Thai government in crisis: five major projects are in danger of failing!

Thai government in crisis: five major projects are in danger of failing!

Thailand's coalition government under Prime Minister Paetongtarn Shinawatra has faced significant difficulties in implementing key economic policies during her two years in office. Five major economic projects have turned out to be crippling, posing major challenges to the government. These projects are the entertainment complex, the southern land bridge, the digital wallet program, the high-speed train between airports and the planned increase in the minimum wage to 600 baht. Delays are partly due to political squabbles, program corrections and massive bureaucracy. These programs were initially initiated by her predecessor Srettha Thavisin after the 2023 election. The internal tension within the coalition and the resistance in the Senate have blocked other key projects, such as Pattaya Mail reported.

The first project worth mentioning is the law on the legalization of integrated entertainment venues. Although the Cabinet approved the law, the draft law was removed from the parliamentary agenda in April 2025. Coalition parties threatened to abstain and pressure was reported from former Prime Minister Thaksin Shinawatra. The Senate is calling for a referendum and warning of possible violations of the law. Prime Minister Paetongtarn has ordered information campaigns to emphasize the economic benefits of the law.

Details about the projects

Another key project is the land bridge project (SEC project), with an investment volume of over 1 trillion baht, which is intended to create a connection between the Gulf of Thailand and the Andaman Sea. However, interest from international investors waned after Srettha's resignation. The two parties Pheu Thai and Bhumjaithai claim authorship of the project, which could lead to tensions. A law to legally structure the project is currently undergoing public consultation and is expected to be submitted to Parliament in July 2025, with the tender for future investors scheduled for December.

The digital wallet program, which was supposed to guarantee every citizen 10,000 baht via digital wallet, was recently discontinued. Budget cuts have reduced the original budget of 450 billion baht to 157 billion baht, and the remaining amount is to be used for economic resilience projects. This decision was made on May 19, 2025.

In addition, the high-speed train project to connect Don Mueang, Suvarnabhumi and U-Tapao airports has not progressed since it was signed in 2019. Disputes over contract changes and payment sharing between the Railway Authority of Thailand and Asia Erawan Co. Ltd. have blocked progress as Bhumjaithai ministers block a proposal in Cabinet.

Minimum wage increase and economic challenges

Regarding the minimum wage increase to 600 baht, this was only partially implemented in individual provinces. A lack of a nationwide strategy and inconsistent implementation lead to dissatisfaction. There is a lack of consensus or a clear timetable within the coalition. Prime Minister Paetongtarn, who came to office after a court decision that deposed her predecessor, unveiled her policy agenda in September 2023. This included the continuation of Sretthas and the Pheu Thai Party of populist politics. It plans, among other things, handouts worth 450 billion baht to stimulate the economy, as well as debt restructuring and the legalization of casinos as a method of attracting investment and tourists, such as Channel News Asia reported.

Paetongtarn has made it clear that without significant financial measures, economic growth could not rise above 3% a year, warning that public debt could reach 70% of gross domestic product (GDP) by 2027. This currently stands at 63.74% of GDP. The challenges are significant, but the Prime Minister remains committed to pushing ahead with economic stimulus measures.