Thread: Thailand and the new coalition government

Government to implement measures against illegal ‘nominees’

Major discussion on issue set for Monday, December 9

The Ministry of Commerce has scheduled a meeting of the board tasked with addressing issues related to illegal foreign goods and businesses for Monday. The meeting aims to finalise and implement strict measures against illegal "nominee" practices to ensure fairness for Thai entrepreneurs.

Commerce Minister Pichai Naripthaphan announced on Saturday that the committee will focus on expediting tangible solutions in the short, medium, and long terms.

He said the prime minister has expressed concern about the hardships faced by citizens impacted by concealed foreign-nominee businesses in Thailand. Many of these operations are linked to illegal business networks and online crimes that deceive both businesses and the public.

To address this issue, a committee has been established to develop policies and urgent measures to prevent and suppress illegal foreign goods and businesses.

Recently, two subcommittees were formed: the Subcommittee on Preventing and Suppressing Concealed Foreign Nominee Businesses and the Subcommittee on Promoting and Upgrading Thai SMEs and Addressing the Issue of Substandard Foreign Goods.

These subcommittees, chaired by Deputy Minister of Commerce Napintorn Srisunpang, will collaborate with relevant agencies to tackle these challenges effectively.

Pichai announced a recent operation conducted by the Department of Business Development and the Central Investigation Bureau (CIB) of the Royal Thai Police. The operation involved 46 raids across the country, uncovering illegal activities linked to 442 companies with registered capital totalling 1.189 billion baht and damages exceeding 3.6 billion baht.

The offenders allegedly registered companies to conceal illegal business operations, including retail shops, restaurants, supermarkets, tour operators, warehouses, currency and digital money exchanges, and real-estate holdings. Many of these companies were found to be non-operational, serving instead as fronts for illicit activities such as online scams, call-centre fraud, and money-laundering.

On November 4, the Department of Business Development and the CIB signed a memorandum of understanding (MoU) to combat nominee schemes and the use of shell companies. This partnership includes linking corporate data with the CIB's centralised database to enhance analytical capabilities for identifying and prosecuting suspect businesses.

This collaborative effort aims to eradicate nominee practices and shell-company accounts, aligning with the government's policy to address these issues. The recent operation is a direct result of the MoU and demonstrates tangible progress in tackling these challenges, the government claims.

Pichai further instructed the Department of Business Development to tighten business-registration protocols to prevent future misuse of corporate registrations. This includes monitoring high-risk companies for nominee activities and collaborating with law enforcement to prosecute offenders.

These measures are intended to alleviate the impact on affected citizens, reduce social and economic issues, and strengthen Thailand's economic integrity.

Government to implement measures against illegal ‘nominees’

Pichai discusses economic cooperation, FTA with UK ambassador

Discussions emphasised mutual commitment to expanding trade and investment

Commerce Minister Pichai Naripthaphan met with Mark Gooding, the British Ambassador to Thailand, on December 4 at the ambassador’s official residence in Bangkok to discuss economic, trade, and investment cooperation.

The talks explored the feasibility of a Thailand-UK Free Trade Agreement (FTA) to enhance bilateral trade and investment, aligning with both governments' policies to strengthen economic ties.

Pichai discusses economic cooperation, FTA with UK ambassador

The discussions emphasised mutual commitment to expanding trade and investment through the Joint Economic and Trade Committee (JETCO) at the ministerial level. Both sides aim to create a favourable business environment, facilitate trade and investment, and deepen cooperation under the Enhanced Trade Partnership (ETP).

This includes collaboration in key sectors such as agriculture, food and beverages, investment, tourism, and health care, where the two nations share complementary resources and capabilities.

Earlier, Pichai and UK Trade Minister Douglas Alexander signed a memorandum of understanding (MoU) in Bangkok on September 18. Both parties expressed readiness to host a second JETCO meeting in 2025 to review progress, marking the 170th anniversary of diplomatic relations between Thailand and the UK.

Pichai stressed the importance of a strong trade partnership as a foundation for future FTA negotiations. He said he believed an FTA would significantly boost bilateral trade and investment, fostering sustainable growth. Businesses of both countries have consistently supported the initiation of such negotiations to expand trade opportunities.

The minister also thanked the UK for supporting Thailand’s application to join the Organisation for Economic Co-operation and Development (OECD). He reiterated the Ministry of Commerce's commitment to facilitating smoother foreign trade and investment in Thailand, particularly in target industries such as electronic data processing equipment, data centres, pharmaceuticals, and medical devices.

During the first 10 months of 2024 (January–October), the United Kingdom ranked as Thailand's 22nd-largest trading partner globally and fourth in Europe, following Switzerland, Germany and the Netherlands. The total trade volume between the two countries was US$5.54 billion, with Thailand recording a trade surplus of $1.37 billion.

Pichai discusses economic cooperation, FTA with UK ambassador

New measures aimed at tackling debts to be announced Dec 11

Debt restructuring programme at the core of the new measures and will target borrowers with housing, auto and SME NPLs

The Finance Ministry, the Bank of Thailand (BOT) and financial institutions will jointly announce measures aimed at tackling debt problems next Wednesday (December 11).

These measures will focus on debts from housing and auto loans as well as business-related loans of small and medium enterprises (SMEs), Lavaron Sangsnit, Finance Ministry’s Permanent Secretary said on Thursday.

