)
MFP Dissolution Shows Deep Political Divide
The recent dissolution of Thailand's Move Forward Party by the Constitutional Court is another big moment in Thailand’s political story. The court's decision, which centered on the party's stance on lese majeste laws, has laid bare the divide between Thailand's traditional elite and a growing electorate looking for liberal democratic reforms. The dissolution will have far-reaching implications for Thailand's political landscape, altering the balance of power and reshaping opposition dynamics. While the dissolution appears for the moment to safeguard the old order, it also is indicative of the lack of a coherent vision for Thailand's future among its defenders. In response, the newly formed People's Party says it will to continue advocating for reform, setting the stage for continued political tension as Thailand approaches its next general election.
Read more: East Asia Forum
Tech Entrepreneur Leads New People’s Party
Following the dissolution of the Move Forward Party, Natthaphong Ruengpanyawut, a 37-year-old tech entrepreneur, has been appointed leader of the newly formed People's Party. Known for his work in developing the party's online platform, Natthaphong will now have to deal with the challenge of guiding the People's Party through a quickly changing political landscape. His appointment is a shift towards a more tech-savvy approach to politics and governance. As a young leader with a background in innovation, Natthaphong's leadership style and policy priorities will be closely watched for indications of how the party might differentiate itself in Thailand's crowded political arena.
Read more: Nation Thailand
China-Thailand Relations to Withstand Instability
Despite the recent ousting of Thai Prime Minister Srettha Thavisin, analysts say that China's strong economic and diplomatic ties with Thailand will remain largely unaffected by the current political turbulence. The long-standing partnership between the two nations, built on shared economic interests and strategic cooperation, is seen as strong enough to weather the current uncertainty. This stability in bilateral relations is crucial for both countries, as China remains one of Thailand's largest trading partners and a significant source of investment.
Read more: South China Morning Post
Major Reduction in Teen Births, New Health Goals
Excellent work has been done to reduce teenage pregnancies, halving the number of teen mothers through community-level sexual well-being campaigns. The rate has dropped from 53.4 per 1,000 in 2012 to 21 per 1,000 in 2023. Building on this success, the Public Health Ministry, under the "Strong Community for Healthy Sexuality" initiative, has set a new goal to further lower this rate to 15 per 1,000 by 2027. The ministry is also now focusing on combating the rise of sexually transmitted diseases, particularly syphilis, among teenagers through education and prevention efforts.
Read more: Nation Thailand
Judicial Decisions Raise Concerns of Stability
The dissolution of Thailand's Move Forward Party and the removal of Prime Minister Srettha Thavisin by the Constitutional Court has again caused public controversy and raised questions about judicial independence and democratic integrity. While the court's rulings were legally justified, they are still part of a pattern of political intervention by unelected institutions.
Read more: Thai Enquirer
THB Up on Weak USD and Fed Cut Expectations
The Thai baht has strengthened to below 35 per US dollar, reaching its highest level in seven months. This rise is mostly driven by a weakening dollar and market expectations of a Federal Reserve rate cut. The currency's strength has been further helped along by rising gold prices and declining US bond yields. Financial analysts say the baht should continue to trade in a range of 34.85-35.50, with its trajectory dependent on upcoming US economic data and Federal Reserve policy announcements.
Read more: Bangkok Post
Toxic Waste Shipments Headed to Thai Ports
Authorities are racing against time to prevent a reported 100 shipping containers, believed to contain hazardous industrial waste, from reaching Thai ports. The alert came from the US-based Basel Action Network, which tracks toxic trade globally. The containers, allegedly filled with electric arc furnace dust, are en route from Albania.
Read more: South China Morning Post
New Visas Too Little, Too Late?
New visa programs targeting digital nomads, remote workers, and long-term tourists as part of the "Ignite Thailand's Tourism" campaign are now coming into effect. The Destination Thailand Visa (DTV) allows for a five-year stay with multiple entries, supposedly to attract higher-spending visitors who can contribute to the local economy over longer periods. Critics argue that Thailand is late to the game, as other Southeast Asian countries have already introduced similar programs and established themselves as digital nomad hubs.
Read more: CNA
Phuket Braces for Tourist Surge
As Phuket gears up for the high tourist season, local authorities are being asked to improve safety protocols and streamline services for the influx of visitors. Measures include speeding up immigration processes to under 30 minutes, improving crime prevention efforts, and ensuring marine safety. The focus is necessary to manage the anticipated doubling of tourist numbers compared to last year.
Read more: Khaosod English
Tourism Boom Faces Challenges as Three-Star Hotels Struggle
More than 21 million visitors have brought in a handsome 1 trillion baht so far this year, but despite the positive trend, three-star hotels say they are struggling to keep up, unable to raise room rates due to competition and an apparent “shortage of international flights.” Government tax incentives have been introduced to help increase revenue in second-tier cities, but so far they have had limited impact. Premium accommodations are doing well, but budget options are lagging behind.
Read more: Nation Thailand (Arrivals), Bangkok Post (Hotel Challenges), Nation Thailand (Affordable Destinations)
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article. This is a fun one about a local man who has gone from rags to riches:
Inhalers Take Street Vendor to Global Success
Teerapong Rabutham, the founder of Hong Thai Inhalers, has transformed his small street business into a major brand now used by global superstars like Lisa of BLACKPINK and actor Chris Hemsworth. Starting with a modest $6 investment (yes, six) and a relentless dedication to improving his product, Rabutham now leads a company producing more than 3 million units each month with annual sales expected to reach 500 million baht for this calendar year. His success story is an inspiration for aspiring entrepreneurs across Southeast Asia.
Read more: Khaosod English
That’s it for this week, thanks for reading!
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