|
|
|
|
Cabinet reshuffle in
Thailand
By Daniel Ten Kate,
ThaiDay
BANGKOK - Thai Prime Minister
Thaksin Shinawatra's decision to swap his finance
and commerce ministers represents no change in
policy, but puts the economic duo in positions
that better reflect their strengths.
New
finance minister Thanong Bidaya last held the
position in 1997, when he oversaw the float of the
baht that led the country into a financial crisis.
"The reason why he did not get the finance
portfolio earlier is because of this supposed
stigma attached to the 1997 financial crisis," a
government source said. "But now they think that
is no longer a problem. Thanong is more
experienced in financial and fiscal matters."
Somkid Jatusripitak has taken over as
commerce minister and retains his position as
deputy prime minister, which commerce officials
say will allow their initiatives to gain approvals
faster. Sources said Somkid felt "strained" at the
finance ministry and wanted to take the commerce
portfolio so he could focus on revamping the
bureaucracy to better promote exports.
Apart from the slight tweak in his
economic team, Thaksin's long-awaited Cabinet
reshuffle has not done much to restore public
confidence or improve investor sentiment. Analysts
were disappointed that the premier refused to sack
scandal-ridden Suriya Jungrungreangkit, opting
instead to make him industry minister and a deputy
prime minister. Suriya has become a symbol of
shady government dealings after corruption
allegations surfaced in the purchase of CTX 9000
bomb scanners for Suvarnabhumi Airport. "The most
important thing they needed to do to regain
investor confidence was to show that they are a
clean, transparent administration," said Anusorn
Thammajai, a BankThai economist. "They did not
really do that. The reshuffle will have no
significant impact on the economy."
Somkid
and Thanong have worked together closely over the
years, and government officials expect that to
continue. Both received graduate degrees in
business from Northwestern University and taught
at the National Institute of Development
Administration. The two reportedly worked closely
over the weekend to reach a basic agreement on a
free-trade deal with Japan.
Officials
close to both Somkid and Thanong say that their
new positions are a better fit. Somkid is seen as
more of a "marketing man" who can work at
implementing the various bilateral free-trade
agreements that the government is negotiating. He
is expected to handle the export promotion
department himself and pay close attention to
whether Thai exports to Japan are facing
non-tariff barriers, one of the key components of
the recent free-trade agreement with Tokyo.
Thanong has been described by officials as "a
worker" who is more comfortable crunching numbers
than giving speeches. "Thanong has always been the
prime minister's top finance guy," one official
said.
With the current account deficit and
inflation on the rise, analysts expect Thanong, a
banker, to be more fiscally conservative than his
predecessor. The government's planned investment
projects, which have been grandiosely played up in
presentations to foreign investors, have already
been delayed due to larger-than-anticipated trade
and current account deficits.
The
opposition saw the cabinet move as little more
than political backslapping and questioned whether
the new cabinet would talk less and produce more.
Korn Chatikavanij, a Democrat member of parliament
(MP) and former head of JP Morgan's country
operations, said Thaksin's Cabinet changes have
done nothing to restore public confidence in the
government and that the size of the
current-account deficit will dictate the
implementation of the so-called megaprojects much
more than who serves as finance minister. "The
reality is that the megaprojects are just an
assortment of many uncoordinated projects from
various ministries," Korn said. "The prime
minister talks loosely to foreign investors about
internal rates of return on the projects of about
10-15%, but they really have no clue."
(Copyright 2005
ThaiDay) |
|
|
|
|
|
|
|
 |
|
|
|
|
|
All material on this
website is copyright and may not be republished in any form without written
permission.
© Copyright 1999 - 2005 Asia Times
Online Ltd.
|
|
Head
Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong
Kong
Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
|
|
|
|
