Thailand's PM Paetongtarn vows to stimulate the economy "right away"

BANGKOK (Reuters) – Thailand’s Prime Minister Paetongtarn Shinawatra said on Saturday her new government will seek to stimulate the economy “right away” and will continue with the policies of former premier Srettha Thavisin.

She held a special cabinet meeting earlier in the day to prepare policies that will be delivered at a 2-day meeting of parliament on Thursday and Friday that will mark the formal beginning of her administration.

Paetongtarn was elected prime minister by the country’s House of Representatives last month following the shock removal of Srettha by a court for ethical violations.

She said her government will mainly continue the policies of her predecessor with some adjustments. This includes tackling issues such as debt restructuring, supporting small and medium-sized enterprises as well as boosting the agricultural and tourism sectors.

“Our work will continue from Srettha’s government, particularly in stimulating the economy,” Paetongtarn said at her first press conference since her cabinet was sworn in by King Maha Vajiralongkorn a day earlier.

She did not directly address a question about potential adjustments to the government’s flagship digital wallet scheme or when it might be implemented. The scheme calls for 50 million Thais to each receive 10,000 baht ($295) via a smartphone application.

Paetongtarn said this week that part of the government’s 450 billion baht ($13.4 billion) handout plan would be distributed in cash, signalling that the wallet scheme could be adjusted but did not provide details.

The youngest daughter of the divisive former premier Thaksin Shinawatra, Paetongtarn has not served in government previously and will face difficulties on multiple fronts from the floundering economy to potential legal challenges similar to the one that led to the dismissal of Srettha.

She is the fourth family member to hold the premiership, with the other three removed by either coups or court decisions.

($1 = 33.71 baht)

(Reporting by Panu Wongcha-um and Panarat Thepgumpanat; Editing by Edwina Gibbs)