Chairman Pichai Chunhavajira of the Stock Exchange of Thailand has resigned, potentially opening the path for his appointment as the finance minister in a cabinet reshuffle. Mr. Pichai, aged 76, has also stepped down from his roles as chairman of Bangchak Corp and BCPG Plc – effective from April 25, according to separate filings to the SET on Thursday.
He is likely the top contender for the finance minister position as it is reported that Prime Minister Srettha Thavisin wishes to step down from the post. Mr. Srettha appointed Mr. Pichai as one of his advisors upon assuming the premiership last year.
The premier mentioned earlier this week that the reshuffle would occur at an “appropriate timing.” Reports surfaced of Mr. Srettha and Deputy PM Phumtham Wechayachai seen arriving at the Rosewood Hotel for lunch with former prime minister Thaksin Shinawatra, believed to discuss the cabinet reshuffle.
With a master’s degree in business administration from Indiana University of Pennsylvania, Mr. Pichai brings a wealth of experience, having been a member of the Bank of Thailand board from 2014 to 2017 and a director at PTT Exploration and Production from 2001 to 2013.
The potential appointment of Mr. Pichai, a seasoned capital markets expert, as finance minister could help alleviate tensions between the government and the Bank of Thailand, with whom Mr. Srettha has differing views on strategies to revive Southeast Asia’s second-largest economy.
Despite Mr. Srettha’s calls for the central bank to lower its policy interest rate to stimulate growth amidst negative inflation, the bank maintained the rate at 2.50% on April 10. This prompted the premier to engage with top bank executives to encourage them to reduce borrowing costs, resulting in a quarter percentage point cut in loan rates for vulnerable groups and small businesses.
If appointed as finance minister, Mr. Pichai faces the challenging task of revitalizing an economy that lags behind regional counterparts, grappling with high household debt, borrowing costs, and the effects of China’s economic slowdown.
Among his responsibilities would be overseeing key government initiatives such as the 500-billion-baht digital wallet project, aiming to provide 10,000 baht to 50 million Thais to spend in their local communities later this year. However, delays in the stimulus plan have occurred due to funding constraints and concerns over public debt implications.
The economy unexpectedly contracted in the final quarter of 2023 compared to the third quarter, with last year’s growth at 1.9% – falling short of the 2.5% growth in 2022. The National Economic and Social Development Council revised its 2024 economic growth forecast to between 2.2% and 3.2% from the previous range of 2.7% to 3.7%.
