Thailand's political dynamics and their impact on the Eastern Economic Corridor (EEC) development

ANALYSIS

Pheu Thai’s continued control of the government

After the removal of former Prime Minister Srettha Thavisin due to an ethics violation, concerns arose about internal fractures within the Pheu Thai Party-led coalition, which includes conservative militarist parties. However, the recent appointment of Pheu Thai’s leader, Paetongtarn Shinawatra, as Prime Minister has alleviated these concerns, signaling the continuation of the coalition’s populist policies focused on economic support for lower-income groups, rural development, and infrastructure growth.

Vital infrastructure projects, such as the Eastern Economic Corridor, will continue

The EEC, a major initiative to develop the Eastern Seaboard region, was originally launched by the junta government of Prime Minister Prayut Chan-o-cha. In the 2023 general election, Pheu Thai proposed an alternative, the "Thailand 2030" policy, aimed at promoting balanced regional development across the country rather than concentrating investment in the eastern provinces. However, the EEC remains a priority, as it is supported by the majority of Pheu Thai’s coalition members.

The EEC’s core components will greatly benefit businesses:

• Enhanced land connectivity: Improved links between Bangkok and the Eastern Seaboard provinces (Chachoengsao, Chonburi, and Rayong).
• Expansion of U-Tapao Airport: This expansion will complement Suvarnabhumi Airport in Bangkok, increasing overall air traffic capacity.
• Upgrades to Laem Chabang Port: These upgrades will enhance the efficiency of maritime logistics and trade by complementing Bangkok Port.

Outlook for the EEC following the 2027 election

The 2027 political landscape will change, as the Senate will no longer participate in selecting the prime minister. This shift makes it unlikely that conservative militarist elements will be able to obstruct the People’s Party’s prime ministerial candidate if they win a majority in the 2027 election. The People’s Party has taken a cautious stance on the EEC. While not opposed to it, they have expressed concerns about its implementation. Under their leadership, the EEC is likely to see a move toward more inclusive and sustainable development. The People’s Party is expected to advocate for stricter environmental regulations, greater transparency, and increased community participation in decision-making. They may also aim to distribute the EEC’s benefits more evenly across regions, ensuring that economic growth supports broader national development rather than concentrating primarily in the eastern provinces.