Finance Minister Pichai Chunhavajira, BOT governor Sethaput Suthiwartnarueput, and executives of financial institutions are expected to lead the press conference, which will be held at the Bank of Thailand in Bangkok, he said.

New measures aimed at tackling debts to be announced Dec 11

Lavaron said the new measures include a debt restructuring programme that targets both recent borrowers and those who entered the government’s debt programmes in the past three years.

Applicants can choose from various payment plans that will allow them to pay back the principal as soon as possible by suspending interest payments, he said.

“These measures will help fix the rising non-performing loans (NPLs) in the housing and auto markets, which have affected the automakers and property developers, as well as supply chain providers in related industries,” said Lavaron.

Earlier, deputy finance minister Paopoom Rojanasakul estimated that the campaign would help holders of 2.3 million accounts pay off their debts worth 1.31 trillion baht.

Eligible accounts must have become NPLs less than a year prior to October 31, 2024. This cut-off date is to prevent newer account holders deliberately defaulting on payments to join the campaign, he said.

Paopoom explained that the campaign will not be financed from the government budget, but will use the money available from allowing Thai banks to pay a reduced annual contribution to the Financial Institutions Development Fund (FIDF), from the current 0.46% to 0.23% of deposits.

Financial institutes will also contribute part of the funding for the campaign, he added.

New measures aimed at tackling debts to be announced Dec 11

PM to detail government’s quarterly performance this Thursday

In nationally televised address on Thursday, Prime Minister Paetongtarn Shinawatra and her cabinet will provide details of the government’s performance over the past three months and explain its plans for the direction of the country in 2025.

Government Spokesman Jirayu Huangsap said today that the government is upbeat about improvements in various sectors, from tourism and agriculture to industrial development and investment, and is confident that economic growth in 2025 will exceed this year’s.

He said that the prime minister will also take the opportunity to present administrative policies, under the “2025 Empowering Thais: A Real Possibility” theme, to all state agencies.

Thailand’s growth for 2024 is forecast to be between 2.3% and 2.8%, which is low among ASEAN member countries.

PM to detail government’s quarterly performance this Thursda

Thais advised against travel to Syria

The Thai Foreign Ministry has instructed Thai nationals to avoid unnecessary travel to Syria, due to the uncertain political situation following the toppling of President Bashar Assad’s government by opposition rebels on December 8.

The Thai Embassy in Tehran, Iran, which also covers Syria, reported that it has contacted 23 Thai nationals in Syria since the political chaos began last week.

All 23 Thais are currently safe and the embassy is prepared to facilitate their evacuation if needed.

Of the 23, 22 reside in the capital city of Damascus, while one lives in Daraa, near the border with Jordan. They include masseurs, students and those married to Syrians.

The Thai Embassy in Iran will closely monitor the situation, maintain communication with Thai nationals in Syria and provide assistance as necessary.

It has urged those in Syria to stay up to date on the situation through all available channels and to avoid travel within the country.

Thais advised against travel to Syria

Bankers review PM’s performance in first 100 days

While generally giving Paetongtarn a positive review, the two bankers make recommendations for further reviving the economy

Two bankers have given Prime Minister Paetongtarn Shinawatra’s performance in reviving the economy during her first three months in office a positive review but say several tasks still need to be accomplished.

Amonthep Chawla, executive vice president and head of the research office at the CIMB Thai Bank, noted that the Paetongtarn government had to resolve the economic issues inherited from the previous government, which had failed to stimulate the economy.

The Thai economy had been made worse by this year’s flooding, falling crop prices and continued regression, he added.

Amornthep also commented favourably on the government’s hand-out of 10,000 baht to 14 million vulnerable people, namely state welfare holders and the disabled, but added that he would like to have seen the recipients receive some education in how to use the cash to generate income. He hoped the government would bear this in mind when making future payments under the programme.

He praised the Paetongtarn government for continuing former PM Srettha Thavisin’s mission of wooing foreign investors to come to Thailand.

Noting that Chinese companies could be expected to move their production bases to Thailand to counter the tariffs announced by US president-elect Donald Trump, and the inevitable exacerbation of the trade war with China, Amornthep nonetheless advised the Paetongtarn government to be on alert for fallouts from external factors, such as wars and trade wars.

He said the government should also be careful about its spending, stressing that if it wanted to continue the 10,000-baht handout programme, it should make sure the recipients would use the money to stimulate the economy. Another recommendation was to invest more in basic infrastructure.

Burin Adulwattana, chief economist of Kasikorn Bank’s Research Centre, echoed Amornthep’s view that Paetongtarn’s government had been doing a good job over the past three months, specifically mentioning the building of stability in the fund market through the Vayupak Fund.

However, he felt the government should do more to build confidence by having the Stock Exchange of Thailand and the Securities and Exchange Commission announce and enforce measures against corruption and fraud in the stock market.

Burin praised the government for trying to reduce the electricity rates and amend the law to reduce energy costs, adding that he would like to see a freeing up of the market in solar panels and enhanced use of photovoltaics to generate electricity, thus further reducing electricity costs.

Burin also called on the government to speed up the entertainment complex project, which would boost tourism and property development as well as generate a significant number of jobs.

In the meantime, he advised the government to postpone its plan to raise VAT from 7 to 15%, saying neighbouring countries set their rates at only 9-10% VAT.

He also recommended that the government try to expand the income tax base by lowering the rate and boosting employment for some 10 million potential tax payers, noting that this would also raise GDP.

