(Bloomberg) -- Tens of thousands of anti-government protesters staged a rally for a second straight day in Thailand’s capital, defying a state of emergency declared by Prime Minister Prayuth Chan-Ocha to quell escalating demonstrations in support of monarchy reform and greater democracy.
Protesters shouting “Prayuth get out” gathered at Ratchaprasong intersection in the middle of Bangkok’s main shopping district and pushed police barricades, demanding the release of leaders arrested by the police in a morning raid. The crowds swelled throughout the evening before dispersing around 10 p.m. They vowed to return to the same spot on Friday evening.
The large crowd shows that the protests are unlikely to abate despite the arrest of key leaders and the government’s move to ban gatherings of five or more people. The mounting protests have weighed on the nation’s currency and stocks, with foreign investors turning net sellers of $10.6 billion so far this year. The baht fell Thursday while the benchmark SET Index of stocks closed 1.7% lower, extending losses this year to 21%.
“The situation is definitely less than ideal for investors especially if the protests escalate,” said Mingze Wu, a currency trader at StoneX Group in Singapore. “We’ll likely see an exodus of funds from Thailand into other similar countries in the region. The baht will definitely be weaker.”
The protests, led at first mostly by students, have broken taboos about publicly criticizing the royal family, which sits at the apex of power in Thailand. Demonstrators have questioned taxpayer funds that go toward royal affairs as well as laws that stifle discussion of the monarchy.
The demonstration Thursday night came a day after tens of thousands protesters broke through police lines in a march to Government House, Prayuth’s office, in an escalation of demonstrations that began in early July. Some protesters gave a three-finger salute -- a symbol of the demonstrations -- to a motorcade of Queen Suthida Bajrasudhabimalalakshana, who smiled and waved at them.
Those arrested included Arnon Nampa and Parit Chiwarak, according to the Thai Lawyers for Human Rights. Parit had written a statement calling for reform of the monarchy with 10 demands, including prohibiting the king from endorsing any coups and revoking laws that criminalize insults against King Maha Vajiralongkorn and top members of the royal family.
The protesters are also calling for the resignation of Prayuth, a former army chief who staged a coup in 2014. They are pushing to rewrite the constitution drafted by a military-appointed panel that helped him stay on following elections last year. The government has said it’s open to changes in some areas, but a process to rewrite the constitution has been delayed in parliament.
Prayuth said the government was ready to open public forums for the protesters “but everything has to be done under the law.” “The majority will have to listen to the minority, and the minority will have to respect different opinions too,” he said in a statement.
On Wednesday night, the government said legal actions would be taken against protesters who disrespected the monarchy -- one of the first official responses that directly referenced the criticisms of the palace. Prayuth also announced a so-called “Declaration of a Serious Emergency Situation in Bangkok,” which effectively banned protests as well as publication of news that could “harm national security” and “cause panic.”
A special cabinet meeting on Friday is expected to approve the emergency decree. The latest measures are in addition to a national emergency in place since the end of March to deal with the Covid-19 outbreak, which allows the government to enforce mandatory quarantines and streamline disease-control plans without multiple approvals.
The protests have now shifted to the heart of Bangkok. The location on Thursday night, in front of the Central World shopping mall, was the site of demonstrations in 2010 that ended with a clearance operation in which scores of people were killed.
The protests had gained momentum amid the worst economic crisis facing the tourism- and trade reliant nation, which has passed a $60 billion stimulus to battle the pandemic-triggered slump. The emergency may also hurt the government’s plan to gradually reopen tourism to foreign visitors from this month.
“The state of emergency will likely fuel the movement that’s already gaining momentum,” said Punchada Sirivunnabood, an associate professor of politics at Mahidol University near Bangkok. “The protesters will likely continue their movement because they’re upset that the government isn’t listening to their demand.”
(Updates with comment from prime minister in 11th paragraph.)
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