Abhisit Vejjajiva was formally endorsed by King Bhumibol Adulyadej as Prime Minister of Thailand on 17 December 2008. Abhisit ascended to power during the 2008 financial crisis.
Key appointments in Abhisit's government included PAD activist Kasit Piromya as Foreign Minister, construction tycoon Chaovarat Chanweerakul as Interior Minister, and investment banker and former Abhisit classmate Korn Chatikavanij as Finance Minister.Asia One, Finance minister from Thai elite faces raft of economic woes, 21 December 2008 Massage parlor tycoon Pornthiva Nakasai was appointed Deputy Commerce Minister.
Abhisit's first act as prime minister was to send SMS texts to tens of millions of Thai mobile phone users. The message, signed "Your PM", asked people to help him solve the country's crisis. Interested phone users were asked to send back their postal codes, at a cost of three baht. Abhisit was criticized for violating privacy regulations in the mass SMS. The National Telecommunication Commission says that mobile phone service providers may not exploit client information, including phone numbers, without their consent. However, it did not pursue action against Abhisit.Bangkok Post, PM's text message an 'invasion of privacy', 19 December 2008Asia News, , 19 December 2009
According to a survey by Assumption University's Abac Poll in May 2009, Abhisit received a 70% approval rating, the highest within the cabinet. The government's overall approval rating was 59% "rather much or much" satisfied and 9.4% "very much" satisfied. Overall the government was rated 6.5 out of 10 by a majority of respondents.The Nation Most satisfied with Abhisit govt, poll finds 29 May 2009 In a nationwide survey conducted 24–25 December 2010, by Bangkok University, the government's two years in power were rated 4.61 out of 10, with the PM's performance at 5.17.The Nation Poll gives government low marks 26 December 2010
Domestic policy
Government debt Abhisit borrowed heavily to finance his various populist policies and stimulus packages. The government borrowed a record-breaking 1.49 trillion baht from 2009 to early 2011, compared to the previous 26 prime ministers who had combined borrowings of only 870 billion baht. Thailand's national debt at the end of February 2011 was 3.59 trillion baht, or 40% of GDP.MCOT, Thailand's public debt rises to 40% of GDP , 27 April By April 2011, the Governor of the Bank of Thailand, Thailand's central bank, warned that implementing Abhisit's populist policies might cause public debt to surge past the legal debt ceiling of no more than 50% of GDP. The government countered the BoT's warning by claiming it was just expression of opinion in a technical manner.Pattaya Mail, , 30 April 2011 Abhisit noted that several countries had experienced debt crises, but not Thailand.The Nation, PM Abhisit blasted for massive borrowing, soaring prices, corruption , 16 March 2011
Economic recession and stimulus
The global economic crisis had a major impact on Thailand, with unemployment increasing by 63% to 880,000 people nationwide between December 2008 and January 2009, and analysts predicting the country's economy could contract by as much as 5% on the year.MCOT, Thailand's January unemployment soars to 880,000 , 17 March 2009MCOT, Thai economy to contract 4.5-5 per cent: Finance Minister , 16 April 2009
Abhisit responded to the crisis with two economic stimulus packages.New York Times, Thai Leader Struggles at the Center of a Storm, 5 May 2009 The government announced the first, 117-billion-baht stimulus package in January 2009. The package included a one-time issuance of 2,000 baht (approximately US$75) checks to people making less than 15,000 baht (approximately US$500) a month.MCOT, Bt2,000 cheque dispersals end at Bangkok City Hall , 28 March 2009 A training program, dubbed "Ton Kla A-cheep" was initiated for up to 500,000 new graduates and unemployed people. Free government education was expanded to up to 15 years, as written in the constitution, saving approximately 2,000 baht per term per student. A pension of 500 baht a month was provided to those aged 60 and above. Price guarantees were instituted to subsidize rice, corn, and tapioca farmers. The government provided funds to villages nationwide to carry out projects based on King Bhumibol's sufficiency economy philosophy.
The cabinet approved the second, 1.4-trillion-baht package in May. The plan was called "Strong Thailand" (Thai Khem Khaeg), with the majority of the money dedicated to infrastructure improvements.AFP, , 5 May 2009 In addition, a program was initiated to provide resolve land-title issues for squatters living on state land.BangkokPost 5 July 2010BangkokPost 5 July 2010 The government attempted to transfer private loans from loan sharks to state-owned banks, protecting debtors from unreasonably high interest rate demanded by the loan sharks and helping them finance their families again.
