The administration headed by Paetongtarn Shinawatra is poised to finish its initial year in power this September.
Thailand's youngest female prime minister, who received approval from the House of Representatives on August 16 last year, was removed by the Constitutional Court following a tenure of less than a year.
Amid continuous political instability, some of the Pheu Thai Party's key economic initiatives have faced criticism for not restoring the economy as efficiently as they had pledged.
The initiative for the digital wallet, intended to provide financial assistance to specific groups, and the local travel subsidy, meant to boost domestic tourism, both faced issues during their execution.
LACK OF MAJOR INVESTMENTS
Therdsak Thaveeteeratham, executive vice-president of Asia Plus Securities, mentioned that various campaign promises were met by the government, particularly the distribution of cash to citizens and the cabinet's recent approval of the 20-baht flat fare policy for Bangkok's electric train system.
"The financial assistance initiative alleviated the pressure of living expenses during the economic downturn, despite the fact that evident signs of recovery are still scarce," stated Mr. Therdsak.
Although the fixed fare system has not been put into place yet, he mentioned that the cabinet's approval indicates a desire to lower household costs. The administration also continued with tourism incentive programs initiated by the previous government.
Nevertheless, major infrastructure projects like the Land Bridge initiative and proposals for an entertainment complex have been put on hold.
This absence of significant public funding represents a shift from the policies of the Gen Prayut Chan-o-cha administration, which advanced extensive infrastructure projects, including several mass transit systems.
Mr. Therdsak mentioned that the brief period of the current administration complicates assessing its achievements regarding long-term initiatives, which usually demand prolonged planning and consistent financial backing.
Furthermore, he mentioned that political instability remains a burden on investor sentiment and might postpone the approval of the 2026 national budget, which could slow down the implementation of significant infrastructure projects. These elements have the potential to limit economic growth and weaken short-term investment confidence.
NO TANGIBLE OUTCOME
Kiatanantha Lounkaew, an economics professor at Thammasat University, stated that the key measures of the government's advancement are economic growth, job creation, and a decrease in inequality. Nevertheless, none of these three metrics present a clear or encouraging outlook.
"The effects are still not visible. Despite the government's assertion that numerous policies have been put into place, none have led to measurable results," he stated.
Professor Kiatanantha stated that the government's inability to properly carry out its policies is due to three reasons: financial limitations, effects of geopolitical issues, and the tariff policies of former US President Donald Trump, as well as a shifting environment where government instruments are not strong enough to stimulate the economy as intended.
He stated, 'The government is proceeding with care, particularly as the upcoming general election is less than a year away.'
If the government allocates funds to boost the economy but fails to achieve tangible outcomes in the short term, I think it will be challenging for Pheu Thai to regain power.
Recent surveys indicate increasing public worry regarding joblessness, sluggish economic expansion, and inadequate focus on disadvantaged communities and income disparity.
These concerns suggest that the Thai economy is vulnerable when it comes to handling external pressures, implying that the government's effectiveness has been lacking, according to Prof Kiatanantha.
"Throughout the rest of the government's tenure, future actions should concentrate on helping business owners stay competitive, instead of depending on financial aid," he stated.
An alternative method could involve a co-financing model, akin to the program implemented during the pandemic, which aids in lowering expenses for companies and enables them to keep their staff, noted Prof Kiatanantha, who mentioned that this approach would be more efficient than giving money directly to individuals.
Finally, he suggested emphasizing the enhancement and renewal of employees' skills to enable them to keep pace with the intensely competitive worldwide landscape.
COMPLETE FAILURE
Aat Pisanwanich, an independent economist, stated that the government has not achieved any outcomes, suggesting it can be considered a total failure.
Pheu Thai promised during the election that its digital distribution would guarantee "sustenance, respect, and honor," but this has not happened, he stated.
In the meantime, Mr. Aat stated that the campaign promise to increase the daily minimum wage to 600 baht has not been fulfilled, and the efforts to promote soft power have not yielded measurable outcomes.
A portion of the issue arises from having a prime minister who is ineffective in every area, whether it comes to economics or global relations, thereby putting Thailand at risk economically and politically, he mentioned.
