By Panarat Thepgumpanat and Chayut Setboonsarng
Thailand's King Maha Vajiralongkorn has endorsed Prime Minister Paetongtarn Shinawatra's new cabinet, the Royal Gazette showed on Wednesday, with 12 new faces in the 36-member lineup of her coalition government.
Paetongtarn, 38, was elected by parliament last month to become Thailand's youngest premier after the shock removal of predecessor Srettha Thavisin by a court.
Her Pheu Thai Party, which, together with previous incarnations, has led governments since 2001, remains the dominant force in the new cabinet, retaining Finance Minister Pichai Chunhavajira and Foreign Minister Maris Sangiampongsa.
Deputy premier Phumtham Wechayachai takes on the defence portfolio and has been replaced as commerce minister by top Pheu Thai adviser and former energy minister Pichai Naripthaphan.
Pheu Thai, the populist party of the billionaire Shinawatra family, has 17 of the cabinet positions, which include ministers and deputy ministers, with the remaining 19 divided among coalition partners.
The new cabinet could deliver its policy proposal to parliament as early as next week, the government's chief whip, Wisut Chainarun, told Reuters.
Those include an adjustment of Pheu Thai's signature policy to transfer credit of 10,000 baht ($292) to 50 million Thais via a smartphone application, some of which will now be delivered in cash.
Paetongtarn is the youngest daughter of the divisive ex-premier Thaksin Shinawatra, who is still widely seen as wielding power behind the scenes.
She is also the second woman and fourth family member to hold the top post, with the other three removed by coups or court decisions.
Pheu Thai will also control the transport, health, tourism and culture ministries, while the Bhumjaithai Party, the second largest in the alliance, received eight cabinet seats, including the ministries of the interior, education and labour.
Bhumjaithai has said it will push ahead with plans for a cannabis bill to regulate marijuana after its success in de-criminalising the narcotic sparked a boom in marijuana-related businesses.
The quick formation of the cabinet was a good sign and would help ensure a smooth rollout of stimulus measures, said Payong Srivanich, chairman of the Thai Bankers' Association.
"There are many parties but we believe there is unity. We will work together with the government," he said.
"Transferring money to the economic system quickly, especially to vulnerable groups, will create liveliness at the grassroots."
($1=34.2100 baht)
Analysis:
The endorsement of Thailand's new cabinet by King Maha Vajiralongkorn has significant implications for the country's political and economic landscape. The cabinet, led by Prime Minister Paetongtarn Shinawatra, includes key figures from the Pheu Thai Party, which has been a dominant force in Thai politics for years.
The policy proposals of the new cabinet, including the adjustment of financial aid distribution and plans for regulatory changes, will impact various sectors such as finance, healthcare, tourism, and cannabis-related businesses. This could lead to changes in investment opportunities and economic growth in Thailand.
The unity among coalition partners and the quick formation of the cabinet are seen as positive signs for the smooth implementation of stimulus measures and overall economic stability. The involvement of key industry players, such as the Thai Bankers' Association, indicates confidence in the government's ability to drive economic growth and support vulnerable groups.
Overall, investors and individuals should closely monitor the developments in Thailand's new cabinet and its policy decisions, as they can have a direct impact on financial markets, investment opportunities, and the overall economic outlook of the country.