By the end of 2009, Thailand's economy had only contracted by 2.3%, buoyed by 5.8% economic growth in the fourth quarter of the year.Business Week, Thai economy grows in Q4 after year of contraction, 22 February 2010
Public health Abhisit continued the Surayud junta's policy of compulsory licensing of pharmaceuticals, saying that it complied with the World Trade Organization's agreement on intellectual property. As of March 2009, he warned that there would be societal pressure to expand compulsory licensing if the US downgraded Thailand's trade status.Bangkok Post, , 5 March 2009
Despite opposition, Abhisit continued to support public health protection and refused to drop the Medical Malpractice Victim Protection Bill in the ongoing legislative process. Furthermore, he set up a national-level committee to improve the draft before sending the final copy to the parliament. "We need to push ahead with the legislation. For some contentious points in this bill, all sides just need to talk and cooperate," Abhisit said after a meeting with representatives from the Network for People's Medical Protection and the Federation of Medical Workers, where both sides sought to have a national committee set-up to improve the bill.Nationmultimedia, , 11 August 2009
In 2009, Abhisit said that it was his government's goal to reduce the number of new HIV cases in the country by 50% by 2011. He noted that new cases among married women increased by 30% to 40% and promised to be involved in a campaign to promote fidelity among married couples.TNA/MCOT, Thailand Aims to Halve New HIV Cases by 2011, Prime Minister Says, 29 May 2009 In 2010, he became a presenter in his government's "honest husband" campaign and vowed to become a role model of fidelity for all married men.The Nation, Abhisit vows to be role model 'honest husband' , 28 May 2010
Energy The Abhisit government subsidized the price of diesel, LPG cooking gas, and household electricity. He maintained a retail price of diesel of no more than 30 baht/liter by reducing fuel taxes and spending from the government's oil fund. 8.5 billion baht per month in government tax revenue was forgone due to the cuts in excise tax. By mid-April, the oil fund had 34 billion baht in cash and 29 billion baht in debt, leaving it with 4.5 billion baht in net funds. The fund was expected to be completely depleted by the end of April.The Nation, Korn defends diesel tax reductions , 19 April 2011 Abhisit extended temporary government subsidies which provided free electricity to about 30 million Thai households that used fewer than 90 units a month. In April 2011, he made the free-electricity policy permanent, although industrial and commercial electricity users (rather than the government) were now burdened with paying for the 12 billion baht per year subsidy.The Nation, , 20 April 2011
Transportation
Bus and train subsidies The Abhisit government repeatedly extended temporary subsidies that provided free bus and train rides. Abhisit also proposed making the free rides permanent.
BTS Under the guidance of Abhisit's administration, the BTS Sky Train, which is a rail-based mass transit system in Bangkok, launched a new 2.2-kilometre extension linking the Saphan Taksin Bridge Station to Krung Thonburi Station and Wong Wian Yai Station on the Thonburi side of Bangkok. The new service linked Sathorn Road, one of Bangkok's prime business districts, to Thonburi on the west bank of the Chao Phraya River. Under the "Thai Khem Khang Project", BTS is in the process of constructing the 6.7-kilometre extension from Onnuj station to Sukhumvit 107. This is expected to be ready within two years. Another section of 12.8-km to connect to Bang Pu district in Samut Prakan Province has also been planned for a later stage. Additionally, a 4.5-kilometre route from Taksin Bridge to Nong Khaem district is also expected to begin service within two years.
High-speed train route Abhisit emphasized that high-speed trains would not only facilitate the rapid movement of goods and people, but would provide even more benefits to Thailand once ASEAN becomes a single market and Thailand becomes a stronger production base for the economic community. As Asian economies look more towards regional rather than Western trade for future growth, it's a forward-looking plan with the potential to position Thailand as a highly efficient regional hub connecting China to Southeast Asia.
The project will have two phases: from Nong Khai in the northeast to Bangkok, from Bangkok to Rayong, and from Bangkok to Padang Besar, on the border with Malaysia. The transnational line will start from Kunming in China's southwestern Yunnan province and run south to Thailand through Laos and Vietnam.
The entire project, from Nong Khai to Bangkok and Rayong, and from Bangkok to Padang Besar, will cost almost 350 billion baht. The railway tracks will be built parallel with existing tracks, but with a wider gauge of 1.4 metres, instead of the current gauge of 1 metre. The Nong Khai-Bangkok route says it will cover a total distance of 615 kilometres. The track will run through a tunnel of about 10 km and will be elevated over a distance of 59 km. The high-speed train will travel at no less than 200 kilometres per hour. It will be electrically powered, and studies have shown that existing power supplies will be sufficient.
Once this project has been completed, travelling by train from Bangkok to Kunming will take around five hours, three hours from Bangkok to Vientiane, and less than five hours from Bangkok to Padang Basar.The Nation, , 8 September 2010Asia News Network, , 1 September 2010
Airport link Abhisit's administration completed the Airport Link project that was delayed by the previous government due to several factors. Suvarnabhumi Airport's Link, which connects downtown Bangkok and Suvarnabhumi airport, began commercial services on 23 August 2010. The Airport Link's City Line will run every 15 minutes and the Express Line every 30 minutes. Both lines operate from 06:00 to midnight. The trains have a maximum speed of 160 kilometres per hour. The City Line will make eight stops across the capital, starting at Phaya Thai, before heading to the airport. The trains take 30 minutes from Phaya Thai to Suvarnabhumi.Bangkok Airport Train, , 23 August 2010
Information and communications technology Abhisit's information and communications technology (ICT) policy included censorship of Internet sites the government considered offensive to the monarchy. Abhisit's ICT minister, Ranongruk Suwunchwee, met with officials of TOT and CAT (both state-owned telecommunications firms) in 2009 to inform them of the policy. Ranongruk said 45 million baht was spent on a war room where government staff worked around the clock to block access to certain websites in Thailand. By September 2009, more than 17,000 "offensive" websites were blocked.Bangkok Post, Last One in Again, 6 Jan 2019