Bangkok: "Paiboon" indicates election results better than expected, with Bhumjaithai Party securing a landslide victory and supporting a swift formation of a government. Paiboon Nalintrungkur views the election results as better than expected, following the Bhumjaithai Party's landslide victory. This provides political clarity, supporting the rapid formation of a stable government. The stock market reacted positively. Attention is now focused on economic policies and the team in charge of economic ministries. He indicates that Kla Tham and Pheu Thai have a high chance of joining the government.
According to Thai News Agency, Mr. Paiboon Nalintrungkur, President of the Investment Analysts Association (IAA), assessed the election results as better than market expectations, after the Bhumjaithai Party secured first place with nearly 200 seats, significantly ahead of the second-place party. This reflects their legitimacy in forming a government. If they combine their votes with another 2-3 political parties, they will have over 300 seats, giving them a good chance to form a stable government quickly.
While the Bhumjaithai Party already enjoys support from conservative factions, this is likely to lead to smoother political cooperation. This should help mitigate the political instability risks that have pressured the Thai economy and capital markets in the past, as evidenced by the positive response from the stock market following the emergence of political clarity.
However, this election marks the first time in many years that the political party that comes out on top has been able to form a government and have a prime minister appointed. Therefore, it is seen as a positive turning point in Thai politics in the short term, at least initially, the situation is expected to be smooth.
The key issue remains the formation of the government and which parties it will form a coalition with. It's now quite clear that the Kla Tham Party will join. However, even though the two parties combined have more than half the votes, it's still a very slim majority. Therefore, it's possible they will need to bring in other political parties to increase long-term stability.
Looking ahead, the most important thing is the direction of the new government's economic policy and how effectively it can address structural problems. We still need to monitor the details of these policies for clarity. As for economic stimulus measures, we see a clear direction already in place, particularly the "Half-Price Plus" scheme, which is expected to continue in order to support purchasing power and economic activity within the country.
Regarding the allocation of ministerial positions, Mr. Paiboon assessed that the Bhumjaithai Party is likely to control key economic ministries, while the Kla Tham Party will probably retain control of the Ministry of Agriculture and Cooperatives. Other coalition parties may receive less important ministries. This would lead to greater unity in economic management and could be the first time in almost 10 years that the head of the economic team can oversee multiple ministries simultaneously.
If the Prime Minister appoints Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapha, to head the economic team and can closely integrate the work of the key economic ministries, it is believed that this will enhance the team's capabilities, ensuring sufficient coordination to bring about change and solve problems.
Regarding the possibility of the Pheu Thai Party joining the government, it is seen as highly likely, given their past collaboration and the fact that in politics there are no permanent friends or enemies. Furthermore, the Bhumjaithai Party has significant bargaining power due to its substantial lead in the polls. It is believed that if an offer is made, most political parties would choose to join the government rather than be in the opposition.