White mask protesters in Bangkok.
Source: Bangkok Post
Summary
In politics, the fifth cabinet lineup of the Yingluck Shinawatra government “demoted” Chalerm Yubamrung to the position of Labor Minister, while Prime Minister Yingluck took on the additional role of Defense Minister. The opposition Democrat Party has filed a petition with the Senate seeking the ouster of the Prime Minister and the leadership of the white masked movement announced a halt to its political activities in Bangkok due to internal conflicts with its allies.
In economics, the government has decided to start selling off the huge stockpile of rice accumulated under the rice pledging scheme. As the demand for rice is expected to rise in the second half of the year, 500,000 tons of rice will be offered to traders over the coming fortnight. The criticised scheme has continued to attract scandals, of which the latest involved traders smuggling cheap rice crops from Myanmar over to border to be sold at the high pledging prices. Other news include an ever increasing wealth gap in Thailand, highlighted by a recent Forbes listing of Thailand’s wealthiest persons as well as criticism of the planned 2 trillion government infrastructure loan for not complying with Thailand’s constitution.
In security, the situation in the southernmost provinces of Thailand is still tense and affected by numerous recent incidents. A current report of a committee, which was set up by the Southern Border Provinces Administration Centre (SBPAC) to investigate an insurgent attack in Pattani province, found that the level of violence in the three southernmost provinces has increased by 50 % since the beginning of the peace talk negotiations with the Barisan Revolusi Nasional (BRN). However Thai officials recently emphasized their plan to continue the peace talks with BRN but also try to involve other separatist groups. On 26 of July the deadline of Prime Minister Yingluck Shinawatra protection-promise for Rohingya runs out but the situation for the refugees of Myanmar is still tense. The UNHCR (United Nations High Commissioner for Refugees) has therefore requested Thai authorities to extend the six-month temporary shelter promise and improve the living conditions of Rohingya.
Politics
The fifth cabinet lineup of the Yingluck Shinawatra government involved 11 ministers leaving the government and 18 ministerial changes overall. Prime Minister Yingluck Shinawatra took on the additional role of Defense Minister, while former Deputy Prime Minister Chalerm Yubamrung was “demoted” to the post of labor minister. In other noteworthy changes, Commerce Minister Boonsong Teriyapirom was dropped and replaced by Niwattumrong Boonsongpaisan, a former minister in the PM’s office, due to the heavy losses of the government’s rice purchase scheme above market rates. The new Commerce Minister promised to make the rice-scheme more transparent and reduce government losses. In early post-reshuffle surveys two new ministers stuck out for receiving over 80% positive responses, Chaturon Chaisaeng and Pavena Hongsakula. Both were part of the 111 executives of the Thai Rak Thai Party which were banned from politics for 5 years and now returned to government positions. Chaturon Chaisaeng takes over as Education Minister, the fourth in the 2-year long Yingluck administration so far, while Pavena Hongsakula was appointed as Social Development and Human Security Minister.
Chalerm Yubamrung meanwhile lashed out against Pol Col Thawee Sodsong, secretary-general of the Southern Border Provinces Administrative Centre, who he identified as the reason for his transfer and spreading the rumor of him having opened and operating gambling dens. Furthermore, he blamed Thawee for the government’s inability to improve the situation in the south because he didn’t listen to the committee he had set up.
