Thailand's Move Forward seek to curb Senate powers after loss in PM vote

The Move Forward party, winners of Thailand’s recent election, announced on Friday their strategy to limit the authority of the military-appointed Senate. This comes after their leader’s unsuccessful attempt to become prime minister, as members of the Senate tactically obstructed his bid.

The role of the 249-member Senate, alongside the elected lower house, was conceived by the royalist military following a coup in 2014. It is considered a constitutional safeguard to protect the interests of the generals and the conservative establishment. However, Move Forward is aiming to curb the Senate’s power, which they believe is being leveraged by the old powers and certain capitalists to prevent their party from forming a government.

Pita Limjaroenrat, the leader of Move Forward, faced defeat in the crucial premiership vote on Thursday. Despite having the support of an eight-party alliance, Pita lost as the Senate and the outgoing army-backed government united to deny him the position. Out of the 249 senators, only 13 supported the 42-year-old leader, while the remaining senators voted against him or abstained. Move Forward claims that some senators were coerced into their stance.

Chaithawat Tulathon, the party’s secretary general, expressed his concerns about external pressure on the Senate in a television interview. He proposed reducing the Senate’s authority by amending a specific article in the constitution. The process of amending this article could take up to a month.

Pita, a Harvard-educated liberal from the private sector, has garnered significant support from the younger generation for his plans to revolutionize Thai politics and bring reforms to previously untouchable sectors and institutions. One of the party’s most controversial policies focuses on the monarchy, specifically a law that prohibits insulting it. Convincing legislators to support Pita has been challenging due to this policy.

Pita remained steadfast in his determination to fight for the premiership and uphold his policies, vowing not to abandon them. He is eligible to run for the position again in the upcoming vote on July 19, confirmed by the house speaker.

Pita’s defeat on Thursday was preceded by a setback when the election commission recommended his disqualification due to a shareholding issue. Shortly after, the Constitutional Court announced it had received a complaint regarding Move Forward’s plan to amend the law against insulting the monarchy.

Anticipation of political tension had been high this week, as Thailand has faced a two-decade-long power struggle between reform-minded parties and the alliance of old money and the military establishment that seeks to suppress them.

Pro-democracy groups have called for protests, condemning the senators who abstained or voted against Pita as spineless and “toxic to the will of the people.”

The political uncertainty had a slight impact on the Thai baht, which dipped around 0.4% to 34.65 per dollar in morning trade. However, the benchmark Thai index saw a 1% increase.

Commenting on the situation, Vijay Vikram Kannan, Asia macro strategist at Societe Generale in Singapore, stated that the baht could underperform compared to other currencies due to political risk. However, he believes a major selloff is unlikely and expects the market to rally once there is a resolution to the political situation.

(Additional reporting by Juarawee Kittisilpa in Bangkok and Rae Wee and Tom Westbrook in Singapore; Writing by Martin Petty)