The government observes that the Thai economy has expanded by 3% over multiple consecutive quarters, yet Mr. Aat contended that growth needs to be evaluated based on who truly gains from it.
"We should not focus solely on the figures. As the economy expands, we need to consider who gains from this growth? In most instances, it's major corporations," he stated.
More importantly, we should question if farmers are reaping the benefits. At present, prices for agricultural products are declining universally.
Mr. Aat also criticized the government's major investment initiatives, such as the Land Bridge project, a campaign pledge that is still pending, while the government's highly promoted entertainment complex plan, which aims to legalize casinos, is caught in political disputes.
"The administration has not succeeded. Over the last two years, Thailand has achieved nothing," he stated.
Nonarit Bisonyabut, a researcher at the Thailand Development Research Institute, stated that in the past two years, the government implemented its cash distribution program, yet the true difficulty lies in structural problems hindering the Thai economy's growth, which directly impacts individuals' earnings.
"The nation's ability to generate income has decreased, indicating that we must urgently reform the economy to develop job opportunities for citizens," he stated.
Nevertheless, the government has only focused on dispersing funds.
The economy is still weak, with businesses, shopkeepers, street vendors, and small and medium-sized enterprises (SMEs) stating they struggle to make ends meet, according to Mr. Nonarit.
He mentioned that as Thailand's economic potential declines, the nation might face the impact of Trump's retaliatory tariff policies, which could hinder the export industry, a major driver of the Thai economy.
The second key component of the economy is tourism, but it is showing stagnant numbers compared to last year due to a sharp decline in Chinese visitors.
"The sole government initiative that has produced measurable outcomes is distributing funds," stated Mr. Nonarit.
Regarding the future, it appears the government's only preparation is additional financial aid. However, this aid is akin to applying a bandage to an injury. It does not address underlying issues or assist individuals or small businesses in increasing their earnings.
Up until now, we have not witnessed any viable or motivating policy proposals, and the government's assertion that the cash transfers will circulate in the economy 4-5 times is contradicted by the evidence. In fact, the money isn't even circulating even once.
POLITICAL INSTABILITY
The political instability caused by a leaked audio recording about the Thai-Cambodian border dispute hindered the Pheu Thai coalition government's attempts to tackle economic issues, according to Kriengkrai Thiennukul, head of the Federation of Thai Industries.
He stated that political conflicts may hinder the state's attempts to rejuvenate the sluggish economy led by the premier.
"Since the video was made public in June, the government has grown weak and is facing numerous dangers," said Mr. Kriengkrai.
This is an awkward moment for a government facing various economic challenges, including high levels of household debt and the effects of Washington's strict tariff policy.
The government has urged foreign investors to grow their operations here, as part of initiatives aimed at boosting the GDP, he mentioned. However, numerous business owners remain uncertain about investing in a nation affected by political instability, stated Mr. Kriengkrai.
Foreign investors might delay new projects if they experience doubt, noted Kasemsan Sujiwarodom, the chief executive of Kijcharoen Engineering Electric, a Thai company that produces electrical control cabinets and is listed on the MAI.
Without the Bhumjaithai Party, the second-largest faction within the government, the count of government MPs is comparable to those in the opposition group, which could impede the state's ability to carry out its policies.
"Thai politics must become more stable to boost foreign investor confidence," stated Mr. Kriengkrai.
TEPID, INEFFICIENT TOURISM
Thienprasit Chaiyapatranun, head of the Thai Hotels Association, stated that this administration's efforts have been unsuccessful due to the absence of robust strategies to guide the economy during the crisis.
In reality, he mentioned that advancements in tackling current issues have been extremely gradual, especially concerning the nation's unfavorable safety reputation, which has continued to be unaddressed for many years.
Consequently, numerous markets have suffered significantly, and this year the government is expected to fall short of both its revenue and tourist arrival goals, stated Mr. Thienprasit.
"Given the stagnant economy, the government needs to take further action. The challenges attributed to external causes, like the Trump tariffs or foreign rivals capturing tourism market share, are all matters the government is accountable for addressing," he stated.
These elements do not serve as justifications for its failure to advance.