PM Yingluck’s additional role as Defense Minister on the other hand was criticized by the opposition as an attempt to increase the government’s influence in the next military reshuffle. Deputy Defense Minister Yutthasak Sasiprapa said Ms Yingluck will have a say in the military reshuffle next year but insisted that there will be no political influence on the reshuffle. National army chief Prayuth Chan-ocha also announced that he received the Prime Ministers promise that the military reshuffle will be free of political interventions. Regarding PM Yingluck’s role as Defense Minister the army chief stated his hope that this would improve the situation in the South as she would be able to make decisions and orders immediately. PM Yingluck has furthermore assigned herself to oversee the Public Relations Department which is the agency in charge of all state-run media. (Bangkok Post) (The Nation) (The Wall Street Journal) (Channel News Asia) (Bloomberg)
One day after the Central Administrative Court ordered to hold the 350 billion baht water megaproject as public hearings were necessary before the work is allowed to begin The Stop Global Warming movement asked the National Anti-Corruption Commission (NACC) to take action against Prime Minister Yingluck Shinawatra, Deputy Prime Minister Plodprasop Suraswadi and PM’s Office permanent secretary Tongthong Chandransu for even allowing the project to start. The opposition Democrat Party joined the movement and lodged a petition with the Senate seeking the ouster of Prime Minister Yingluck Shinawatra. According to their claim the water project scheme violates five pieces of legislation: the anti-graft law, the environment protection law, the anti-price collusion law, the Criminal Code and the constitution. Senate speaker Nikhom Wairatpanich received the petition and stated that the Senate would examine the petition and then forward the claim to the NACC within 15 days. Despite the court ruling the Finance Ministry signed a contract for 324.6 billion baht in loans to finance the water projects. (Bangkok Post)
The white masked movement receives more support on a weekly basis but first rifts in the overall strategy have forced the Bangkok leadership to announce a halt to their political activities in Bangkok. Rumor has it that they are upset over their allies Pitak Siam and the group led by Chaiwat Sinsuwong, especially over the latter’s petition for a royally endorsed Prime Minister. Responses to the announcement on Facebook to halt their political activities in Bangkok were mostly negative, arguing that the movement would have no leadership who could order a halt. The Pitak Siam movement responded disapprovingly on Facebook and called on all supporters to continue to come out and protest.
The United Front for Democracy against Dictatorship (UDD), commonly known as red-shirts, meanwhile announced their intent to change leadership and asked Jatuporn Prompan to take over for Tida Tawornseth. Mr. Jatuporn did not accept the proposal though citing health problems as a primary reason. The UDD leadership felt that with the critical political situation ahead in the upcoming months Mr. Jatuporn would be the right leader for the movement. (Bangkok Post) (The Nation)
Economy
The Thai Government has decided to start selling off a small portion of the huge stockpile of rice that has been accumulated during the rice pledging scheme. Since its introduction in 2011, the scheme ahs been plagued by corruption allegations and criticism concerning the massive losses incurred as rice is bought at uncompetitive prices compared to the market level. The latest in a line of concerns are reports about a strong increase in the amount of rice bought by Thai traders in Myanmar since the beginning of the year. 25 tons of rice hidden in a cargo truck were found in a Myanmar-Thailand border crossing in the past week. Over the coming fortnight, 500,000 tons of rice will be proposed to traders at prices in line with the market’s. Global demand for rice is expected to grow during the second half of the year and there is therefore some hope to avoid greater losses in the sales. Nevertheless, there have been indications that some of the stockpiled crops have already rotted or are of substandard quality and will be impossible to sell. As the pledging scheme continues, Commerce Minister Boonsong Teriyapiron had to revoke a recent decision, previously approved by the Cabinet, to lower the pledging price on rice to 12,000 baht/ton. The decision was taken in an attempt to adjust pledging prices to the market but due to large demonstrations by farmers, the Government retracted and the pledging price will remain at 15,000 baht per ton throughout the current harvest season. Government representatives have however confirmed that the price will be lowered to 13,000 per ton starting from the coming season in November. (The Nation, The Global Times, The Irrawaddy, Bangkok Post)
