Srettha’s ouster as PM rattles private sector, investors

The Constitutional Court ruling removing Srettha Thavisin from the prime minister’s post over the appointment of Pichit Chuenban as PM’s Office minister has caused ripples in the private sector.

Kriangkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), noted that the court’s ruling has stunned investors and forced them to put their investments on hold.

Currently, Thailand faces pressing economic issues amid global uncertainties, and it’s crucial for the country to quickly restore confidence, attract new investments and engage both Thai and international investors.

“This is a critical period. For investors, political stability is paramount. We require stable and consistent governance. Frequent changes in political parties have disrupted the continuity of government policies, leading to a lack of consistency,” Kriangkrai said.

He acknowledged that investment has been delayed for over 80 days since the case began, with stakeholders waiting to see how the situation evolves. While the situation is being closely monitored, the impact varies across different industries.

Foreign investors, particularly from the US and Europe, are showing significant concern, which is prompting many businesses to seek clarity.

In contrast, investors from Asia, such as Japanese investors who have been in Thailand for 40 to 50 years, may begin to adapt and adjust their strategies.

“We must give the government led by Srettha over the past year a fair chance, as it came into power at a time of numerous global challenges, including trade wars, geopolitical issues and unprecedented shifts in production bases. Additionally, Thailand has long-standing structural problems. Nevertheless, [former] prime minister Srettha managed to come in, adapt quickly and start understanding and addressing issues within three to four months of his tenure,” the FTI chief said.

Srettha, who was in office for 11 months and 14 days, was removed by the charter court for breaching the code of ethics by appointing Pichit, who had served time in prison.