Collaborative government faces critical juncture as Thai Prime Minister offers apology
Prime Minister Paetongtarn Shinawatra's government teeters precariously on the edge of collapse, following a dramatic withdrawal by the Bhumjaithai Party from her coalition on Thursday. This tumultuous decision comes after an outrageous leak of a phone conversation between the premier and former Cambodian leader, Hun Sen.
Bhumjaithai announced their departure on late Wednesday, citing the damage inflicted upon Thailand's reputation, sovereignty, and army as a result of this scandalous leak. At a press conference on Thursday morning, Paetongtarn apologized for the public's anger over the disclosed audio of her private conversation with the Cambodian leader.
"I sincerely apologize for the controversy surrounding the leaked audio of my conversation with a world leader," Ms. Paetongtarn stated at the press conference, flanked by top military and defense officials. "Our focus now should be on preserving our nation's sovereignty. The government stands ready to provide unwavering support to the military in all possible ways."
The premier has remained silent on Bhumjaithai's shocking exit from her Pheu Thai Party-led coalition. In the infamous June 15 call, Paetongtarn can be heard urging Hun Sen to pursue a peaceful resolution to the current border dispute, while cautioning him against listening to aggressive voices within Thailand, including a well-known army general. This political heavyweight, she explained, was simply trying to appear bold and heroic.
However, Paetongtarn later clarified that her tactic was meant to negotiate effectively, and that she had no ill will towards the military.
Emeritus Professor Kevin Hewison of the University of North Carolina at Chapel Hill opined, "Pheu Thai is in deep trouble. The anti-royalists have been handed a golden opportunity by Hun Sen, making Prime Minister Paetongtarn's position incredibly difficult."
The departure of Bhumjaithai threatens the coalition's viability, leaving the government with a painfully thin majority. Losing another medium-sized party, such as the United Thai Nation or the Democrats, could reduce Paetongtarn to a minority government, potentially forcing her to resign or call for new elections.
The ensuing political turmoil is poised to spook foreign investors, who have already sold off a staggering 78 billion baht ($2.5 billion) worth of Thai stocks this year. The Stock Exchange of Thailand index, which has already plunged 22%, could fall even further if the domestic political crisis persists.
Krystal Tan, an analyst at ANZ Group Holdings, warned that this political uncertainty would only continue to undermine business investment and jeopardize the implementation of crucial economic policies.
Meanwhile, an anti-government group has rallied outside Government House to demand Paetongtarn's resignation, while pro-royalist activists prepare to file complaints against her with multiple authorities, alleging various ethical and national security violations.
Thaksin Shinawatra, father to Prime Minister Paetongtarn, is trying to garner support for his daughter's administration from smaller opposition factions in parliament. However, with the pressure mounting and Paetongtarn's standing now looking dodgy, the prospects for her government are grim indeed.
- The current political crisis in Thailand, resulting from Prime Minister Paetongtarn Shinawatra's controversial phone conversation with former Cambodian leader Hun Sen, is causing concern in the finance sector, with foreign investors selling off significant amounts of Thai stocks and analysts predicting further declines in the stock market.
- The departure of the Bhumjaithai Party from the government coalition, leaving the Pheu Thai Party-led administration with a precariously thin majority, is adding to the political uncertainty in the country that is causing unease in the investing community.
- In the realm of policy and legislation, the ongoing political turbulence is making it challenging to implement crucial economic measures, as uncertainty continues to undermine business investment.
- The deepening political crisis, which has attracted the attention of general news outlets and anti-government protesters, is also seeing a rise in the issues of crime and justice, with pro-royalist activists preparing to file complaints against the prime minister.
