Economist takes over as Thai finance minister

The Straits Times, March 7, 2007


BANGKOK - THAILAND named former World Bank economist Chalongphob Sussangkarn as its new Finance Minister yesterday, in the continuing fallout from last year's military coup.

Deputy Prime Minister Kosit Panpiemras said Mr Chalongphob, the head of a leading Thai think-

tank, would replace Mr Pridiyathorn Devakula, who resigned abruptly last week.

Mr Kosit also told reporters he would oversee the economy himself, while consulting Mr Chalongphob on policy-making.

'I will consult with Chalongphob after the royal command comes out (confirming the appointment),' Mr Kosit said.

The appointment requires the approval of King Bhumibol Adulyadej, which normally takes several days.

Mr Chalongphob, 56, heads the Thailand Development Research Institute and already acts as a top economics adviser to army-installed Prime Minister Surayud Chulanont.

The announcement received a lukewarm response from markets, which dealers said remained under pressure after a week of heavy losses on exchanges around the globe.

Thailand's economy has been hit by sagging investor confidence as the military-backed government, which came to power after the September coup, executed a host of policy blunders, including controversial currency rules.

Mr Chalongphob has publicly opposed the currency controls, which have mostly been eased. However, the damage to investor confidence has already been done and analysts questioned whether he would be able to turn things around.

'He is qualified to be the Finance Minister. What's in doubt is how fast he can pick up this government's economic policies and work along with the economic team,' said Mr Pornsilp Pacharintanakul, head of Thailand's Board of Trade.

AGENCE FRANCE-PRESSE