Thailand’s stock market rose almost three percent closing at 437.06, up 12.27 points, in trade worth 19.48 billion baht (US$560 million) on news that the political deadlock plaguing the country since the past six months was resolved.
As England born Abhisit Vejjajiva head of he opposition Democrat Party was declared the winner in a parliamentary vote, business leaders throughout the country welcomed the decision. The challenge they now feel is for the new political party to form a strong team and improve the economy while keeping society and politics in harmony. Agriculture, small businesses, tourism and labor are the four sectors that need the most government support.
“The faster [the Democrats] are able to restore confidence, the more public support and trust there will be in their team. I want to see the new government pass the 100-billion-baht stimulus package as soon as possible,” Mr Santi Vilassakdanont, the chairman of the Federation of Thai Industries (FTI) told the Bangkok Post.
Vejjajiva, Thailand’s fourth prime Minister this year ends seven years of political dominance of electoral politics by parties loyal to the former prime minister, Thaksin Shinawatra. Vejjajiva who won on Monday by 37 votes is one of Thailand’s youngest Prime Ministers. Born in Newcastle, England, to parents who were both professors of medicine, he was educated at Eton and at Oxford, where he graduated with first-class honors in economics, politics and philosophy.
While handsome and well educated Vejjajiva remains favored by the middle, urban elite and businesses classes alike his biggest challenge will be to win over the rural masses - people Thaksin wooed successfully. Thailand’s rural areas is where Thaksin made his electoral base and where a majority of Thailand’s vote bank still lies. If he is successful at maintaining social harmony while promoting growth, Vejjajiva’s Democrat Party could last until the next elections, becoming the first Thai government to serve a full term after Thaksin’s administration.
After having being barred from politics for five years, in early December, Thaksin loyalists reconstituted their political party last week. The Pheua Thai party still controls the largest bloc of 200 seats amongst the 437 seats in Parliament. Thai citizens hope the Democrat Party will last its term, by-election are due next month to fill 29 seats that were previously held by pro-Thaksin legislators, and their outcomes could tip the balance against Abhisit.
