Srettha hands Thaksin’s ex-lieutenant Pichai keys to economy
After Prime Minister Srettha Thavisin announced his new Cabinet list on Sunday, the post that drew the most attention was that of the new finance minister, who has the urgent task of reviving the economy.
Another fact that caught the most attention was that the post went to none other than Pichai Chunhavajira, the former lieutenant of ex-prime minister Thaksin Shinawatra.
The job at hand for Pichai is implementing the controversial policy of handing out 10,000 baht to some 50 million Thais via the digital wallet scheme.
He is also seen as a possible mediator between Prime Minister Srettha Thavisin and the Bank of Thailand. Over the past seven months, when Srettha concurrently held the post of finance minister, he has been locking horns with the central bank over reducing the policy interest rate from 2.5% per annum.
With Pichai at the helm and with his long experience in economic affairs, it is expected that the ties between the Finance Ministry and the BOT will improve.
Pichai stepped down as chair of the Stock Exchange of Thailand’s board of governors last week before his appointment as finance minister was officially announced.
Pichai is no stranger to the Shinawatra clan, which is believed to be in control of the coalition leader Pheu Thai Party.
As lieutenant for then-premier Thaksin, Pichai helped with the privatisation of PTT Plc in 2001.
Pichai also served as a key defence witness when Thaksin’s sister, former PM Yingluck Shinawatra, was tried in absentia in 2014 in a malfeasance case related to her government’s rice-pledging scheme.
Pichai worked as PTT’s chief financial officer from 2008 to 2009 before retiring.
Apart from serving as Thaksin’s economic right-hand man, Pichai also served Yingluck when she was prime minister.
He is known to have been behind several key economic policies during Yingluck’s tenure.
As he has served under two Shinawatra PMs, it is no surprise to see him being picked as the new finance minister for the Pheu Thai-led coalition now.
Meanwhile, Pichai has been in support of the digital wallet scheme since the time Srettha announced his government would go ahead with it.
He was among the first to come out to say when the scheme would be implemented and advised that it be handed out via a new super app. Nobody in the Cabinet went against his statement.
The implementation of the 500-billion-baht digital wallet scheme will be one of his biggest and most urgent missions, as the government believes the scheme will give the economy a boost and even push the growth up to 5%.
Pichai will have to employ his expertise as an accountant to manage the fiscal 2024-2025 budget to finance the 500-billion-baht scheme. In particular, he needs to draw 175 billion baht from the national budget to finance the scheme without affecting the other investment projects.
He will also have to plan other fiscal measures to sustain growth while restoring good ties with the central bank.
