The junta and big business

18 05 2018

The Nikkei Asian Review has an article by Marwaan Macan-Markar that begins the much-needed task of unraveling the military dictatorship’s business dealings.

Over almost four years, the junta has quietly gone about reshaping the relationship between the military and business, both state enterprises and Sino-Thai conglomerates.

The article refers to a “cosy relationship between Thailand’s business-minded generals and powerful Thai-Chinese conglomerates.” It refers to junta-supporting companies as the Central Group, Thai Bev, Mitr Phol, Thai Union and the Bangkok Bank.

The report cites academic Veerayooth Kanchoochat who argues that the junta’s Pracha Rath project that brings the blue suits and khaki together represents the “collective endeavors of Sino-Thai conglomerates to replace competitive markets with hierarchy, rather than encouraging SMEs to catch-up with them.”

The report states that: “Conglomerates have been enticed to sign up with Pracha Rath with generous tax breaks and hopes for previously elusive project approvals.” It adds: “Officers in and out of uniform are meanwhile finding their way on to corporate boards and being given shares in return for acting as ‘fixers with authority’.”

In addition, academic Napisa Waitoolkiat is cited as saying “this symbiotic relationship has again become the ‘norm’.” PPT can’t recall hearing this since the 1970s. She added that state-owned enterprises have again become a sinecure for generals. She says that of “56 state-owned enterprises, 42 now have military directors…”. She adds that the movement of generals onto boards is beginning to include the private sector.

Those generals and their business “partners” are keen to protect this corrupt system, just as they were in the 1950s, 1960s and 1970s.


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