# Thailand’s Political Shake-Up: PM Paetongtarn Shinawatra Dismissed, Business Confidence Wavers

- Link: https://www.thailand-business-news.com/politics/241964-thailands-political-shake-up-pm-paetongtarn-shinawatra-dismissed-business-confidence-wavers
- Published: 2025-08-29T16:21:47+07:00
- Author: Nguyen Trang

BANGKOK — August 29, 2025: Thailand’s Constitutional Court has removed Prime Minister
Paetongtarn Shinawatra from office over an ethics violation, adding another twist
to the nation’s prolonged political turbulence. The ruling follows the emergence
of a leaked phone call with Cambodia’s former leader Hun Sen, in which Paetongtarn
allegedly undermined Thailand’s position during a contentious border dispute.

This ruling not only ends Paetongtarn’s brief tenure—just one year in office—but
also deepens the uncertainty surrounding Thailand’s political future. She is the
sixth Shinawatra-backed prime minister to be ousted by military or judicial intervention
in the past two decades.

ADVERTISEMENT

### Fragile Coalition, Uncertain Succession

The Pheu Thai party, led by Paetongtarn and backed by her influential father Thaksin
Shinawatra, now faces a precarious path forward. With its coalition weakened and
bargaining power diminished, the party must navigate a complex process to elect 
a new prime minister. Among the five eligible candidates, only one—Chaikasem Nitisiri—
is from Pheu Thai, and he remains a low-profile figure with limited political clout.

Other contenders include former PM Prayut Chan-o-cha, now retired, and Anutin Charnvirakul,
who recently withdrew his party’s support over the leaked call. Until a successor
is chosen, Deputy Prime Minister Phumtham Wechayachai will lead a caretaker government.

### 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 Implications: Growth and Investor Sentiment

Thailand’s political upheaval comes at a precarious moment for its economy. The 
central bank forecasts GDP growth at a mere 2.3% this year, hindered by stalled 
reforms and sluggish investment. Business leaders and foreign investors are closely
monitoring the situation, worried that prolonged instability could erode confidence
further and stall critical infrastructure and trade projects.

The tourism sector, a vital pillar of Thailand’s economy, also faces uncertainty
as travelers may reconsider their plans amid political unrest. Additionally, export
growth, another key driver, remains under pressure due to global economic headwinds
and weakened demand. If the instability persists, it could strain consumer spending
and exacerbate challenges for small and medium-sized enterprises, which form the
backbone of the domestic economy. Policymakers are under mounting pressure to restore
stability and reassure investors, as the country risks losing its competitive edge
in the region.