Bank of Thailand Governor Race Enters Home Stretch
BOT Insider Roong Faces off Against Political Favorite Vitai
The Bank of Thailand (BOT) governor selection process has entered the final stretch, with two candidates—Roong Mallikamas and Vitai Ratanakorn—formally submitted to Finance Minister Pichai Chunhavajira for approval. The Cabinet will finalize the selection before sending it to the King for endorsement. Roong is a BOT insider, having spent her career at the central bank, while Vitai most recently served as head of the state-owned Government Savings Bank (GSB). The selection comes at a critical juncture for the Thai economy and a politically precarious moment for the government, with both financial pressures and political instability looming large.
Vitai’s last-minute entry into the race strongly suggests that he has secured important political backing to make a credible bid. In fact, it has been rumored that a powerful political figure asked him to leave GSB and join the contest. Vitai’s track record at GSB—including initiatives such as the Social Bank to support SMEs and grassroots borrowers—aligns closely with the government’s economic agenda, making him a natural choice. Notably, Pichai himself has publicly said that the next governor should be able to “work smoothly” with the Finance Ministry.
On the other hand, Vitai’s entrance as an outsider to the bank could create its own set of challenges. The bank has a distinctive institutional culture, and Vitai’s academic and work credentials do not particularly align. Additionally, Vitai’s political ties could raise questions about the bank’s independence, a core element of its culture. With Roong, this would not be the case. Her PhD in economics from MIT and two decades of experience at the bank bring immediate credibility—and, importantly, help preserve morale. Indeed, some have remarked that a Vitai appointment would be seen as a “revolution in the bank.”
A Vitai governorship could also be unsettling to financial markets. While Vitai would undoubtedly help smooth economic policy coordination between the bank and government, such coziness could concern investors that policymaking may become unbalanced, favoring narrow political interests over long-term macro-stability. For example, there could be pressure for aggressive interest rate cuts, currency depreciations, and government debt arrangements that markets may find imprudent, but which the government sees as essential to bring relief and growth to the economy. Consequently, markets could react negatively by reducing their financial exposure to the Thai market.
The last true insider to lead the bank was Tarisa Watanagase, who was appointed in 2006 by the conservative, post-coup government of Surayud Chulanont. This trend does not particularly favor Roong, but the current political situation makes the appointment less straightforward. Thaksin has a history of pushing against conservative forces through his policies and appointments, which could give Vitai an edge. At the same time, as the son of former Supreme Court President Sophon Ratanakorn, he could find acceptance among many conservatives.
That said, the recent leak of Prime Minister Paetongtarn’s phone conversation with former Cambodian Prime Minister Hun Sen has shaken the government, which may lead Thaksin to think twice before pushing Vitai and potentially triggering yet another political firestorm for his daughter’s already embattled government. Some even suggest the appointment could be used as a bargaining chip. Others say Thaksin may have already stepped back, citing a remark from Vitai that “he will be here [GSB] long-term.”
Stay tuned—we should know very soon how this high-stakes appointment plays out.