Thai govt on brink after coalition partner pulls out
BANGKOK: The second biggest party in Thailand's ruling coalition pulled out on Wednesday over a leaked phone call between Prime Minister Paetongtarn Shinawatra and former Cambodian leader Hun Sen, putting her government on the brink of collapse.
The conservative Bhumjaithai party said 'the country, people and army lost dignity' because of Paetongtarn's conduct in the call about a festering border dispute between Thailand and Cambodia.
The loss of Bhumjaithai's 69 active members of parliament leaves the coalition led by Paetongtarn's Pheu Thai party with barely enough votes for a majority.
If any other coalition partner pulls out, it could put the kingdom on course for a general election — scarcely two years since the last one in May 2023.
Bhumjaithai said in a statement announcing its withdrawal that the leaked phone call had 'damaged the sovereignty and well-being of the country and Thai Army'.
'Bhumjaithai party calls on Paetongtarn to show responsibility for her actions that have made the country people and army lose dignity,' the statement said.
Paetongtarn, 38, came to power in August 2024 at the head of an awkward coalition between Pheu Thai and a group of conservative, pro-military parties whose members have spent much of the last 20 years battling against her father, former prime minister Thaksin Shinawatra.
Growing tensions within the coalition erupted into open warfare in the past week as Pheu Thai tried to take the interior minister job away from Bhumjaithai leader Anutin Charnvirakul.
The loss of Bhumjaithai leaves Pheu Thai's coalition with just a handful more votes than the 248 needed for a majority.
Turbulent politics
In the leaked phone call Paetongtarn is heard discussing the border crisis with Hun Sen — who stepped down as prime minister in 2023 after four decades but still wields considerable influence.
She addresses the veteran leader as 'uncle' and complains about the bad publicity she is suffering as a result of the standoff, which flared last month when troops exchanged fire, killing one Cambodian soldier.
Paetongtarn has also suffered criticism for her lack of experience and leadership, as well as the sluggish performance of the Thai economy.
If her position becomes untenable, she could call a snap election, which would be held within 60 days.
Alternatively, she could resign and allow other party leaders to try to organise a coalition.
The 2023 election, which swept away nearly a decade of military-aligned rule in Thailand, resulted in no single party dominating the lower house.
The progressive Move Forward Party won most seats but was unable to muster enough votes to get its leader approved as prime minister.
This opened the door for Pheu Thai to stitch together an uneasy pact with a handful of pro-military parties long staunchly opposed to the Shinawatra family.
Paetongtarn's father and aunt Yingluck were both thrown out as prime minister by the army during a two-decade power struggle between Thaksin and the kingdom's conservative pro-royal establishment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
8 hours ago
- Business Recorder
Asia currencies: Thai baht hit by political turmoil
BENGALURU: The Thai baht weakened on Friday and was set for its biggest weekly drop in four months as political uncertainty weighed on already fragile sentiment, while other regional currencies were also headed for weekly losses on Middle East tensions. The baht fell 0.4% in its fifth session of losses and was on course to log its worst week since late February. Prime Minister Paetongtarn Shinawatra was facing the prospect of losing her government's majority as the United Thai Nation party, a vital coalition partner, looked set to demand her resignation after just 10 months in power. This follows the Bhumjaithai Party's withdrawal from the alliance after a leaked phone call with Cambodia's former leader. The political instability comes against the backdrop of persistent bond outflows driven by low returns and vulnerability to US trade tariffs and the government's call for a weaker baht to support exports and tourism. 'At a time when unprecedented geoeconomic challenges are confronting Thailand, the lack of political leadership/certainty is an unwelcome handicap for trade/diplomacy and wider geopolitical leverage,' said Vishnu Varathan, head of macro research for Asia excluding Japan at Mizuho Bank, in a note. 'The BoT (Bank of Thailand) arguably needs to compensate, hastening another 50-75bp of rate cuts,' he said, adding that the optimal policy mix for the central bank would be to cut rates while stabilizing the baht. Thai stocks rose 0.3%. Poon Panichpibool, markets strategist at Krung Thai Bank, attributed the rise to a combination of technical rebound and some investors buying stocks on a dip after Thursday's 2.4% fall. Other regional currencies inched up on the day but were set for weekly losses as investors weighed the possibility of US involvement in the Israel-Iran conflict. The Indonesian rupiah was on course for its worst weekly performance since early April, and the Philippine peso was poised for its biggest weekly drop since October. The South Korean won rose 0.8% on Friday but was set for its second consecutive weekly fall. Taiwan's dollar added 0.4%, a day after the country's central bank kept its policy rate unchanged and signalled there was no need for a rate cut this year. Meanwhile, the Hong Kong dollar hit the weak end of its trading band for the first time in two years.
