Floods become test for Thailand’s premier ahead of elections

[BANGKOK] Thailand’s government on Monday (Dec 1) announced new relief measures for victims of one of the country’s worst floods in decades, weeks before an anticipated call for snap elections.

Finance Minister Ekniti Nitithanprapas said households affected by the disaster would each receive 9,000 baht (S$364) as officials race to contain both economic losses and criticism of the government’s response.

State-owned banks will offer a one-year moratorium on principal and interest payments for borrowers in flood-hit areas and extend interest-free loans of up to 100,000 baht for a 12-month period to existing clients whose homes or livelihoods have been affected, Ekniti said.

Small and medium businesses will be provided with low-interest soft loans, backed by the Thai Credit Guarantee, according to Ekniti.

Flooding in southern Thailand has claimed 176 lives, submerged towns, and disrupted life for more than 2 million households, with Songkhla province hit the hardest.

Many Thais have criticised the authorities for their slow and uneven response, while government officials have admitted to missteps in handling the crisis.

The economic toll is mounting. The government estimates that losses from the floods could be as much as 500 billion baht, with more than 2.9 million people affected, Ekniti said in a statement.

That figure far exceeds Krungsri Research’s projection of up to 23.6 billion baht in total losses, with hotels and restaurants among the worst affected. Meanwhile, damage to rubber and palm oil output – major industries in the region – could reach 6.7 billion baht in just one month, according to the Kasikorn Research Centre.

The floods have hit just as the peak tourism season begins, disrupting travel in the south, a region especially popular with visitors from Malaysia.

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The crisis coincides with Prime Minister Anutin Charnvirakul’s plan to dissolve parliament by the end of January and call elections – part of a deal with opposition parties that enabled him to form a government in September.

His government’s response to the flooding, as well as how quickly relief reaches affected communities, may shape public sentiment ahead of the vote. BLOOMBERG