OVERVIEW
Paetongtarn Shinawatra of the Pheu Thai Party became Thailand’s 31st Prime Minister on August 18, 2024, succeeding Srettha Thavisin, who was removed due to an ethical breach. Since taking office, Paetongtarn has led various socioeconomic initiatives. APAC Assistance analyzed the Political Landscape Under PM Paetongtarn Shinawatrathe and covered the political, economic, and security landscape under her leadership, highlighting challenges from political opposition, economic uncertainties, and security threats, as well as the government’s responses to these issues.
POLITICAL OPPOSITION
PM Paetongtarn Shinawatra faces questions about her legitimacy and the influence of her father, former PM Thaksin Shinawatra. A recent poll shows 54% public dissatisfaction with her government. On February 27, the People’s Party filed a no-confidence motion against her, citing failure to perform duties and undue paternal influence, with the debate set for March 24. Critics accuse Paetongtarn of political inexperience and nepotism. The no-confidence motion occurs amid a fragile alliance between the Shinawatras and the conservative military-royalist establishment. Although the Constitutional Court dismissed allegations regarding Thaksin’s hospital stay, the National Anti-Corruption Commission continues to investigate 12 officials involved, reflecting broader efforts to curb Thaksin’s political influence.
Source: Associated Press
ECONOMIC AND BUSINESS ENVIRONMENT
PM Paetongtarn Shinawatra’s government has introduced several populist economic policies, including the PTP’s flagship digital wallet scheme launched on September 25, 2024. While the scheme boosted GDP growth by 0.3 percentage points, it came at a high fiscal cost of 145 billion baht (0.8% of GDP). Despite these efforts, the Bank of Thailand predicts the country may miss its 2.9% growth target, with key sectors like auto exports and production experiencing sharp declines. Paetongtarn remains committed to achieving 3.5% economic growth amid shrinking private investments.
To support the economy, the government is focusing on tourism, manufacturing, and crypto adoption. In February, Paetongtarn visited China, securing commitments for infrastructure projects like the China-Thailand Railway and expanding cooperation in new energy vehicle production. In January, she announced plans to allow cryptocurrency use in Phuket’s storage areas to attract foreign nationals. Additionally, the Cabinet approved a bill to legalize gambling in designated entertainment complexes, aiming to boost revenue and investment. Maintaining political stability remains crucial for fostering investor confidence and long-term economic growth.
SECURITY LANDSCAPE AND CHALLENGES
Thailand’s security environment under PM Paetongtarn faces challenges from human trafficking, gun violence, terror threats, and insurgency in the Deep South. The government has intensified efforts against cross-border scam operations in Myanmar, cutting electricity and internet access to border areas in February. Cooperation with Myanmar and China has led to the rescue of over 7,000 people, mostly Thai nationals.
In response to rising gun violence, the government suspended new firearm-carrying permits until February 2026 and seized 2,000 illegal guns during a January crackdown following a deadly shooting at Siam Paragon Mall.
Terror threats have prompted security alerts from the US and Japan, particularly after Thailand’s secretive deportation of 40 Uyghur asylum seekers to China. In November 2024, a red alert warned of potential terror attacks targeting foreign nationals on Ko Pha Ngan island, with Israel urging its citizens to avoid southern Thailand.
In the Deep South, insurgent violence continues despite the government’s formation of a new peace negotiation team. Recent attacks include bombings in Yala and Pattani provinces, injuring security personnel and civilians. The Barisan Revolusi Nasional (BRN) has criticized delays in peace talks and demanded stronger government commitment, as insurgent activity remains ongoing.