Thailand's ailing economy is the focus of new Prime Minister Paetongtarn's first speech to parliament

BANGKOK — Thailand's new Prime Minister Paetongtarn Shinawatra vowed in her inaugural speech to parliament on Thursday to continue many of her predecessor's plans to solve the country's economic problems.

Paetongtarn, the leader of the ruling Pheu Thai party and daughter of former Prime Minister Thaksin Shinawatra, took office last month after a court ousted Srettha Thavisin on charges of violating an ethics law by appointing a Cabinet member who had served a prison sentence in connection with a bribery case.

The Pheu Thai Party formed a government led by Srettha after members of the conservative Senate refused to support the prime minister nominated by the progressive Move Forward Party, which won the most seats in last year's general election.

Thailand is facing numerous economic challenges and Paetongtarn said on Thursday her government would urgently address the problems of high household debt, rising living costs and declining incomes “to restore hope to Thai people as soon as possible”.

The government's more immediate plans include measures to ease household burdens, reduce rising electricity, gasoline and transportation costs, as well as promote tourism and introduce new technologies in agriculture, she said.

Paetongtarn said the government would generate new revenue by legalizing and taxing the “informal economy” and the “underground economy.” Although she did not give details, it was an apparent reference to plans to legalize casinos, which are promoted as “entertainment complexes” that can bring in unexpected revenue.

The draft law, sponsored by the Ministry of Finance, states that a casino can operate in a complex that also includes other businesses such as a hotel, convention hall, shopping mall or theme park. Access to casinos will be restricted to those under 20 years old. They will be open to foreigners, while Thai citizens will have to pay 5,000 baht ($148) to enter, according to the draft.

She said the government would protect small businesses from unfair competition from foreign suppliers, especially on online platforms. Industry associations in Thailand have increasingly expressed concern about the influx of cheap products from China, which has hurt the sales of domestic manufacturers.

Paetongtarn said she would implement Srettha's 10,000 baht ($296) digital cash program, but few details were provided in her speech. Her government officials have said the “digital wallet” program, originally promised during last year's election campaign to give cash to all Thais aged 16 and above, will now prioritize vulnerable low-income groups. They will be paid a lump sum later this month or in October, while others who are eligible could be paid in instalments starting later this year.

Unlike Srettha, who has promised to make cannabis illegal again, Paetongtarn said her government would support medical cannabis as a way to stimulate the economy, with regulations added to mitigate social impacts. Cannabis was decriminalized in Thailand in 2022 and is for medical use only, but in practice the market is virtually unregulated and there has been a proliferation of retail stores targeting recreational users.

Fears of drug abuse, especially among young people, and health concerns sparked a public backlash, and during last year's election campaign, Paetongtarn's Pheu Thai Party and other parties promised to reinstate measures to ban the drug. But in July, the government suddenly signaled it was backing away from that promise.

Paetongtarn said her government would also, in the longer term, address climate change, improve the quality of education and the general health system, and combat political instability by drafting a more democratic constitution and reforming the bureaucratic system and the military.

The results of last year's elections in Thailand showed that there is a strong will for change after nearly a decade under military control. Reforms in the military – a powerful political actor that has carried out two coups since 2006 – were part of Pheu Thai's election manifesto, although it significantly watered down that promise after seizing power and forming a government with pro-military parties.

Paetongtarn's rise to power, which made her the country's youngest head of government and the second female prime minister, represents the revival of the embattled political dynasty that began with her father Thaksin, a billionaire telecommunications magnate who was elected prime minister in 2001 but ousted in a military coup in 2006.

She is the third member of the Shinawatra clan to take over the post of prime minister. Thaksin's sister, Yingluck Shinawatra, was Thailand's first female prime minister from 2011 to 2014. A father-in-law, Somchai Wongsawat, also briefly served as prime minister in 2008.

Thaksin remains an influential political figure and is seen as the de facto leader of Pheu Thai. His apparent dominance over the party has sparked controversy, including a petition to the Election Commission accusing Pheu Thai of allowing an outsider to take control of it, which could lead to the party's dissolution.

After Thaksin's overthrow in 2006, the military joined forces with other conservative forces in Thai society to prevent a comeback of his political machine. Thaksin's overthrow sparked years of fighting between his supporters and his opponents on the streets, in the courts and at the ballot box.