Thaksin’s 37-Year-Old Daughter Set to Become New Thai Premier

(Bloomberg) -- Former Thai leader Thaksin Shinawatra’s daughter is set to become the Southeast Asian nation’s next prime minister, signaling policy continuity after another party member was ousted from the top job on Wednesday.

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Paetongtarn Shinawatra, 37, will contest a parliamentary vote on Friday as the nominee of a multi-party group led by Thaksin’s Pheu Thai Party. Her nomination was endorsed by the 11-member coalition that has more than 300 members in the 500-member House of Representatives, Pheu Thai Secretary-General Sorawong Thienthong told reporters.

The election of a new leader was necessitated by the dismissal of Srettha Thavisin as prime minister in an ethics violation case.

The youngest of Thaksin’s three children, Paetongtarn is the latest face of the influential Shinawatra clan that has dominated most Thai elections but routinely been booted out of office. She is set to become the second woman to become Thai prime minister after her aunt Yingluck Shinawatra.

The elevation of Paetongtarn to the top job came after Srettha’s 11-month-old tenure saw his party’s popularity sliding and that of the now-disbanded Move Forward — the principal opponent of the pro-royalist establishment — steadily rising. The Shinawatra scion, in the company of her still popular father, is expected to counter the rise of the opposition People’s Party that’s seeking to reform lese majeste — a law that protects King Maha Vajiralongkorn and other top royals from criticism.

Thai Political Upheaval Shows Royalists Are Still in Charge

Some of the nation’s biggest pro-royalist conservative parties on Thursday rallied behind Pheu Thai, which is effectively controlled by Thaksin and his family, in a sign that a deal that brought the former leader back to Thailand following a prolonged exile was still intact.

“Paetongtarn’s nomination and support from coalition shows that the uneasy Pheu Thai-conservative pact still holds for now,” said Peter Mumford, Southeast Asia practice head at Eurasia Group. “But her ascendancy to the premiership would not end political stability risks in Thailand.”

A relative newcomer to politics — she formally joined Pheu Thai only in 2021 — Paetongtarn, popularly known as Ing, will also be the youngest Thai prime minister.

Economic Challenges

Paetongtarn’s appointment signals few changes to policies pursued by Srettha’s administration, which focused on bolstering growth through looser fiscal policies and tackling the high cost of living and near-record household debt. She’s advocated for lower interest rates and slammed the central bank, saying its autonomy posed an “obstacle” to resolving the country’s economic issues.

On Thursday, Paetongtarn vowed to “do everything in my capability” to pull Thailand out of the “economic crisis” with the support of the coalition. On her party’s controversial plan to distribute 10,000 baht ($286) each to an estimated 50 million adult Thais to stimulate the economy, she promised to review the plan once she takes power.

Other challenges awaiting the alumnus of the University of Surrey include finding ways to lift average annual economic growth of below 2% over the past decade, attract foreign investment into high-tech industries and stem the exodus of foreign funds from the nation’s stocks.

Thailand’s benchmark stock index is among the world’s worst performers this year with foreign funds withdrawing more than $3 billion during the period. The baht has lost about 2.7% this year, and foreign investors net sold $244 million of bonds in a sign that the notes are losing their appeal.

Paetongtarn’s experience in the private sector may come in handy in steering the economy. She was a key player in the Shinawatra business empire spanning a golf course and real estate to hospitality and telecommunications. She is listed as the largest shareholder of publicly traded property firm SC Asset Corp Pcl, with a 28.5% stake, according to data compiled by Bloomberg.

She is also chief executive officer of the hotel business of Rende Development Co., which cites the luxurious Rosewood Hotel in Bangkok as a major project.

Before assuming the premier’s role, Paetongtarn will need to relinquish her business roles and comply with share ownership rules, according to Thai laws.

(Updates with comment from analyst in seventh paragraph.)

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