# Thai PM Suspended Following Leaked Call Scandal: Impact on Economy and Politics - Link: https://www.thailand-business-news.com/politics/231193-thai-pm-suspended-following-leaked-call-scandal-impact-on-economy-and-politics - Published: 2025-07-01T14:13:19+07:00 - Author: Nguyen Trang On July 1, 2025, Thailand’s Constitutional Court suspended Prime Minister Paetongtarn Shinawatra from her duties pending an investigation into a leaked phone call with former Cambodian leader Hun Sen, now Cambodia’s Senate President. **The ruling, prompted by a petition from 36 senators, accuses Paetongtarn of breaching ethical standards and constitutional provisions requiring “evident integrity” among ministers.** The controversy stems **from a June 15, 2025, conversation where Paetongtarn referred to Hun Sen** as “uncle” and allegedly criticized a Thai military commander, remarks critics claim undermined Thailand’s military and national sovereignty during a sensitive border dispute with Cambodia. ADVERTISEMENT ### A setback for the Shinawatra family dynasty The suspension marks a **significant blow to Paetongtarn’s leadership and the Pheu Thai Party**, already weakened by the Bhumjaithai Party’s withdrawal from the coalition over the scandal, leaving the government with a slim parliamentary majority. This follows the August 2024 dismissal of her predecessor, Srettha Thavisin, for an ethics violation, highlighting Thailand’s ongoing political instability. **The Shinawatra dynasty, which has dominated Thai politics for decades, faces renewed scrutiny**, with Paetongtarn’s father, Thaksin Shinawatra, also entangled in a separate royal insult case Public outrage has fueled large protests, with over 10,000 demonstrators, many linked to the anti-Shinawatra “Yellow Shirt” movement, rallying in Bangkok on June 28, 2025, demanding Paetongtarn’s resignation.** Her approval rating plummeted to 9.2% in a June 2025 poll, down from 30.9% in March**, reflecting eroded public trust. Critics, including conservative lawmakers and nationalist groups, accuse her of compromising Thailand’s interests due to her family’s close ties with Hun Sen, who admitted to recording and sharing the call with Cambodian officials. The Constitutional Court’s decision to accept the petition, filed under Sections 170 and 82 of the Thai Constitution, raises the possibility of Paetongtarn’s permanent removal if found guilty of ethical violations. Meanwhile, she retains her role as Minister of Culture, and a deputy prime minister is expected to act as interim PM until the court’s final ruling. **The scandal has fractured the coalition, with fears of further defections or a potential snap election.** ### Related**Posts** ### 󠀁[Prime Minister Anutin Congratulates Nene Royal on ‘AGT’ Triumph](https://www.thailand-business-news.com/entertainment/331069-prime-minister-anutin-congratulates-nene-royal-on-agt-triumph)󠁿 ### 󠀁[Thailand Emphasizes Maritime Boundary as a Key Focus in UNCLOS Talks](https://www.thailand-business-news.com/asean/cambodia/329235-thailand-emphasizes-maritime-boundary-as-a-key-focus-in-unclos-talks)󠁿 ### 󠀁[BRICS leaders call for restraint as trade and energy security move to centre stage](https://www.thailand-business-news.com/politics/328422-brics-leaders-call-for-restraint-as-trade-and-energy-security-move-to-centre-stage)󠁿 ### 󠀁[Anutin and Blair Talk About Thailand’s Economic Transformation](https://www.thailand-business-news.com/national/328673-anutin-and-blair-talk-about-thailands-economic-transformation)󠁿 ### Economic Ripples The political turmoil **threatens Thailand’s economic stability**, Southeast Asia’s second-largest economy. The private sector has expressed alarm over potential disruptions to the 2026 budget process, with investors wary of prolonged uncertainty. **Paetongtarn’s administration, already struggling to revive a sluggish economy**, faces challenges in implementing promised reforms. The Thai Chamber of Commerce warned that a prolonged crisis or government collapse could delay economic policies, as forming a new cabinet could take months The border dispute with Cambodia, which led to a Cambodian soldier’s death, has heightened nationalist sentiments, complicating diplomatic efforts and potentially affecting regional trade. Paetongtarn’s attempts to leverage her family’s ties with Hun Sen to de-escalate tensions backfired, further eroding confidence in her foreign policy. T**he uncertainty has also raised concerns about military influence, given Thailand’s history of coups, which could deter foreign investment.** ### What’s next? Paetongtarn, Thailand’s youngest and second female prime minister, took office in August 2024 at age 38, succeeding Srettha Thavisin. As the third Shinawatra to lead Thailand, her administration promised economic and social reforms but has been dogged by perceptions of her father’s influence. The leaked call scandal, combined with Thailand’s history of judicial interventions and military coups, underscores the fragility of her government. While Paetongtarn has apologized and vowed to face the court process, her refusal to resign and the ongoing investigation could deepen the crisis. The Constitutional Court’s final ruling will be pivotal. A decision to oust Paetongtarn could trigger a broader political crisis, potentially leading to a snap election or further coalition realignments. For now, Thailand braces for continued instability as the Shinawatra dynasty navigates legal, political, and public challenges.