Srettha Thavisin: How Thailand’s first civilian PM in decade swiftly lost job

Srettha Thavisin earned the distinction of becoming Thailand’s first civilian prime minister in nearly a decade when he was sworn in last September.

He did not last even a full year.

Thailand’s Constitutional Court removed him as prime minister on Wednesday, after ruling that he committed an ethical violation when in April he appointed a cabinet member with a criminal record.

Thai lawmakers elected Srettha prime minister after three months of political intrigue and uncertainty, after nominations for Pita Limjaroenrat, the leader of the reformist Move Forward Party that was the largest set winner, were blocked twice.

Srettha’s Pheu Thai party had placed second in the country’s national polls, but dumped Move Forward as a partner in a potential ruling coalition and formed one with pro-royalist and pro-military parties.

Pheu Thai had nominated Srettha, a real estate tycoon, as its prime ministerial candidate in early August 2023 to a less than rousing reception from activists and critics. 

They questioned his past business practices, accusing him of tax evasion, money laundering, and committing fraud, among other offenses.

Srettha denied any accusations of wrongdoing.

Srettha was elected just hours after the party’s patriarch, former Prime Minister Thaksin Shinawatra, had returned to Thailand after 15 years of self-exile following accusations of corruption and abuse of power.

Soon after being sworn in, Srettha’s government was accused of giving Thaksin special treatment by allowing him to stay at a Bangkok hospital for six months after the former leader’s sentence had been reduced to a year from eight  on a corruption conviction. Thaksin has since been freed from parole. 

Some analysts said Srettha’s government did not have an interest in challenging the policies of the country’s military, much less advocating for monarchy reform.

For some, Srettha’s ascension to power merely reaffirmed that the country’s ruling establishment retained a strong grip on power, as it dashed the hopes of millions of Thais who had voted for a progressive, pro-democracy government after years of military takeovers and political instability.

Srettha’s government continued to use Article 112, the country’s lèse-majesté or royal defamation law, which the previous administration had relied on to quell  pro-democracy protests in 2022 protests.

Activists also accused his government of systematically helping weaken the opposition by swarming them in court cases.

Srettha was pro-active in one area, though – the economic sector.

He said he wanted to revitalize Thailand’s economy, which is Southeast Asia’s second largest. And analysts said he tried to achieve this with populist policies, starting mega-projects and traveling the world touting the country as a prime investment destination. 

But some observers and local business owners said his government had failed to deliver on its economic promises by ignoring the country’s deeper problems.

Part of his strategy to kickstart growth was a cash handout program – also called digital wallet scheme – under which eligible citizens would be given 10,000 baht (U.S. $275) each – once.

He was borrowing a page from the populism playbook that made Thaksin a popular prime minister two decades ago.

But some analysts and the main Thai opposition party criticized the plan, asking how the government planned to raise money for the 500 billion baht ($13.7 billion) program. They also said that far from reinvigorating the economy, the cash handout scheme could have financial implications, and may not be sustainable.

Additionally, Srettha’s visit to Paris in May, purportedly to raise Thailand’s investment profile to to world leaders and prospective investors, was controversial at home because it was the PM’s second visit to the French capital in two months.

Meanwhile, Thailand’s economic growth remained sluggish, at only 1.5% in the first quarter, according to the National Economic and Social Development Board (NESDB). The board warned this could be its state all year, because of high household debt, non-performing loans, climate change that could affect agricultural output, and China’s slow economic growth.

Another piece of Srettha’s economic program was a flagship mega-project to construct a land bridge across the Kra Isthmus, with state-of-the-art sea ports at either end.

This passage, the government said, would offer international shippers a shortcut between the Gulf of Thailand and the Andaman Sea bypassing the Strait of Malacca. 

Srettha’s government also planned to raise the national minimum wage to 400 baht ($10.90) per day, but dozens of business groups warned against it, saying such an increase could potentially lead to widespread job losses and increased inflation.