Thai royal wealth draws spotlight as transition nears

Subject

Outlook for the Crown Property Bureau.

Significance

The Crown Property Bureau (CPB), which manages the financial portfolio of the monarchy as well as the king's personal wealth, holds estimated assets equivalent to 10-15% of Thai GDP. As the health of King Bhumipol Adulyadej continues to deteriorate and the nation prepares for a royal transition, the CPB could become a central point of controversy, particularly in the political camp of former Prime Minister Thaksin Shinawatra and his populist 'red shirt' followers.

Impacts

• The land market will remain particularly skewed as long as the CPB exists.
• The CPB will attract greater scrutiny as debates about inequality gain more political traction.
• Moreover, further economic liberalisation will gradually reduce the economic influence of royal patronage.