THAILAND has started the search for a new central bank governor with “modern ideas” who can work closely with the state, as the incumbent’s rocky tenure nears its end.
Potential candidates are being discussed, Finance Minister Pichai Chunhavajira said. The five-year term for the current governor – Sethaput Suthiwartnarueput – concludes at the end of September.
There’s been a simmering dispute between the administration of Prime Minister Paetongtarn Shinawatra and the Bank of Thailand (BOT) on the best way to boost the economy, with sparring over monetary policy and inflation targets. Governor Sethaput has been touting the bank’s autonomy.
“The newcomer must be forward-looking with modern ideas,” Pichai told reporters at the finance ministry’s press party late on Friday (Jan 17). “You can’t look at problems in traditional ways nowadays as the world, especially financial markets, have changed significantly.”
The new governor must be able to “work closely together” with the finance ministry and the government, and have knowledge of both economics and finance, Pichai added.
A yet-to-be announced selection panel is required to submit a shortlist of candidates to the finance minister at least 90 days before Sethaput’s term ends. Aspirants will need to apply once the panel opens up the process.
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The government has been exploring ways to exert greater influence over the BOT, including pushing the candidacy of a former finance minister to be the new chairman of the bank. Opposition mounted to the pick, Kittiratt Na-Ranong, who was deemed unsuitable for the job due to his ties with the ruling party.
The chair is not involved in monetary policy meetings, but can evaluate the performance of the governor and have a say in which outside experts join the seven-member rate panel.
The finance ministry will likely submit a new candidate to the selection panel as Kittiratt is disqualified, said Finance Permanent Secretary Lavaron Sangsnit. The delay in appointing a new chair is unlikely to interrupt the BOT’s normal operations as Sethaput, who is also the vice-chairman, can hold temporary charge until the end of his term on Sep 30, he added.
Still, the new chairman should be appointed before then, Lavaron said.
Here are some of the names making the rounds in local media as potential candidates to be the new governor:
Roong Mallikamas
A career central banker, Roong, 57, currently serves as the BOT’s deputy governor for financial institutions stability. An alumnus of Harvard University, she also holds a doctorate from the Massachusetts Institute of Technology (MIT). Roong also previously held a senior management role at state-owned Krungthai Bank.
Suthapa Amornvivat
A former IMF economist and a director of macroeconomic analysis at the Finance Ministry, Suthapa, 50, is the founding chief executive of Abacus Digital, a fintech lending platform of SCB X. She’s a Harvard alumnus with a doctorate from MIT. She is the niece of Sompong Amornvivat, a former leader of the ruling Pheu Thai party. Her cousin Julapun Amornvivat is currently a deputy finance minister and her late father was a national police chief.
Ekniti Nitithanprapas
The 53-year-old career bureaucrat has held multiple senior positions at the Finance Ministry and is currently on the board of the TMBThanachart Bank and PTT Exploration & Production. He has a masters degree in economics from the University of Illinois and a doctorate from Claremont University. BLOOMBERG
