It was billed as Thailand’s deal of the century: Singapore’s Temasek Holdings’ $1.9bn takeover of a 49.6% stake in telecoms group Shin Corp. But the January 23 sale turned into a political disaster for outgoing Thai prime minister Thaksin Shinawatra, whose family received a tax-free windfall from the deal. On April 4, after months of street protests and a disputed election, Mr Thaksin agreed to step down after five years as premier.
It is too early to write off Mr Thaksin, a self-made billionaire who steered the Thai economy through its recovery from the 1997-98 Asian financial crisis. But his departure is likely to fuel a lengthy round of political jockeying and constitutional tinkering that relegates economic policymaking, and particularly large-scale public investment, to the backburner. The new government, due to be formed this month, is expected to defer big economic decisions before holding national elections by next year.