Bankers review PM’s performance in first 100 days

AMCHAM hosts Minister of Commerce for Member Luncheon

The American Chamber of Commerce in Thailand (AMCHAM) welcomed Pichai Naripthaphan, Minister of Commerce, as the honoured guest at its Member Luncheon, where he shared insights into Thailand's trade and economic strategy.

Incoming AMCHAM President Chatit Huayhongtong of Chevron opened the event, emphasizing the significance of the US-Thailand trade relationship, with the US being Thailand's largest export market. He said, "AMCHAM remains committed to partnering with Prime Minister Paetongtarn Shinawatra's administration and strengthening our collaboration with the Royal Thai Government and the Ministry of Commerce."

In a Fireside Chat moderated by AMCHAM President Ornkanya Pibuldham of Bank of America, Pichai outlined Thailand's 2024 trade performance and his strategic vision for 2025. He addressed priorities such as attracting Foreign Direct Investment (FDI) and advancing free trade agreements. His strategies to overcome challenges were well received by AMCHAM members.

During the question-and-answer session, Pichai discussed his support for Thailand's automotive industry, plans to bolster SMEs, and enhancing collaboration with the private sector to implement stronger safeguard measures aimed at protecting important industries in Thailand.

US Ambassador to Thailand Robert Godec was also in attendance, underscoring the event's significance as a platform for dialogue on critical trade and investment issues.

AMCHAM hosts Minister of Commerce for Member Luncheon

This luncheon reflected AMCHAM's dedication to facilitating meaningful discussions between its members and key government leaders to help shape Thailand's economic and trade landscape.

AMCHAM hosts Minister of Commerce for Member Luncheon

Thailand’s debt relief plan heads to Cabinet

Packages will waive interest on NPLs and forgive debt on credit-card and personal loans of less than 5,000 baht

The government will submit a two-pronged debt relief plan to the Cabinet for approval on Wednesday (December 11).

The proposed measures aim to alleviate the financial burden on millions of individuals and small businesses struggling with debt.

Debt Relief Package 1: Interest waiver for struggling borrowers

The first package targets borrowers with non-performing loans (NPLs) of less than a year. Interest on SME, car, and home loans will be waived for borrowers who commit to a 12-month repayment plan. In return, borrowers must adhere to strict repayment terms. The government and commercial banks will cover a portion of the interest costs to facilitate this relief measure.

Debt Relief Package 2: Small debt forgiveness

The second package provides targeted relief for individuals with small outstanding debts. Borrowers with debt of less than 5,000 baht through credit cards or personal loans will have their debts forgiven. This measure is intended to help those who may have inadvertently fallen behind on their payments.

Addressing the NPL crisis

The government debt relief measures come as Thailand grapples with a surge in NPLs. As of October, the total value of NPLs reached 1.2 trillion baht, affecting nearly 9.6 million accounts. Another 2.1 million accounts are at risk of missing repayments.

Surapon Opassathien, president of the National Credit Information Company, expressed concern over the growing number of distressed borrowers. He noted that many borrowers are struggling to secure additional credit due to their existing debt burdens.

The government's debt relief initiatives aim to provide relief to struggling borrowers while stimulating spending, investment and employment. The Pheu Thai-led government will be watching the long-term economic impact of these measures carefully amid concern over possible fiscal imbalances.

Thailand’s debt relief plan heads to Cabinet

Pheu Thai offers to withdraw bill to reduce military’s power

Prayut Siripanich cites opposition from society and coalition parties

Prayut Siripanich, a member of Parliament from the Pheu Thai Party, commented on the opposition to the draft National Defence Organisation Act, which grants the Cabinet the power to consider appointing senior military officers to prevent a coup. He noted that after listening to public opinions on the draft bill over the past week, there has been significant opposition.

Therefore, on Thursday, December 12, when the House of Representatives convenes, the Pheu Thai Party will hold a meeting in the morning and propose withdrawal of the draft for further revision. If the party membership agrees, they will request withdrawal of the draft from the House of Representatives on the same day.

Prayut emphasised that this bill was proposed by him and his team in a personal capacity, not as a stance of the Pheu Thai Party. In line with the public consultation process under Section 77 of the Constitution, if the majority of the public opposes it, the bill cannot be included in the agenda for the House.

As for how it will be amended, he plans to wait for public feedback after the consultation period ends on January 1, 2025, including concerns about giving the Cabinet a role in appointing senior military officers, as it is seen as military interference.

“If society feels that the Cabinet should step back, we must listen. If we push forward, we won’t be able to propose the law anyway,” Prayut said.

He said the draft law does not interfere with the military. Proposals for the appointment of senior military officers would be made by a committee of the respective government agency, which would nominate officers according to the Ministry of Defence's criteria. The names would then be submitted to the Cabinet for consideration. The Ministry of Defence oversees the entire appointment process, and the Cabinet does not make the appointments directly.

"Regarding the provision that allows the prime minister to order military officers to cease their duties temporarily if they act beyond their constitutional responsibilities in order to prevent a coup, this is not a flaw of the bill, but rather the use of power to prevent a coup, similar to how South Korean lawmakers [recently] used their authority to block a declaration of martial law by the president. Many countries have strict measures to prevent power seizures," Prayut said.

