Suspended Thai leader Paetongtarn sworn in as Minister in new cabinet lineup

BANGKOK: Thailand’s suspended Prime Minister Paetongtarn Shinawatra was sworn in as a cabinet minister Thursday (July 3), a manoeuvre allowing her to attend ministerial meetings while awaiting the results of a court review of her alleged misconduct.

Paetongtarn, who will be Minister of Culture in the country’s newly revamped cabinet, and 13 other ministers were sworn in by King Maha Vajiralongkorn in Bangkok, according to government spokesman Jirayu Houngsub.

The ministerial shuffle was announced on Tuesday, hours before the Constitutional Court stripped Paetongtarn of prime ministerial authority.

The ruling coalition had aimed to consolidate support from smaller parties following the recent withdrawal of the conservative Bhumjaithai Party, which significantly weakened the alliance’s parliamentary majority.

The renewed political turbulence has cast fresh doubt on the government’s ability to pass critical legislation, including the upcoming budget, and raised questions about its long-term viability. Paetongtarn’s father was ousted as prime minister in a military coup, and her immediate predecessor was removed from office by court ruling in August last year.

The SET Index is already the world’s worst-performing stock benchmark this year.

The latest instability stems in part from a controversial phone call last month between Paetongtarn and former Cambodian leader Hun Sen, in which they discussed a simmering border dispute between the two countries.

A leaked audio of the call triggered an uproar and dented her popularity, leading to speculation that smaller parties in the ruling bloc may explore new alliances, threatening the government’s stability.

Political “noise could increase in the coming months given concerns about the unity of the Pheu Thai Party-led government’s coalition partners,” according to Tim Leelahaphan, a Bangkok-based economist at Standard Chartered Plc.

“Increasingly volatile politics, coupled with recent Thai-Cambodian border tensions, have raised fears of a military takeover,” he wrote in a note on Wednesday.

The Constitutional Court on July 1 gave Paetongtarn 15 days to respond to the allegations in the petition.

Acting Prime Minister Suriya Jungrungreangkit is expected to chair a special cabinet meeting later on Thursday, during which deputy prime ministers and ministers within the Prime Minister’s Office may be assigned new responsibilities.

Phumtham Wechayachai, a senior Pheu Thai politician who was sworn in as Minister of the Interior, is set to take over from Suriya as acting prime minister. – Bloomberg