Business Recorder
21 hours ago
- Business Recorder
Embattled Thai PM faces call to step down to avert coalition revolt
BANGKOK: Thailand's embattled Prime Minister Paetongtarn Shinawatra faced the prospect of losing her government's majority on Friday, as a vital coalition partner looked set to demand her resignation and senators launched a legal bid to remove her from office. Paetongtarn, the politically inexperienced daughter of divisive tycoon and former premier Thaksin Shinawatra, is fighting fires on multiple fronts, struggling to breathe life into a stagnant economy facing steep U.S. tariffs and under pressure to take a tougher stand on a territorial row with Cambodia that has seen their troops mobilise at the border. The United Thai Nation party, the second-largest partner in her alliance, will demand Paetongtarn, 38, step down as a condition for it to remain in the Pheu Thai Party-led coalition, two UTN sources told Reuters, requesting anonymity because they were not authorised to speak to media. 'If she doesn't resign, the party would leave the government,' one source said. 'We want the party leader to tell the PM as a courtesy.' Though Paetongtarn received a boost on Friday with another coalition partner, the Democrat Party, pledging its support, Thailand's youngest premier is still in an untenable position, with her majority hinging on UTN staying in the alliance following Wednesday's exit by the larger Bhumjaithai Party. It is unclear when UTN will announce its position and a spokesperson said the party would wait for its leader to inform the prime minister of its decision. Reflecting concerns in financial markets, the Thai baht weakened for a fifth consecutive session on Friday and was on course to log its worst week in four months. Thai govt on brink after coalition partner pulls out Tumultuous past Paetongtarn's battle to stay in power demonstrates the declining strength of Pheu Thai, the populist juggernaut of the billionaire Shinawatra family that has dominated Thai elections since 2001, enduring military coups and court rulings that have toppled multiple governments and prime ministers. But Paetongtarn is facing domestic anger and the prospect of an internal revolt over Wednesday's embarrassing leak of a phone call between her and Cambodia's influential former leader Hun Sen - once seen as a Shinawatra family ally - which her critics say posed a threat to Thailand's sovereignty and integrity. During the conversation, Paetongtarn called for a peaceful resolution of the border dispute and disparaged an outspoken Thai army general who she said 'just wants to look cool', a red line in a country where the military has a high profile and significant political clout. Pressure mounted on Friday from outside her government, with 69 senators petitioning both the Constitutional Court and an anti-graft agency over the phone conversation leak, seeking a determination and an investigation, respectively, into whether Paetongtarn breached leadership moral standards. Activists also met on Friday to schedule a major protest in Bangkok starting on June 28 to demand Paetongtarn resigns, among them groups with a history of crippling rallies against Shinawatra administrations. Paetongtarn has not commented on the turmoil in her government and has tried to present a united front on the Cambodia issue, appearing on Thursday alongside military chiefs and vowing to defend sovereignty. The premier visited military units at the Cambodia border on Friday, where she handed out food packages to soldiers and was given a tour by Lieutenant General Boonsin Padklang, the regional commander whom she criticised in the leaked call. Paetongtarn's options for staying in power are limited unless her allies can succeed in behind-the-scenes horse-trading. A snap election could damage Pheu Thai and play into the hands of the progressive opposition People's Party, the largest force in parliament. Two Pheu Thai sources told Reuters the party is confident Paetongtarn can avoid resigning or dissolving parliament and her government is considering a major cabinet reshuffle to fill vacant positions.
Business Recorder
2 days ago
- Business Recorder
Thai govt on brink after coalition partner pulls out
BANGKOK: The second biggest party in Thailand's ruling coalition pulled out on Wednesday over a leaked phone call between Prime Minister Paetongtarn Shinawatra and former Cambodian leader Hun Sen, putting her government on the brink of collapse. The conservative Bhumjaithai party said 'the country, people and army lost dignity' because of Paetongtarn's conduct in the call about a festering border dispute between Thailand and Cambodia. The loss of Bhumjaithai's 69 active members of parliament leaves the coalition led by Paetongtarn's Pheu Thai party with barely enough votes for a majority. If any other coalition partner pulls out, it could put the kingdom on course for a general election — scarcely two years since the last one in May 2023. Bhumjaithai said in a statement announcing its withdrawal that the leaked phone call had 'damaged the sovereignty and well-being of the country and Thai Army'. 'Bhumjaithai party calls on Paetongtarn to show responsibility for her actions that have made the country people and army lose dignity,' the statement said. Paetongtarn, 38, came to power in August 2024 at the head of an awkward coalition between Pheu Thai and a group of conservative, pro-military parties whose members have spent much of the last 20 years battling against her father, former prime minister Thaksin Shinawatra. Growing tensions within the coalition erupted into open warfare in the past week as Pheu Thai tried to take the interior minister job away from Bhumjaithai leader Anutin Charnvirakul. The loss of Bhumjaithai leaves Pheu Thai's coalition with just a handful more votes than the 248 needed for a majority. Turbulent politics In the leaked phone call Paetongtarn is heard discussing the border crisis with Hun Sen — who stepped down as prime minister in 2023 after four decades but still wields considerable influence. She addresses the veteran leader as 'uncle' and complains about the bad publicity she is suffering as a result of the standoff, which flared last month when troops exchanged fire, killing one Cambodian soldier. Paetongtarn has also suffered criticism for her lack of experience and leadership, as well as the sluggish performance of the Thai economy. If her position becomes untenable, she could call a snap election, which would be held within 60 days. Alternatively, she could resign and allow other party leaders to try to organise a coalition. The 2023 election, which swept away nearly a decade of military-aligned rule in Thailand, resulted in no single party dominating the lower house. The progressive Move Forward Party won most seats but was unable to muster enough votes to get its leader approved as prime minister. This opened the door for Pheu Thai to stitch together an uneasy pact with a handful of pro-military parties long staunchly opposed to the Shinawatra family. Paetongtarn's father and aunt Yingluck were both thrown out as prime minister by the army during a two-decade power struggle between Thaksin and the kingdom's conservative pro-royal establishment.