In response to Anutin Charnvirakul, leader of the Bhumjaithai Party, who argued that a lack of corruption in politics would prevent a coup, Prayut said the intention was to involve political parties in preventing coups. However, if political parties disagree, it must be reconsidered.

He added that while some believe this draft law may not effectively prevent a coup, it is his personal view that it could help prevent one to some extent.

Regarding moving forward with the proposal, Prayut emphasised that he is not afraid of conflict with the military but must respect public opinion. If society does not support the bill, it must be reconsidered

Pheu Thai offers to withdraw bill to reduce military’s power

Efforts to block malicious apps declared successful

Ministry of Digital Economy and Society teams up with Google to shield Thai internet users from dangerous cyber threats

The Thai government in collaboration with Google has successfully blocked over 4.8 million attempts to install dangerous applications on more than 1 million Android devices.

The joint effort, which leverages Google Play Protect’s advanced security features, aims to safeguard Thai citizens from cyber threats.

Deputy government spokeswoman Sasikan Wattanachan highlighted the government’s commitment to addressing cyber threats. By partnering with Google, the Ministry of Digital Economy and Society (DE) has strengthened the nation's cybersecurity posture.

Google Play Protect acts as a proactive shield, detecting and blocking potentially harmful apps, such as those designed to steal personal information or drain funds, before they can compromise user devices.

Since its launch in April this year, the system has successfully thwarted attempts to install over 41,000 malicious apps, including fake messaging, e-commerce, and gaming applications.

“By combining the government's commitment to public safety with Google's technological expertise, we aim to create a digital environment that is both secure and empowering for Thai citizens,” Sasikan said. “This collaboration underscores our shared vision of a future where technology benefits everyone, without compromise."

Google Play Protect's enhanced security measures are particularly effective in preventing the installation of risky apps downloaded from unknown sources, such as web browsers, messaging apps, or file managers.

These apps often exploit vulnerabilities to gain access to sensitive personal data, which can be exploited for financial fraud and other malicious activities.

Efforts to block malicious apps declared successful

Cabinet approves new laws for 15% minimum corporate tax

Move expected to attract investors and boost revenue by THB10 billion

The Thai Cabinet has approved two new laws aimed at implementing a minimum corporate tax rate of 15% in alignment with OECD guidelines.

This significant move involves the endorsement of the Supplementary Tax Act 2 and modifications to the criteria of the Competitiveness Enhancement Fund.

The measures are anticipated to generate over 10 billion baht in annual revenue by providing clear guidelines, which are expected to enhance Thailand's attractiveness to investors.

During a Cabinet meeting on Wednesday, details emerged regarding the approval of draft decrees focused on corporate tax reform.

The new regulations will enable the collection of taxes from foreign juristic persons investing in Thailand, in accordance with the global minimum tax principles of the Organisation of Economic Cooperation for Development (OECD).

The approved legislation includes:

The Marginal Tax Act

The Act on Enhancing the Competitiveness of Target Industry Countries

Following this approval, the new regulations will be publicly announced ahead of the deadline for implementation in 2025 and subsequently reported to the House of Representatives for acknowledgement.

Deputy Finance Minister Julapun Amornvivat emphasised that the enactment of this tax legislation is crucial for economic stability and does not require extensive prior notification for the public. He assured that procedures for announcement and implementation would be followed promptly.

The global minimum tax is a principle accepted by over 100 countries in accordance with the OECD guidelines. Thailand has seen a rise in inquiries from foreign investors regarding this tax landscape.

Julapun noted, "A clear announcement on this measure will enable investors to decide whether to pay taxes in Thailand or in their home countries."

"This measure is considered beneficial as it not only clarifies the investment climate but is also expected to generate additional revenue for the country of more than 10 billion baht per year," he added.

Cabinet approves new laws for 15% minimum corporate tax

PM to chair Pheu Thai party meeting in Hua Hin on Friday

Prime Minister Paetongtarn Shinawatra will take a day away from matters of government this Friday, so she can chair a general meeting of the Pheu Thai Party in Hua Hin.

Also attending will be former prime ministers Thaksin Shinawatra, her father, and Srettha Thavisin.

Paetongtarn will travel to Hua Hin by train, departing from Bangkok in the morning, stopping at Bang Bamru railway station to pick up her family, who will include members of her sister, Pinthongtha Shinawatra Kunakornwong’s family and her elder brother, Panthongtae Shinawatra.

PM to chair Pheu Thai party meeting in Hua Hin on Friday

National Defence Organisation Act to undergo further revisions

Defence Ministry Administration Act also requires improvements before going channels, Defence Minister Phumtham says

The Pheu Thai Party would not face another military coup if all parties understand that global society has changed, Digital Economy and Society Minister Prasert Jantararuangtong said on Wednesday.

His comment came in response to Pheu Thai MP Prayut Siripanich’s draft National Defence Organisation Act, which grants the Cabinet the power to consider appointing senior military officers to prevent a coup.

However, later Prayut revealed that he would propose withdrawing the draft for further revision during the Pheu Thai Party’s meeting on Thursday morning, December 12.

Prasert confirmed that the draft act can be proposed to the House of Representatives, but it should first pass political party screening. He believes that Prayut’s move to withdraw the draft bill relates to further revision.

“Lawmakers should clarify during the political party meeting the importance and details of their proposed draft bills,” he said, adding that draft bills usually first go to the government whip’s for consideration.

