THe ruling party and its top coalition partner are clashing over a key ministerial post, as a looming Cabinet shakeup by Prime Minister Paetongtarn Shinawatra threatens to shift alliances and unsettle the conservative establishment.
The feud between Thailand’s ruling Pheu Thai Party and its conservative coalition partner Bhumjaithai escalated this week, with Bhumjaithai leader Anutin Charnvirakul threatening to quit the alliance if he loses the Interior Ministry post.
The ruling party has countered by warning it may expel Bhumjaithai if it rejects a proposed swap of two Pheu Thai posts for Anutin’s role by today, according to a local media report.
“Bhumjaithai certainly won’t give it up,” Anutin said after a Cabinet meeting Tuesday when asked about the feud.
“If you don’t keep up your end of the bargain, it will be difficult for you to form a government in the future,” he said.
Paetongtarn didn’t respond to questions about Anutin’s threat.
The risk of a fresh spell of political instability may weigh on foreign investors who have dumped Thai stocks on concerns the US threat of a 36% tariff will worsen the outlook for growth and hurt company earnings.
Thailand’s benchmark stock index is down 20% this year and is among the worst performers globally.
Bhumjaithai’s exit, though unlikely to bring down the government, could weaken the fragile coalition formed through a deal between royalist conservatives and ex-Prime Minister Thaksin Shinawatra, the ruling party’s key power broker.
The pact let Thaksin return from 15 years of self-imposed exile after he fled in 2008 to avoid corruption charges.
The interior minister post, which oversees local administration, is seen as one of the most powerful roles in the Cabinet.
It offers access to local power brokers seen as crucial to shaping future elections, with the next vote expected in 2027.
Without Bhumjaithai’s 69 lawmakers, the Pheu Thai-led coalition would hold only a slim majority, down from nearly two-thirds of the 500-member House of Representatives.
That could complicate passage of key Bills in July, including a controversial proposal to legalise casinos and the next fiscal year’s budget.
For now, it’s unclear if the parties can mend ties after past clashes over charter changes and cannabis laws.
Anutin said the Interior Ministry issue wasn’t discussed in his talk with the prime minister and that he was only responding to media speculation. — Bloomberg
