Ex-energy executive Pichai named finance minister amid growth challenge

Pichai Chunhavajira, a former electricity executive, was appointed finance minister on Sunday, with a challenging task ahead of him.

Mr Pichai, 75, an assistant to Prime Minister Srettha Thavisin, takes over from Mr Srettha as finance secretary and becomes deputy prime minister, the official Royal Gazette said, announcing his nomination by His Majesty.

Mr. Pichai has been the committee head of Bangchak Corp. since 2012. He served on the central banks panel 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 % in 2022 to 1.9 % in the final quarter of that year. The state planning agency in February cut its 2024 growth forecast to between 2.2 % and 3.2 % from a previous 2.7 %- 3.7 % projection.

Mr Pichai may handle policies including Srettha’s lineup 500 billion ringgit handout plan, which would transport 10, 000 ringgit to each of 50 million Thais to invest in their communities.

Due to a lack of funding and fears about the impact on public debt, the questionable signal has been delayed 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.

Mr Srettha, a real estate mogul and political stranger, has been funding chancellor since taking office last year.

He has consistently argued with the Bank of Thailand about how to move monetary policy, and he has repeatedly urged it to lower rates to support an economy he sees as” important.”

For a second consecutive meeting in April, the central bank has resisted that stress, leaving its important interest rate at 2.5 %, the highest level in more than a decade. The second level evaluation will take place on June 12.

Analysts predicted that Mr. Pichai’s rank and political and economic acumen would aid in central bank policy coordination.

Mr. Pichai worked as chairman at PTT Exploration and Production from 2001 to 2013, and he holds a master’s degree in business administration from Indiana University of Pennsylvania.