Prasert did not expect another military coup to happen, saying that if all parties understand that the global society has changed, there should be no more military coups for whatever reasons.

He also asked all parties to think thoroughly before acting, noting that the country has had to face up to several issues.

Prasert added that a draft of the Defence Ministry Administration Act proposed by former Defence Minister Sutin Klungsang should pass the lawmaking process and public hearings before being proposed to the House of Representatives.

Sutin’s draft act allows the Prime Minister to suspend any military personnel involved in planning a military coup.

Incumbent Defence Minister Phumtham Wechayachai also said Prayut planned to withdraw the draft National Defence Organisation Act for further revision.

He explained that the Pheu Thai Party has nothing to do with the draft act because it has not been proposed yet, adding that a delay would enable Prayut to improve the draft act appropriately.

He refused to comment on the areas Prayut should adjust in his draft bill, merely saying that it should meet the demands of the people.

Addressing Sutin’s draft of the Defence Ministry Administration Act, Phumtham said he had discussed it with relevant agencies who all agreed that it should be improved.

Deputy Defence Minister Gen Natthaphon Nakphanit has acknowledged issues for consideration, he said, adding that the revision should be conducted as soon as possible to ensure a smooth process.

Phumtham confirmed that Thailand already has laws for military coup prevention stricter than the draft Defence Ministry Administration Act.

The Constitution stipulates that a military coup is not right, he said. He asked all parties to seek ways to prevent military coups, such as developing a culture of democracy similar to other countries.

“I believe that Thai democracy has developed over time but development should be constant,” he said.

As for House Speaker Wan Muhamad Noor Matha’s suggestion to adopt the South Korea model for tackling military coups, Phumtham said there are many ways to solve this problem.

“We know that this problem exists in a democracy, but we have to look at the causes, not just propose one way and it will solve all the problems,” he said, adding that further development is necessary to reach a conclusion on the issues.

National Defence Organisation Act to undergo further revisions

2025 will be a year of ‘real possibilities’ for Thai people – PM

In a live broadcast to the nation today, Prime Minister Paetongtarn Shinawatra claimed that 2025 will be a year of “tangible, practicable possibilities and hope” for Thai people, as she detailed the Pheu Thai-led government’s performance over the past three months and laid out the projects it intends to implement going forward.

She began by saying that the first three months in office was a period of adjustment to policies and working style inherited from the previous administration of Prime Minister Srettha Thavisin.

She went on to say said that the Thai people have been embroiled in political conflicts for the past two decades, but they are now ready to move on together, to tackle the pressing problems facing the country, adding that her cabinet is a unified team, dedicated to working for the good of the people.

Such problems, she said, include the recent devastating flooding in northern and southern provinces, the government’s quick response to which alleviated the hardships of many of the flood victims.

Floods and drought are twin problems which have remained unresolved for a long time because they have not been tackled comprehensively, she said, adding that her government has adopted a new approach, by enabling public participation in problem solving and approaching neighbouring countries such as Myanmar.

PM2.5 air pollution is being addressed through a policy to boycott farm products from neighbouring countries which allow their farmers to burn farm waste.

On rice exports, which have been monopolised by major rice exporters, she said the government has amended regulations to make it possible for smaller businesses to export their grain without the need to have a silo or a warehouse capable of storing at least 500 tonnes.

The government is also working on legalising some historically ‘underground’ businesses, so they can be taxed, and on promoting the community-based liquor industry.

The prime minister said the government plans to invest in future industries and to train Thai students in the skills needed to transform the country into an AI hub in the region.

Also, she said the government will revive the “one district, one scholarship” program, by granting scholarships to talented students so they may study at top universities abroad, while promoting bi-lingual courses in district-level schools, with funding from the Government Lottery Office.

Her administration will also press ahead with cutting suburban train fares on all routes to 20 baht and developing housing projects for Thais, so that they can own their own home at an affordable price.

Regarding the “digital wallet” scheme, the prime minister offered her assurance that Thai people over 60 will receive the 10,000 baht cash welfare benefit before Chinese New Year, while other recipients will receive it as “digital” money.

2025 will be a year of ‘real possibilities’ for Thai people

PM calls for comprehensive flood mitigation measures in the South

Paetongtarn promises to visit flood-hit region again to oversee progress

Prime Minister Paetongtarn Shinawatra, during the Cabinet meeting on Wednesday (December 11), directed officials to develop comprehensive measures to address flood issues in the southern region and beyond, Jirayu Huangsub, spokesperson for the Prime Minister’s Office, revealed.

Following a close monitoring of the flood situation, reports indicate that conditions have improved overall, but heavy rainfall is expected in the South on Thursday. All relevant agencies have been instructed to remain vigilant and be prepared to respond accordingly.

The PM expressed gratitude to all ministries for their swift and coordinated efforts, particularly in expediting compensation payments, which have eased public concerns significantly.

However, with another round of heavy rainfall forecast for the Southern Region from Thursday (December 12) to Monday (December 16), residents in at-risk areas are urged to exercise caution, and officials have been directed to prepare for potential emergencies.

Paetongtarn reaffirmed her commitment to visiting the South to establish both short-term and long-term policies for systematic flood prevention and mitigation. In the meantime, the Flood, Storm, and Landslide Disaster Relief Operations Centre has been tasked with addressing urgent issues and compiling action plans for Cabinet approval to ensure sustainable solutions.

