Thailand's embattled Prime Minister Paetongtarn Shinawatra said her coalition remained strong and a cabinet reshuffle had been settled, days after its second-largest coalition partner quit over a deepening border dispute with Cambodia.
Last week, coalition partner Bhumjaithai withdrew its support for the government hours after an audio recording of a conversation between Paetongtarn and former Cambodian leader Hun Sen was leaked.
The exit threw the government into turmoil as it scrambled to shore up coalition support for its slim majority amid a public backlash against the conversation, in which Paetongtarn appeared to kowtow before Hun Sen and criticise a senior Thai military commander.
By Tuesday, Paetongtarn said her coalition was strong and that the cabinet reshuffle had been finalised, as her government approved $3.5 billion worth of infrastructure projects aimed at boosting growth.
"It's settled, I've spoken to all party leaders," she said, adding that the names were being vetted before they were sent to the king for approval.
"Coalition parties have been fully supportive."
Thailand's economy has lagged regional peers as it struggles under high household debt and borrowing costs, declining tourism arrivals and uncertainty around imminent U.S. tariffs.
Last year, the economy grew 2.5% with growth this year expected to be slightly above 1%.
A 38-year-old political novice and daughter of the divisive former Prime Minister Thaksin Shinawatra, Paetongtarn also dismissed speculation that she would take over the defence ministry portfolio, a closely watched position as the situation with Cambodia deteriorates.
Late Monday, the Thai military said it had closed border crossings into Cambodia to almost all travellers, including tourists and traders, citing security concerns as tensions simmer over a long-standing border dispute.
The latest flare-up was triggered after a brief clash in May left one Cambodian soldier dead. Both governments have since announced measures designed to punish the other, including Cambodia's recent suspension of all Thai fuel and gas imports.
Casinos in Cambodian capital Phnom Penh and along the borders with Thailand are a key part of the country's tourism industry and a draw for Thai visitors.
Thailand will now restrict all vehicles, tourists and traders from crossing at all land border checkpoints in seven provinces bordering Cambodia, the military said in a statement late on Monday, citing security concerns.
Exemptions for humanitarian reasons, including medical attention, students and other urgent matters were at the discretion of security units at checkpoints, it said.
The military said the measures would also assist in a crackdown on illegal scam centres in Cambodia, flagged by Paetongtarn on Monday.
Thailand would stop cross-border supplies of essentials, including electricity and internet connectivity, to areas in Cambodia where illicit operations are hosted, the prime minister told reporters.
Cambodia has denied those allegations.