Forbes, a business publication, has presented a list of the wealthiest persons in Thailand in 2013. The strong progression of the SET during the past year as well as the tourism industry, that welcomed more tourists than ever in 2012 (22 million visitors), have both been factors in pushing Thai wealth forward. From this listing it is clear that the 50 wealthiest Thai nationals account for 25 % of Thailand’s GDP, or around 2.5 trillion baht. Criticism has folloed by the Thailand Development Research Institute (TDRI), that recently published a statement saying that the government should impose higher tax rates on the wealthiest. With the gap between the richest and the poorest steadily increasing, the TDRI wants to push for wealth redistribution. The wealth gap is increasing despite the hike in household savings experienced over the past years. Today a fourth of the Thai population hold no savings at all, a decrease from earlier levels at about 45 per cent, while average savings rose from 507 baht per month and household to 5,145 baht. (The Nation, Bangkok Post, forbes.com)
The chairman of the Law Reform Commission, Kanit Na Nakhon, has warned the government this week that the 2 trillion baht infrastructure loan, planned to pay for massive train line developments, violates Thailand’s constitution. Although Mr. Kanit has proposed several alternative solutions to the political leadership, it is yet unclear how, and if, the issue will be solved or if the loan will go ahead as planned. Previous criticism has included the lack of transparency in the planned project and the lack of feasibility studies compared to the size of the investment. Opponents say it is irresponsible of the current government to incur such massive state debt without certainty that the investment will pay off. Government representatives however argue that investing in infrastructure is essential to supporting Thailand’s long term development. (Bangkok Post)
Security
A committee, which was set up by the Southern Border Provinces Administration Centre (SBPAC) to investigate an insurgent attack in Pattani province on May 31, stated in a recent report that the level of violence in the three southernmost border provinces has increased by 50% since the peace talk negotiations with Barisan Revolusi Nasional (BRN). The committee found that there are three separatist groups who disagree with the peace talks trying to increase the level of violence in the three southern border provinces. The militants had changed their targeting strategies in focusing on state officials, such as soldiers and police, while attacks on civilians had dropped by about 50%. (Bangkok Post)
The BRN issued latest demands in a you-tube video by their representative Hassan Taib who called on Prime Minister Yingluck Shinawatra to accept the conditions by July 3 (before beginning of the month of Ramadan). Deputy Prime Minister Chalerm Yubamrung told reporters the BRN’s demands were unacceptable and that it is not necessary for the government to respond to each demand. (Bangkok Post/ The Nation)
However, Thai officials recently confirmed that the peace talks should continue and more separatist groups be involved. (Bangkok Post)
Meanwhile the violence in the southern provinces still continues and numerous people got injured or killed by attacks of insurgents. The security situation in the southern provinces is now attempted to be improved with Prime Minister Yingluck Shinawatra concurrently holding the post of defense minister, facing her ability of making decisions and issuing orders immediately. (Bangkok Post)
Around 2000 Rohingya, coming from Myanmar as refugees, often because of persecution, are currently staying in Thailand. They live in an uncertain status about their future in shelters around the country. Prime Minister Yingluck Shinawatra decided in January 2013 to shelter and take care for the Rohingya for six months. The deadline runs out on July 26, but the situation for the Rohingya is still affected by many problems. They often live in already overcrowded immigration detention facilities under bad living conditions and separated from their families. International aid agencies have got involved to supply food and basic essential items, but the situation of Rohingya is still tough. They constitute one of the most vulnerable risk groups for becoming victims of human trafficking and also several reports of rape cases are known. However, according to some immigration officials, at least half of the Rohingya are economic refugees hoping to get a better job in Thailand, while the other half of them are legitimately fleeing persecution. UNHCR (United Nations High Commissioner for Refugees) has lately requested Thai authorities to extend the six-month temporary shelter promise and to relocate the Rohingya in places under better living conditions. (Bangkok Post)
Anti-narcotics chief Pol Gen Pongsapat Pongcharoen recently stated out the urgent need of cutting the demand for drugs. From October 2012 to May 2013, 83 million methamphetamine pills – also known as “ya ba” – were seized by authorities, along with 265 kilograms of heroin and 1.28 tonnes of crystal meth, also known as “ice”. Some sources say that there are up to 1,2 million Thais addicted to drugs (2,9% of the population). 90% of drugs are being smuggled into Thailand from the northern border areas, while also smuggling routes in the South, entering Thailand from Malaysia and Indonesia, play an important role. To face the drug-crisis Gen Pongsapat Pongcharoen emphasizes the importance of measures to reduce the demand. This can be realized with campaigns, the spread of information about drugs and a strong collaboration with local police and communities. (The Nation)
Comments are closed