The PM was earlier accused of neglecting the South, as she had not yet visited the affected areas to meet with residents since the flooding began.

PM calls for comprehensive flood mitigation measures in the South

Palang Pracharath party expels 20 renegade MPs

Twenty renegade opposition Palang Pracharath party MPs had the whip withdrawn yesterday for breaching the party’s regulations.

The expulsions of the MPs, who are loyal to former secretary-general Thammanat Prompao, were approved by the party’s executive committee and the remaining MPs.

According to the party’s rules, at least three quarters of the combined votes of the executive committee and MPs are required to withdraw the party whip from a sitting member.

According to the Political Parties Act, an MP who has the whip withdrawn must become a member of another party within 30 days. Otherwise they lose their seat in parliament.

Atthakorn Sirilatthayakorn, one of the expelled MPs, said that the withdrawal of the whip stems from ideological differences between the group and the party.

He said that the group is yet to decide which party they will join, but claimed that the Kla Dham party is ready to welcome them.

Agriculture Minister Narumon Pinyosinwat, leader of the Kla Dham party, confirmed today that the party is ready to accept them all.

In September, Thammanat and six MPs loyal to him quit the executive committee of the Palang Pracharath party. Thammanat’s brother, Akkara, was appointed deputy agriculture minister in the Pheu Thai-led government.

Palang Pracharath party expels 20 renegade MPs

Thai businesses satisfied with govt’s achievements in first 90 days

Business sector praises the administration’s initiatives, but wants to see more robust economic stimulation measures in 2025

The Thai business sector is generally satisfied with what the current government has done in the 90 days since Prime Minister Paetongtarn Shinawatra took the helm, but is urging clear economic stimulation plans for next year, especially in provinces with high potential.

Paetongtarn on Thursday highlighted the government’s achievements over the past 90 days in the event titled “2025 Empowering Thais: A Real Possibility” held in Bangkok.

After the event, the Thai Chamber of Commerce (TCC) chairman Sanan Angubolkul said the government has achieved several tangible milestones in the past three months, especially in tourism and soft power promotion.

“I commend the government for its efforts in pushing various measures to help the Thai tourism sector grow again,” he said. “These include the cancellation of visa requirements for many countries, as well as streamlining procedures and improving immigration services, particularly at Suvarnabhumi Airport, to enhance efficiency.”

Sanan said the government’s promotion of soft power, including food, major events and festivals, has led to over 32 million foreign tourists visiting Thailand. “With further planning and proactive publicity efforts, we could see the number of tourists reaching 40 million next year,” he added.

The TCC chairman also applauded the government’s efforts in attracting international corporations to invest in Thailand’s emerging industries, including data centres, cloud services, electric vehicle manufacturing and semiconductors.

“Although the tackling of household debt issues and public debt figures have not improved as expected, the government’s efforts are evident, particularly in listening to feedback from the private sector,” he said. “The TCC believes that debt restructuring measures, aimed at housing and auto loans, will eventually alleviate household debts, create opportunities and reduce inequality.”

Sanan urged the government to come up with clear plans to stimulate the economy next year, with a focus on promoting investment and tourism in provinces with high potential with the aim of distributing income to the grassroots economy and reducing inequality.

Meanwhile, the major challenge of resolving debt problems needs to be addressed, with specific measures put in place for each debt category. This requires cooperation from all sectors, including the government, financial institutions, relevant private sector organisations, and the public, he said.

Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), added that besides attracting foreign investors to Thailand, the government has also succeeded in negotiating free trade agreements with more trade partners, including the European Free Trade Association (EFTA).

“The government has passed the test in foreign trade promotion,” he said. “However, there are areas that still need to be urgently addressed, such as stimulating the economy and reducing costs for businesses, including electricity and energy costs.”

Kriengkrai urged the government to allow the private sector, which uses a significant amount of electricity, to participate in the energy price restructuring of the Energy Regulatory Commission, so that businesses can compete sustainably.

The FTI chairman also urged the government to increase ease of doing business by abolishing outdated laws and regulations, and increase inspections of imported goods to prevent the influx of cheap, substandard or falsely declared products that could harm domestic businesses.

Thai businesses satisfied with govt’s achievements in first 90 days

Thaksin urges police to cleanse Prachin Buri of “dark influences”

Ex-PM Thaksin Shinawatra urged the police today to crack down on “dark influences” in Prachin Buri following the fatal shooting of former provincial councillor Chaimet Sitthisanitphong at his stepfather's house on Wednesday night.

Chaimet was shot to death at the house of his stepfather, Sunthorn Wilawan, who is the mayor of the Prachin Buri Provincial Administrative Organisation (PAO).

Sunthorn was present when the killing occurred. An autopsy revealed that Chaimet’s body was riddled with bullet wounds.

Thaksin praised the local police for their swift response to the violent incident, by taking into custody all seven people who were in the house at the time of the shooting, including Sunthorn.

Sunthorn’s daughter, Kanokwan, is a former Bhumjaithai party-list MP and former deputy education minister in the government of General Prayuth Chan-o-cha.

She was not at the house at the time of the shooting.

Thaksin told the media that Prachin Buri province has been the political turf of Sunthorn for a long time and the local politics there are known to be violent, occasionally resulting to fatalities when local politicians fail to settle their conflicts peacefully.