Another obvious sign is the slow response to border clashes, which might intensify and lead to a loss of trust among foreign visitors during the peak season, according to Mr. Thienprasit.
The authorities ought to have intervened in this conflict with Cambodia long before, but rather than resolving it, it worsened, resulting in deaths on both sides, he stated.
"There is definitely a risk that border disputes could affect tourism. Even if they are confined to a small region, travelers usually do not differentiate between locations," stated Mr. Thienprasit.
For example, when the Russia-Ukraine conflict started, few people were interested in visiting either nation because of insufficient clarity. The government needs to quickly provide reliable details regarding the situation.
Many tourism support initiatives were introduced by the private sector, including the "Half-Half" program, which hotel chains had been promoting since the Srettha Thavisin government.
Nevertheless, once the plan was put into action, it encountered many issues, leading both customers and hotels to withdraw from joining.
MORE TO BE DONE
Pathom Indarodom, head of the Digital Council of Thailand (DCT), stated that the government's achievements have surpassed expectations due to the effective initiatives undertaken by government agencies to advance the digital business sector.
Their work led to favorable progress and enhanced Thailand's position in the digital government index.
Thailand placed 52nd among 193 nations in the UN's 2024 E-Government Development Index, securing the second position in Southeast Asia after Singapore. The country aims to reach the top 40 by 2027, he mentioned.
The government has collaborated with the DCT to establish Thailand as the digital center of the region, offering assistance to startups, smart cities, smart schools, and innovation clusters across the country.
The government also created the National Artificial Intelligence (AI) Strategy Committee, including members from government departments, the DCT, and the private sector.
Nevertheless, several challenges remain, including differences in digital skills, with only 1% of Thais having advanced information and communications technology skills, compared to 16% in Malaysia, according to Mr. Pathom.
Furthermore, foreign investment in digital technology in Thailand constitutes merely 2% of the overall investment in Southeast Asia.
"Persistent structural issues continue to go unaddressed, indicating a shortage of long-term planning and consistent policies," he stated.
Mr. Pathom stated that Thailand continues to face a shortage of highly qualified professionals in areas such as AI, cybersecurity, and data science, which hinders its ability to rival Singapore and South Korea.
The educational framework in Thailand fails to align with the requirements of a digital-era workforce, he stated.
Mr. Pathom mentioned that government agencies and major organizations have faced multiple cyber-attacks and data leaks, pointing out weaknesses in cybersecurity measures and emergency response systems.
Furthermore, Thailand's funding for digital research and development is still less than that of regional counterparts like Singapore and Malaysia, which prioritize AI and advanced technology research.
He mentioned that rules concerning startups and technology investments continue to be complex, which is impeding foreign investment.
Mr. Pathom stated that political instability and the absence of consistent policies have hindered the advancement of numerous digital projects.
Somchai Sittichaisrichart, the managing director of SiS Distribution, mentioned that the government is still missing a solid foundation for AI investment, which would help businesses and individuals utilize and prepare for artificial intelligence.
RESTAURANTS LACK SUPPORT
Chanon Koetcharoen, head of the Restaurant Association, stated that the government has not offered sufficient assistance to the sector.
He mentioned that the government appears to be excessively concentrated on boosting the tourism industry, which he thinks ultimately supports restaurants.
Nevertheless, Mr Chanon pointed out that there is a lack of comprehensive economic stimulus initiatives aimed at boosting consumer expenditure.
For the latter part of the year, he mentioned that he hopes the government will implement economic stimulus initiatives, including reinstating the "Khon La Khrueng" co-payment support program, limited to 150 baht per day, which could greatly boost the restaurant sector.
Thaniwan Kulmongkol, head of the Thai Restaurant Association, stated that the government is not involving restaurant owners in decision-making, as individuals from the industry have not been asked to contribute their views on related policies.
She claimed that Pheu Thai's pledge to increase the daily minimum wage to 600 baht by 2027 is driven by political intentions.
Although it is still just a suggestion, the expectation of a salary hike has already led to an increase in product prices, stated Ms. Thaniwan.
Provided by SyndiGate Media Inc.Syndigate.info).