Bank of Thailand Governor Race

BANGKOK (Reuters) – A former private sector executive with experience handling major state-owned financial institutions and a long-time central banker who could maintain continuity are in the race to become the next governor of the Bank of Thailand.

A seven-member panel this week shortlisted two candidates to replace Governor Sethaput Suthiwartnarueput, whose term ends on September 30.

Candidates

• Vitai Ratanakorn: President and chief executive of the Government Savings Bank, he is seen as more aligned with the Pheu Thai party-led government and may adopt a flexible approach with a broader perspective.

  • Background: Degrees in economics and law from Chulalongkorn and Thammasat universities. He previously served as Secretary-General of the Government Pension Fund, managing assets worth about 1.4 trillion baht ($43 billion). Appointment in 2020 to lead the Government Savings Bank.
  • Economic approach: Advocates for continued rate reductions to boost the stagnant economy.

• Roong Mallikamas: A long-time central banker with nearly 30 years of experience, currently a deputy governor overseeing financial institutions. Considered more hawkish.

  • Background: Holds an undergraduate degree from Harvard University and a Ph.D. in economics from MIT. Previously served as Senior Executive Vice President at Krungthai Bank.
  • Economic approach: May continue the current policies of the outgoing governor, which creates some concern among finance ministry officials.

Selection Process

Finance Minister Pichai Chunhavajira will select one candidate to propose to the cabinet for approval before royal endorsement. The cabinet is set to meet on Tuesday, and an announcement is anticipated during Pichai’s upcoming visit to the United States for trade talks.

The new governor will assume leadership during a tumultuous time marked by global trade issues and domestic challenges for Thailand’s economy, which is affected by high household debt, slowing tourism, and calls from the government for the central bank to cut rates in support of growth.

The Bank of Thailand (BOT) has some independence, but the government appoints its chief and approves its inflation target. Recently, the BOT maintained its key policy rate at 1.75% after previous cuts, keeping options open amid ongoing trade uncertainty and domestic political turmoil.

Conclusion

As the governor selection process unfolds, the divergent approaches of the candidates highlight a critical decision point for Thailand’s economic future.