Thaksin Will Reshuffle Cabinet 'soon'

[george]

Thaksin Will Reshuffle Cabinet `as Soon as Possible' (Update1)

BANGKOK: -- Thailand's Prime Minister Thaksin Shinawatra will reshuffle his cabinet ``as soon as possible,'' and he has approached people outside of politics to take positions in the government, he said.

``I have been in talks with many people outside the party to be ministers,'' Thaksin said today in his weekly radio address. ``I have difficulty in convincing them to enter politics because of the bad reputation and image of the political circle. I want to complete the cabinet reshuffle as soon as possible, but convincing outsiders into politics is quite difficult.''

Thaksin said last month he may reshuffle the cabinet, amid a series of scandals involving members of his Thai Rak Thai party that has lessened its popularity as economic growth slows amid higher oil prices and drought. The party won 75 percent of 500 parliamentary seats in February.

Transport Minister Suriya Jungrungreangkit defeated a censure vote on June 29 over his department's handling of a security-scanning equipment order for Bangkok's new international airport. Deputy Commerce Minister Suriya Lapvisutisin resigned on July 6 after four months in the position, saying he didn't want to embarrass the government after his family's business was implicated in a fraud case.

``Although the present cabinet is only five months old, the cabinet reshuffle is expected to be extensive and broad-based,'' Supavud Saicheua, head of research at Phatra Securities Pcl, said in a note to investors dated July 4. ``Changes could possibly encompass ministries of commerce, finance, interior, information and communication technology, and foreign affairs.''

Economic Measures

Thaksin said he will announce a series of short-term measures to tackle Thailand's energy use and help spur economic growth in a televised address on July 12.

Thailand's economic growth forecasts have been cut to as low as 4.5 percent for 2005, from as high as 6.5 percent earlier, as oil costs pushed the trade deficit to a nine-year high. The baht has fallen 7.6 percent against the U.S. dollar this year, making oil even more expensive in a country that imports almost all of its crude.

``We are facing a very tough time. The record crude oil price pushed up domestic fuel prices and has been a main cause of the trade and current account deficits,'' Thaksin said today. ``I'm confident that the new measures will help maintain economic growth and address economic problems in the short term.''

Thai diesel prices have risen more than 19 percent since June 1, when the government scrapped retail price caps and wound back subsidies, which will be phased out soon. Prices will rise a further 15 percent over the next few months as the country moves toward market rates, PTT Pcl, Thailand's biggest energy company, said on July 7.

Thai unions on July 7 said they may strike unless the minimum wage is raised to compensate for surging domestic fuel and transport costs that have left workers with less money to spend on food.

--Bloomberg 2005-07-09

[Totster]

I though he wasn't going to talk about politics until mercury had done something...

totster

[britmaveric]

Reshuffle again? - think he does this more than a card dealer.

[Pattaya_Fox]

Reshuffle again?  - think he does this more than a card dealer.

<{POST_SNAPBACK}>

.....but he still remains the Joker in the pack.

[stumonster]

Thai diesel prices have risen more than 19 percent since June 1, when the government scrapped retail price caps and wound back subsidies, which will be phased out soon. Prices will rise a further 15 percent over the next few months as the country moves toward market rates, PTT Pcl, Thailand's biggest energy company, said on July 7.

a 35% increase in the basic price of fuel ( with the added overhead of large loans to finance the subsidy ) ... and this rapid price increase was not phased in over a larger length of time because the Thai love Thai party had an election to win in late january? maybe I am being too cynical

And with this large reshuffle , all the encumbent ministers will be transferred to inactive posts or is that just the "public "service ?

[Pattaya_Fox]

Thai diesel prices have risen more than 19 percent since June 1, when the government scrapped retail price caps and wound back subsidies, which will be phased out soon. Prices will rise a further 15 percent over the next few months as the country moves toward market rates, PTT Pcl, Thailand's biggest energy company, said on July 7.

a 35% increase in the basic price of fuel ( with the added overhead of large loans to finance the subsidy ) ... and this rapid price increase was not phased in over a larger length of time because the Thai love Thai party had an election to win in late january? maybe I am being too cynical

And with this large reshuffle , all the encumbent ministers will be transferred to inactive posts or is that just the "public "service ?

<{POST_SNAPBACK}>

Exactly...if the Thaksin government had have used tighter economic controls from the date when they were first elected then there would not be the worry now about the effects of oil prices and the slow down in economic growth.

What we are now seeing is a tightening of policies which will have a much harder impact on the Thai people because political security was the aim of Mr T.

This impact could in effect slow the economy down even more.

Lets just hope that there are no hidden major problems like 1997 when the Bank of Thailand `propped` up so many failing financial institutions.