Referring to a leaked audio clip, purportedly to contain a conversation between the deceased and an aide of Thaksin, the former prime minister disclosed that Pheu Thai members in the province wanted Chaimet’s wife to run for a seat on the PAO and this arrangement had been settled with Sunthorn.

Chaimet’s wife decided to pull out of the race, he said, adding that he suspected that Chaimet was summoned to Sunthorn’s house on Wednesday night to settle the issue over the PAO candidacy.

Following the shooting, Thaksin said the Pheu Thai party is yet to decide whether to field another candidate in the PAO election.

He admitted that local politics has, for a long time, been plagued by violence in many provinces and, this time, he said police should set an example by cracking down hard on local organised crime figures.

Asked whether the Pheu Thai party will contest PAO elections in the southern provinces, he said that the party has no political base of support in the region.

Thaksin urges police to cleanse Prachin Buri of “dark influe

Thaksin joins Pheu Thai train trip to seaside seminar

Patriarch joins daughter, PM Paetongtarn, and ruling party MPs for meeting in Hua Hin

Thaksin Shinawatra joined his daughter, Prime Minister Paetongtarn Shinawatra, on a train taking Pheu Thai MPs and politicians to a party seminar in Hua Hin on Friday.

The former prime minister stepped onto the specially chartered train at Bang Bamru station in Bangkok’s Bang Plad district, joining Paetongtarn and Pheu Thai MPs who had boarded at Hua Lamphong.

Passengers on the five-carriage Royal Blossom train included Paetongtarn’s husband, Pitaka Sukawat, her brother Pantongtae, and elder sister Pintongta. Paetongtarn and her siblings also brought their children along.

The ruling party will meet on Friday and Saturday in the seaside town south of Bangkok.

Thaksin joined the trip despite being investigated for allegedly dominating the party as an outsider, in breach of the Political Party Act.

Paetongtarn and Pheu Thai ministers and MPs began arriving at Hua Lamphong station at 7am. Those present included Deputy PM and Defence Minister Phumtham Wechayachai, Deputy PM and Transport Minister Suriya Juangroongruangkit, Public Health Minister Somsak Thepsutin and Culture Minister Sudawan Wangsuphakijkosol.

Srettha Thavisin, Paetongtarn’s predecessor as PM, arrived at 7.15am and was greeted by Pheu Thai MPs and ministers who took selfies with him.

At 8am, Suriya reported to Paetongtarn on the progress of rail development across the country.

Paetongtarn thanked Suriya for organising the trip and overseeing rail upgrades, noting that it was the first time she had travelled by train in 20 years.

After posing for a group photo, the delegation departed Hua Lamphong at 8.30am.

Thaksin boarded the first carriage 50 minutes later, greeted by Paetongtarn and Srettha who were standing at the doors. He hugged and kissed his daughter, before posing for a photo of the “three prime ministers”.

Thaksin then walked through the five carriages, greeting Pheu Thai MPs and members before sitting with his children and grandchildren. The Pheu Thai patriarch is due to give a motivational speech at the Hua Hin meet.

Thaksin joins Pheu Thai train trip to seaside seminar
Paetongtarn hosts Hua Hin seminar with Thaksin joining as sp

Government to help 1.9 million small debtors and SMEs

Debtors of commercial banks or non-bank institutions can now apply for help from the government to reduce their repayment burden under the “khunsoo rao chuay” (you fight, we help) program, created jointly by the Finance Ministry and commercial banks, both private and state-owned.

The program is the result of collaboration between the Finance Ministry, the Bank of Thailand, the National Economic and Social Development Council, the Thai Bankers Association, the International Bankers Association, the Government Financial Institutions Association and others.

According to the Finance Ministry, the program is targeting 1.9 million small debtors and enterprises, with combined total indebtedness amounting to about 890 billion baht. The program is expected to reduce Thailand’s household debt by about 10%.

Debtors can now register for help via, https://www.bot.or.th/khunsoo

There are two measures to help debtors. One is called “jaitrong kongsap” (direct pay, keep assets) and is designed to help debtors with mortgages or car loans and small enterprises through refinancing, to reduce their monthly repayments, and interest moratoria for three years.

Debtors will be required to pay 50% of the principal portion of their monthly repayment obligation for the first year, increasing to 75% for the next year and 90% thereafter, while interest payments will remain frozen for three years on the condition that the debtors are punctual making their repayments and do not seek new loans for the first year of the program.

The second measure, called “pay, close”, is designed to help those who have delinquent debt, not exceeding 5,000 baht, to settle their repayment obligations through refinancing.

According to Finance Minister Pichai Chunhavajira, funding for the “khunsoo rao chuay” program, amounting to about 39 billion baht, will come partly from contributions by commercial banks to the Financial Institutions Development Fund (FIDF) and partly from the 38.9 billion baht compensation fund from the government to six state-owned banks.

Government to help 1.9 million small debtors and SMEs

Pichai rules out VAT hike to 15%, considers product-based tax reform

Finance Ministry ‘exploring ways to modernise tax structure’

The Thai government has firmly dismissed speculation of a steep increase in the value-added tax (VAT) rate to 15%.

Finance Minister Pichai Chunhavajira has outlined plans to carefully consider a more nuanced approach to tax reform, potentially involving product-based tax rates.

In a television interview on Friday, Pichai emphasised that the Ministry of Finance is currently exploring options to modernise the country’s tax structure.

