Pichai Chunhavajira, a former energy executive in Thailand, was appointed as the nation’s finance minister on Sunday ( Apr 28 ), facing a difficult task of revitalizing Southeast Asia’s second-largest economy.
Pichai, 75, an assistant to Prime Minister Srettha Thavisin, takes over from Srettha as funding secretary and becomes deputy prime minister, the official Royal Gazette said, announcing his nomination by the king.
Since 2012, Pichai has presided over the table of Bangchak Corp. He served on the central banks table from 2014 to 2017 and served on the stock exchange of Thailand’s board for less than three weeks this year.
Lagging its local contemporaries, the Thai economy faces great household debt and saving costs, as well as China’s downturn.
Unexpectedly, growth last year slowed from 2.5 per cent in 2022 to 1.9 % in the final quarter of the year, while growth last year slowed by 1.5 per cent from the third quarter. The state preparing company in February cut its 2024 growth estimates to between 2.2 per cent and 3.2 per cent from a previous 2.7 per share- 3.7 per cent forecast.
Pichai will oversee policies including Srettha’s flagship 500 billion baht ( US$ 14 billion ) handout scheme, which would transfer 10, 000 baht ( US$ 270 ) to each of 50 million Thais to spend in their communities.
Due to a lack of funding and fears about the impact on public debt, the questionable signal has been postponed until later 2024. Economic experts and some former central banks rulers have criticized it as financially irresponsible.
The state, rejecting that censure, is forging ahead with the system, although the main banks recommends it become targeted merely towards vulnerable groups.
Srettha, a real estate mogul and political stranger, has been finance secretary since taking office last year.
He has been at odds with the Bank of Thailand regarding how monetary policy should be applied, repeatedly requesting that it cut interest rates to support an economy he describes as” critical” in its current state.
For a second consecutive meeting in April, the central banks has resisted that stress by keeping its key interest rate at 2.5 per share, which is its highest level in more than a decade. Jun 12 marks the start of the charge review.
According to experts, Pichai’s political and economic acumen and rank may aid in central bank policy coordination.
Pichai is a graduate of Indiana University of Pennsylvania with a master’s degree in business administration, and he previously served as director of PTT Exploration and Production from 2001 to 2013.