Thai PM Anutin pledges to tackle economic fallout from Middle East conflict


Thailand's Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, Prime Minister Anutin Charnvirakul, and Deputy Prime Minister and Minister of Higher Education, Science, Research and Innovation Yodchanan Wongsawat react following a group photo session ahead of a royal oath-taking ceremony for the new cabinet at the Government House in Bangkok, Thailand, on Monday, April 6, 2026. -- Photo: REUTERS/Athit Perawongmetha

BANGKOK (Bloomberg): Thailand’s new government will prioritise responses to economic challenges posed by the Iran war to help millions of people cope with rising living costs, according to a draft policy statement.

Prime Minister Anutin Charnvirakul, whose conservative Bhumjaithai Party scored a decisive win in the Feb. 8 election, will also ramp up public disbursements and accelerate plans for next fiscal year’s budget when it takes full power later this week. 

Anutin begins his second term under mounting pressure to help net oil importer Thailand navigate the impact of the conflict in the Middle East. The 59-year old is set to deliver his policies to parliament on Thursday, a key step before his new administration can officially take control. 

The premier’s administration has already come under heavy criticism over fuel shortages, price spikes and supply-chain challenges. The ripple-on effects of the war have prompted some economists to trim Thailand’s growth outlook considering the Southeast Asian nation counts exports and tourism as two vital drivers of economic expansion.

Acknowledging the volatility of fuel and energy prices amid global uncertainty, Anutin in his draft policy statement, released late Sunday, vowed to speed relief measures for vulnerable groups. His government will also discuss import and export strategy measures with Thai business associations to alleviate the impact of the war on companies.

Thailand will seek to "turn the global crisis into an economic opportunity” by encouraging foreign firms to establish regional offices in the nation and reinforcing the country’s role as a "global food security hub,” according to the draft.  

Anutin also pledged that his government - Thailand’s fourth in three years - will deliver its policies with financial discipline and expedite the 2027 fiscal year budget to ensure its implementation within the normal fiscal calendar that starts in October. Expenditure plans for some government agencies that are deemed unnecessary will meanwhile be axed.

Anutin’s move to retain his core economic ministers, including Finance Minister Ekniti Nitithanprapas, Commerce Minister Suphajee Suthumpun and Foreign Minister Sihasak Phuangketkeow, has signaled policy continuity and calmed investor anxiety after years of political turmoil in the country eroded confidence.

On Monday evening, Anutin and 34 other cabinet members are due to take the oath of allegiance before King Maha Vajiralongkorn in a traditional ceremony at the royal palace in Bangkok.

Anutin, who now leads a 16-party coalition backed by around 292 lawmakers in the 500-member House of Representatives, also plans to hold a special cabinet meeting on Monday night aimed at approving the draft policy statement. 

The 19-page draft additionally covers economic risks from rising household debt and declining productivity, as well as social threats from an aging society, low birth rates and drugs.

Promoting investment in small and medium businesses, restructuring the economy to keep pace with the digital age and putting more emphasis on "high value” tourists are also touched upon.

-- ©2026 Bloomberg L.P.

 

 

 

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