While acknowledging the global trend of increasing tax rates to address inequality and reduce national debt, he stressed that any changes to Thailand's VAT system would be implemented cautiously and in line with the country's economic conditions.

The minister identified three key areas of focus for VAT reform:

• Product-based tax rates: Implementing differentiated tax rates based on the type of product, with luxury goods potentially subject to higher rates.
• Global trends and economic context: Aligning Thailand's VAT policy with global trends while considering the nation's economic health.
• Social equity and infrastructure investment: Allocating additional revenue generated from VAT to support low-income groups and fund infrastructure projects to reduce the cost of living.

Pichai clarified that the 15% figure was merely a hypothetical number used to stimulate discussion on global tax practices. He assured the public that the government is committed to a balanced approach to tax reform that promotes both economic growth and social equity.

Pichai rules out VAT hike to 15%, considers product-based tax reform

A look at 4 locations chosen by govt for ‘Houses for Thais’ campaign

Housing projects will be built on land owned by the SRT

Prime Minister Paetongtarn Shinawatra on Thursday said that the government would move forward with the “Baan Pheu Khon Thai” (Houses for Thais) campaign, aiming to provide low- and middle-income earners affordable housing near urban centres.

The campaign will develop housing and condominium projects on lands owned by the State Railway of Thailand (SRT), she said.

On Friday, the Transport Ministry said it would unveil specifications and models for houses and condominiums under the campaign on January 20 at Bangkok’s Krung Thep Apiwat Central Station.

The project will begin at four pilot locations, namely Bangkok’s Chatuchak district, Pathum Thani’s Chiang Rak area, near the Thonburi Railway Station in Bangkok, and in Chiang Mai province, Deputy Transport Minister Surapong Piyachote said.

The Nation looks at these four locations to provide details of projects that could fulfill the dream of owning a home for many Thais.

The first location, in Bangkok’s Chatuchak district, is located at Nikhom Rotfai Km 11, a housing project on Vibhavadi-Rangsit Road. The area includes an existing housing community and a vast public park.

The SRT has plans to further develop a mixed-use residential and commercial project on the 279-rai (44.64 hectares) empty plot here, with an investment budget of 100 billion baht, according to SRT Asset Ltd (SRTA), the rail authority’s asset management arm.

The second location is at Chiang Rak station in Khlong Luang district, Pathum Thani province. Chiang Rak is a hub for northern and northeastern routes for both normal and express trains, as well as future high-speed trains. The area is surrounded by Thammasat and Bangkok universities and many commercial buildings, making it a high potential area for housing development.

The third is located near the Thonburi Railway Station in Bangkok Noi district. It is also within walking distance from three electric train routes namely the Light Red Line (Taling Chan – Siriraj), Western Orange Line (Cultural Centre – Bang Khun Non), and Blue Line (Hua Lamphong – Bang Khae).

The SRTA said it planned to launch a redevelopment project on this land with private partners with a budget of 3.5 billion baht. The aim is to turn the 21-rai (3.36ha) plot into a medical district of western Bangkok, complete with a rehabilitation centre, a hotel, a shopping mall, and a service apartment.

The fourth location is the only one outside metropolitan Bangkok, in the northern province of Chiang Mai. The SRTA said the land around the Chiang Mai station in Muang district has high potential thanks to the large number of locals and tourists using that station each day.

There is about 60 rai (9.6ha) of land available around the station which has yet to be developed, the company said.

A look at 4 locations chosen by govt for ‘Houses for Thais’ campaign

Phumtham claims Pheu Thai and Bhumjaithai parties still getting along

Deputy Prime Minister Phumtham Wechayachai said today that the Pheu Thai and Bhumjaithai parties are still getting along well and continue to work together in the coalition government.

His remark was in response to former prime minister Thaksin Shinawatra’s criticism yesterday, without naming names, of two ministers from coalition parties, believed to be Bhumjaithai party leader Anutin Charnvirakul and Pirapan Salirathavibhaga, leader of the United Thai Nation party, for their failure to attend the cabinet meeting on December 11^th to discuss international tax issues.

Thaksin is reported to have said during a seminar that the ministers in question should resign, because they are not ‘with’ the government.

Phumtham said that Thaksin’s criticism was just the opinion of a senior politician about what is appropriate or inappropriate, adding that the former prime minister has no formal role in the current administration.

He also said that he does not know whether Thaksin’s remark was meant as a warning for interior minister Anutin.

Phumtham claims Pheu Thai and Bhumjaithai parties still gett

Thailand's digital economy booms amid surge in foreign investment Accounts for nearly a quarter of national GDP

Thailand's digital economy has taken off, driven by increased foreign investment and government initiatives, Minister of Digital Economy and Society (DE) Prasert Jantararuangtong said on Friday.

This follows recent investments from tech giants such as Google, Microsoft and Datamax, which have collectively invested over 100 billion baht in AI and data centres.

The DE Ministry has released for the first time figures on Thailand's digital economy.

In 2024, the sector contributed 4.44 trillion baht to the economy, a 5.7% increase over the previous year, outpacing the overall GDP growth rate. The ministry has forecast continued growth, with an estimated 2.6% increase in 2025.

The digital economy now accounts for a substantial 23.9% of Thailand's GDP, also contributing to the country's export growth with sales of digital goods and services valued at 44.60 billion baht.

To further accelerate the growth of the digital economy, the ministry has outlined three key initiatives:

Thailand'''s digital economy booms amid surge in foreign investment