Pheu Thai embarks on flagship policy initiatives

Pheu Thai shelves two key economic recovery policies, focuses on restoring ratings and dismantling 'blue' policies to regain public trust.

The political stability of the government, led by Prime Minister Paetongtarn Shinawatra, immediately diminished following the operation to seize control of the Ministry of the Interior.

This became a key factor that led the Bhumjaithai Party to take advantage of the "Hun Sen" audio clip scandal and announce its withdrawal from the coalition government.

As the Bhumjaithai Party holds 69 seats in the House of Representatives, making it the second-largest coalition party, the ruling coalition’s total seats have decreased from 324 to only 255, just 7 votes above the required majority of 248. This narrow margin has made managing parliamentary votes increasingly difficult.

Although the "coalition parties" have attempted to strike deals to gather support from opposition MPs, as well as negotiate with Bhumjaithai MPs to lure them into the fold, no MPs from the opposition bloc have publicly defected to the "government side."

Nevertheless, "Pheu Thai" has received confirmation from its "coalition partners" that it can sway "cross-floor MPs" both through party switching and arrangements to secure votes for key legislation. The anticipated vote count stands between 270-275 seats.

While the "ruling coalition" is confident that the number of votes, though slim, is sufficient to sustain "Paetongtarn's government" and deliver results ahead of the next election, the real challenge lies in stabilising and advancing policy.

Following the completion of the Cabinet reshuffle, which is expected in early July ahead of the parliamentary session on July 3, we may witness an acceleration of government work.

In particular, the implementation of key policies that "Pheu Thai" campaigned on during the 2023 election will likely need to be fast-tracked to honour campaign promises, as the party has a history of successfully delivering on its pledges.

New Cabinet's Mission: Accelerating Progress

At the Cabinet meeting on June 24, Prime Minister gave several directives on key policies, signalling an immediate push forward once the "new Cabinet" is in place.

The seven directives issued by Paetongtarn are as follows:

 
National Security Threats: Particularly regarding transnational crime linked to the Thai-Cambodian border issue.
Energy Security: Deputy Prime Minister and Minister of Energy, Pirapan Salirathavibhaga, was tasked with preparing measures to ensure energy reserves and support for citizens in case of shortages or price hikes.
Economic and Financial Issues: Deputy Prime Minister and Minister of Finance, Pichai Chunhavajira, was assigned responsibility for tackling citizens' debt problems. He is to discuss with both public and private sector agencies to set clear measures and goals.
Agricultural Prices: Pichai was also asked to consult with the Ministry of Commerce and the Ministry of Agriculture and Cooperatives to resolve issues regarding agricultural product prices, especially rice. Measures to assist farmers must be concluded quickly. Furthermore, the illegal importation of goods from neighbouring countries, which drives down domestic agricultural prices, should be tackled by the Customs Department, with a report and corrective measures due next week.
Drug Issues: Deputy Prime Minister and Minister of Defence, Phumtham Wechayachai, was tasked with organising an urgent meeting with the Prime Minister, provincial governors, and police commanders from all provinces. The aim is to clarify policies and make concrete plans, continuing the "Seal Stop Safe" programme with clear targets, to be rolled out by next week.


It is clear that drug suppression remains a key priority, driven by a desire to deliver swift results. This policy is crucial for former Prime Minister Thaksin Shinawatra, as feedback from the public has strongly indicated a need for urgent action.


Tourism: Minister of Tourism and Sports, Sorawong Thienthong , was instructed to propose measures to boost both domestic and international tourism within the next week.
Minimum Wage: The Ministry of Labour has been tasked with presenting measures to increase the minimum wage for Cabinet approval next week, aiming for implementation in early July. Pheu Thai has committed to fulfilling its campaign promise of raising the minimum wage, with an ultimate goal of reaching 600 baht per day by 2027. The Ministry of Labour was previously not under Pheu Thai’s control, which hindered progress on this initiative. Now that the ministry is in Pheu Thai’s hands, they are accelerating the wage hike immediately.


At the same time, key policies from Pheu Thai are set to be fast-tracked, such as the introduction of a 25,000 baht salary for bachelor’s degree holders, a 20-baht flat fare for Bangkok’s electric train network, and amendments to the Constitution.

Scrapping 2 “Flagship” Policies

Two "flagship" policies, which were not part of Pheu Thai's election campaign but were sparked by Thaksin Shinawatra with the aim of revitalising Thailand’s economy, may have to be shelved for now.

The main focus of these policies was the entertainment complex, which included a casino. Although the draft law was already on the parliamentary agenda, it appears that support from the coalition parties may be insufficient. Moreover, it faces the possibility of delays due to the scrutiny of the Senate, making it unlikely to proceed anytime soon.

Similarly, the land bridge project connecting the Gulf of Thailand to the Andaman Sea, designed to shorten transport times, also needs to be put on hold due to the timing constraints on passing the law before the parliamentary term ends.

As for the campaign promise of the "10,000 Digital Wallet," which had gained traction in the final stretch before the election, it too is being put on ice. 

Revamping and Scrapping the "Blue Party" Legacy

In addition to pushing forward Pheu Thai's own policies, the government is also focused on dismantling the legacy of the "Bhumjaithai Party" to remove political obstacles, particularly the entrenched "blue network" in various organisations, especially within the Ministry of the Interior. This could involve cleansing the "big civil servants" who rose through the ranks during the Bhumjaithai era.

A key case to watch is the land dispute over the Khao Kadong property, involving the Chidchob family, which is a long-standing issue between the State Railway of Thailand and the Department of Land. With Pheu Thai now in control of the Ministry of the Interior, this dispute could potentially be resolved, enabling the government to reclaim both the land and the Chidchob family’s influence.

Furthermore, the "liberal cannabis" policy from Bhumjaithai, which has now been reversed, is being reclassified as a controlled substance. The Health Minister is instructed to accelerate efforts to regulate cannabis more strictly, focusing on its use solely for medical purposes.

These are the immediate tasks for the "Pheu Thai government," which must deliver results quickly to regain public trust and boost popularity. If it fails to do so, the party faces a real risk of a crushing defeat in the next election.

(2025/06/26-00:00)