Flagship policies falter: Two years on, delays and shifts persist

Over the past two years, beginning with the premiership of Srettha Thavisin and now under Prime Minister Paetongtarn Shinawatra, the government has unveiled numerous economic policies and development agendas. However, many of its flagship economic initiatives—highlighted during election campaigns and parliamentary policy statements—have yet to be translated into tangible outcomes.

Several key policies remain mired in ambiguity, some have undergone revisions, and others have been delayed altogether. Political tensions within the coalition government have contributed to these holdups, reflecting the broader structural challenges of managing a multi-party administration. Among the delayed flagship policies, five are particularly notable, including the Entertainment Complex initiative.

Entertainment Complex Bill Hits Political Roadblocks

The Entertainment Complex policy, which includes the legalisation of integrated entertainment zones, recently gained Cabinet approval in draft form. Initially, the government aimed to submit the bill to Parliament for first reading before the April 2025 recess, seeking to establish a committee to study the legislation in detail.

However, ahead of its submission, the Prime Minister, following consultations with coalition partners, announced a reshuffle of the legislative agenda. Urgent matters such as earthquake relief and economic countermeasures to US tariff hikes under the Trump administration were prioritised instead.

The postponement came amid speculation that certain coalition parties might abstain from voting on the bill. Reports also emerged that former Prime Minister Thaksin Shinawatra had allegedly warned coalition members they risked expulsion from the government if they failed to support the bill.

Meanwhile, members of the Senate's "blue camp" held a press conference urging the government to hold a national referendum on the Entertainment Complex legislation, as required under the Referendum Act. They warned that bypassing a public vote could violate the Criminal Code (Sections 157 and 172) and provisions of the Organic Act on Anti-Corruption (Section 123/1), particularly if there is evidence of dereliction of duty or favouritism.

Citing both legal and ethical concerns, the government has opted not to proceed with the bill in its current form. Prime Minister Paetongtarn has instead ordered public outreach efforts to better communicate the broader economic benefits of the Entertainment Complex proposal, emphasising that the initiative extends beyond the contentious issue of casinos.

Pheu Thai and Bhumjaithai Jockey for Credit on Landmark Land Bridge Project

Thailand’s largest infrastructure initiative under the current government—the Southern Economic Corridor (SEC) or “Land Bridge” project—has become a political battleground, with both the ruling Pheu Thai Party and coalition partner Bhumjaithai Party claiming credit for championing the 1-trillion-baht mega project linking the Gulf of Thailand and the Andaman Sea.

The project, designed to boost regional logistics and transform southern Thailand into a global shipping and investment hub, has attracted international interest, particularly from the Middle East, China, and Europe. However, promotional efforts have noticeably slowed since the departure of former Prime Minister Srettha, who had previously spearheaded high-profile international roadshows.

While no coalition party has officially opposed the project, Bhumjaithai has long touted the Land Bridge as part of its platform, even before the current administration, and included it in its 2023 election manifesto submitted to the Election Commission. As the next election approaches, both Pheu Thai and Bhumjaithai are expected to spotlight the project in campaigns targeting southern constituencies.

Deputy Transport Minister Manaporn Charoensri confirmed that the draft Southern Economic Corridor Act (SEC Bill) is currently undergoing public consultation and is expected to be submitted to Cabinet by the end of May. The bill will then be tabled in the upcoming parliamentary session opening on 3 July. The request for proposals (RFP) to invite private investment is slated for December 2025. It remains to be seen whether Phase 1 of the construction will begin within this government's term.

Pheu Thai’s Digital Wallet Falls Short of Promise

Another major pledge from Pheu Thai—the 10,000-baht digital wallet scheme aimed at triggering an “economic whirlwind”—has seen significant scaling back. Originally set at 450 billion baht, the project has been reduced in scope due to delays in system readiness, forcing the government to issue direct cash payments in the first and second phases.

Key economic institutions, including the National Economic and Social Development Council (NESDC) and the Bank of Thailand (BOT), have voiced concerns over the scheme’s impact on fiscal stability. Coalition partners, while not openly opposing the plan, have also refrained from endorsing it, fearing Pheu Thai may gain an unfair political advantage by promoting the scheme during future election campaigns.

In the latest development, the government plans to reallocate the remaining 157 billion baht budget to alternative programs more suited to the current global economic climate, particularly in light of rising risks posed by tariff policies under US President Donald Trump. The National Economic Stimulus Policy Committee, chaired by the Prime Minister, is scheduled to meet on 19 May 2025 to finalise the reallocation, effectively marking the official end of the digital wallet program.

Bhumjaithai Opposes Contract Changes for CP High-Speed Rail Project

The high-speed rail linking Don Mueang, Suvarnabhumi, and U-Tapao airports—deemed the backbone of the Eastern Economic Corridor (EEC)—is a major public-private partnership worth over 224 billion baht between the State Railway of Thailand (SRT) and Asia Era One Co., Ltd. (a CP Group affiliate). The contract was signed in 2019 under the Prayut Chan-o-cha government, yet construction has yet to begin over five years later.

A proposed amendment to the original joint venture contract—approved by the EEC Policy Committee and the SRT board—is now awaiting Cabinet consideration. The key change involves a shift in the state’s investment payment terms: instead of paying 149.65 billion baht in equal instalments over 10 years once operations begin, the government would pay in tranches based on construction progress, capped at 120 billion baht.

Under the new terms, Asia Era One would be required to provide additional guarantees totalling 152.16 billion baht to ensure construction is completed and the railwayis  operational within five years. Ownership of infrastructure would gradually transfer to the SRT as payments are made.

However, this “pay-as-you-build” approach has drawn strong objections from the Bhumjaithai Party. Coalition insiders warn that the revised structure could pose legal risks and set a precedent for other public-private contracts to be renegotiated. Cabinet delays could prolong project setbacks, with concerns that ministers overseeing such changes may also bear legal accountability.

Minimum Wage Policy Falls Short of Pheu Thai’s 600-Baht Pledge

The minimum wage increase to 600 baht per day was a headline campaign promise from the Pheu Thai Party, aimed at boosting incomes nationwide. The party initially conditioned the increase on sustained 5% annual economic growth. However, after taking office, the government appeared to walk back the pledge, citing economic constraints.

During the premiership of Srettha Thavisin, the government instead announced a more modest wage hike to 400 baht per day—but only in a limited rollout covering four provinces and one district: Phuket, Chachoengsao, Chonburi, Rayong, and Koh Samui in Surat Thani. A nationwide implementation date has yet to be confirmed.

Prime Minister Paetongtarn avoided addressing the issue directly when questioned on Labour Day (1 May), adding to public uncertainty. Labour Minister Pipat Ratchakitprakarn of Bhumjaithai admitted the process had suffered repeated delays due to diverging views within the tripartite wage committee, which includes representatives from employers, employees, and the state. He added that a clearer position may be available by the end of May.

The minimum wage issue exemplifies a deeper tension in policy execution between coalition partners. Though the policy originated from Pheu Thai, it falls under the Labour Ministry, which is overseen by Bhumjaithai. The question now is whether the two parties can effectively coordinate to fulfill the promise—or whether it will remain yet another stalled campaign pledge.