(Feb 13): Thai Prime Minister Anutin Charnvirakul secured a coalition deal with a key rival on Friday, days after his conservative party’s sweeping election win.
Pheu Thai, backed by former leader Thaksin Shinawatra’s family and which was placed third in Sunday’s vote, will join the coalition led by Anutin’s Bhumjaithai Party, the premier told reporters in Bangkok.
The deal with Pheu Thai, once a dominant force in Thai politics, guarantees a comfortable majority for Anutin’s alliance in the 500-member lower house to ensure the smooth passage of its legislative agenda.
The new coalition is expected to command the support of nearly 300 lawmakers including Bhumjaithai’s 193 and Pheu Thai’s 74. The deal with Pheu Thai will help avoid a political vacuum, Anutin said, adding the two parties were capable of moving the nation forward.
Bhumjaithai became the first conservative party this century to win a Thai election, trumping pre-poll favourite Progressive Party as it rode on a wave of nationalism triggered by a border conflict with Cambodia and pro-incumbency.
See also: Thai assets rally as election victory signals policy continuity
Thailand’s financial markets have cheered the outcome, with stocks and the currency climbing to multi-month highs on optimism that Anutin’s decisive election victory will help end years of political upheaval. The Southeast Asian nation has had 10 prime ministers since 2005, a churn that has undermined economic growth and left its markets lagging regional peers.
While a new government is unlikely to take office for several weeks to allow for official election procedures to wind down, an early finalisation of the coalition makeup will allow Anutin to fine-tune his administration’s policy priorities. Standard Chartered PCL expects “a running government may be in place by June” as coalition formation is expected to be noisy, according to economist Tim Leelahaphan.
Forming a government with Pheu Thai, while saving conservative party Klatham as an option, is the best-case scenario for the ruling party in terms of public perception and leverage, said Stithorn Thananithichot, political science lecturer at Chulalongkorn University. For Pheu Thai, being in the government may help it leverage access to power to stage a comeback in the next election, he said.
See also: Prabowo puts Indonesia on collision course with global markets
The addition of Pheu Thai’s Yodchanan Wongsawat, Thaksin’s nephew, to the new cabinet may also bolster its credibility. Anutin has already signalled that he will retain a core team of technocrats, including Finance Minister Ekniti Nitithanprapas and Commerce Minister Suphajee Suthumpun in the new administration.
“In the short term, the new government can manage to stay afloat with a somewhat conservative economic policy,” Stithorn said. “In the long run, they need to demonstrate that they can succeed on a more forward-looking economic path.”
Uploaded by Felyx Teoh
