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Around 10,000 people took part in the planned demonstrations in the historic part of Bangkok on Wednesday, most of them students. They have demanded that the Prime Minister resign and that the Constitution be amended on important points, including the role of the monarchy in the country.
Fear of violence and discomfort
At 4 p.m. local time Thursday afternoon, the government, led by former coup leader Prayut Chan-o-cha, declared a state of emergency in parts of Bangkok where several of the government offices are located.
The Prime Minister justifies it with the fact that “demonstrations can provoke more violence, affect the economy and the security of the inhabitants.” A ban on gathering more than five people and restrictions on what the media can publish is introduced.
The remaining protesters left the area in the morning. Several protest leaders have been arrested, according to Thai Human Rights Lawyers. The situation is tense. Further demonstrations are planned in Bangkok’s commercial center on Thursday afternoon local time.
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A procession of cars, including the Thai queen among others, was surrounded by protesters Wednesday afternoon. The Thai king has spent a long time in Germany since he was installed after his father died in 2016.
Some protesters pointed three fingers in salute to the caravan, inspired by the movie “The Hunger Games” and symbolizing a totalitarian government. The images show that the queen and her entourage waved and smiled.
– It is unlikely that the demand to implement reforms in the monarchy will receive broad support in the population. It has created confusion and division, says Associate Professor Jade Donavanik, who was a consultant when the last Constitution was written after the military coup in 2014, from Nikkei Weekly.
Thailand has had two military coups since 2006 and there were several clashes between different political groups before the last military coup in 2014.
Empty for tourists
The Thai economy has been hit hard by the corona pandemic. Authorities gained control of local outbreaks this spring and most restrictions were lifted. The central bank expects economic activity to fall by around eight percent in 2020.
Thailand is one of the countries that depends the most on the tourism sector. Last year, almost 40 million people made the trip to Thailand. Almost a third of them came from China. The tourism sector accounts for almost a fifth of value creation. Now the borders are closed.
Only Thai citizens and permanent residents with a residence permit can enter. All must be quarantined for 14 days. A proposal to issue special visas for tourists who wish to spend the winter in the country has been postponed several times.
– Only in the second half of 2022 will economic activity return to the same level as before the corona pandemic. There is still great uncertainty. The answer lies in when it can be opened to tourists, says director Don Nakornthab at the Bangkok Post’s central bank.
– Not ideal
The Thai currency has remained strong due to $ 277 billion in foreign exchange reserves, low public debt and large overseas current account surpluses for many years. This year, foreign investors have reduced their exposure to the Thai market by $ 10.6 billion (nearly $ 100 billion), according to official statistics.
– The situation is definitely not ideal for investors, especially if the protests intensify. We will likely see a transfer of capital from Thailand to other markets in the region. The Thai baht will definitely be weaker, currency trader Mingze Wu of StoneX Group in Singapore tells Bloomberg.
Thailand’s National Assembly approved an economic package of measures to support the economy of the equivalent of 1.9 billion baht (560 billion kronor), more than 10 percent of the annual value creation in 2019.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be made with written permission or as permitted by law. For more terms, see here.
