The monarch’s wealth

8 10 2021

In a very long post at Secret Siam, Andrew MacGregor Marshall has discussed the monarchy’s wealth and its drain on the taxpayer. He puts together an account that draws on multiple sources to assess both aspects.

It is behind a paywall, but if readers can get to it, it is well worth some time going through it.

Some excerpts:

According to an excellent analysis by Prachatai, at least 35.76 billion baht of taxpayer money — well over a billion US dollars — was allocated to the palace in the 2021/22 fiscal year. This represents 1.15 percent of the entire state budget, an extraordinarily vast sum for a country to spend on a supposedly purely symbolic monarchy in the 21st century.

What makes it even more obscene is that the Thai monarchy is already among the wealthiest royal families on the planet, but continues to guzzle taxpayer funds that are desperately needed by ordinary people struggling to stay afloat during the pandemic.

The palace has never been honest about the extent of its wealth, and most media have done an extremely poor job of finding out the facts, so most reporting about the size of the Thai royal fortune is inaccurate and incomplete.

Marshall sets the record straight – or as best as it can be with still limited data. He seems to conclude this on wealth:

Kevin Hewison, one of the foremost experts on the political economy of Thailand, estimated royal wealth at a minimum of $70 billion in his article “Crazy Rich Thais” published in the Journal of Contemporary Asia earlier this year:

Between 2006 and 2019, the ten wealthiest families/groups saw their wealth grow by more than seven times. If that figure is applied to Porphant [Ouyyanont]’s 2005 estimate, the CPB’s wealth in 2018 might have been more than $310 billion. However, because of the CPB’s focus on land and its conservative investment strategies, this is likely to be an overestimate. Using Porphant’s calculations of assets and applying a low 3 percent per year increase for land prices the figure for the CPB in 2019 might be more conservatively put at around $70 billion.

By way of conclusion, Marshall states:

There is no prospect that Vajiralongkorn will agree to reform of the monarchy and greater parliamentary oversight of palace finances. He is implacably opposed to making any concessions. He wants to use the royal fortune however he chooses, and nobody in the regime dares to try to stop him.

But with Thailand facing years of economic pain before it recovers from the damage caused by the coronavirus, and most Thais now aware of Vajiralongkorn’s egregious profligacy, the explosive issue of royal wealth has the potential to bring down the monarchy.


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