Death of Thailand’s King Bhumibol Spells Period of Uncertainty
October 13, 2016
Source: Yahoo Finance
The world’s longest reigning monarch, Thailand’s King Bhumibol Adulyadej died Thursday aged 88.
The news briefly crashed some websites. The Nation announced his departure with the headline: “Nation Weeps Over His Majesty’s Departure.”
King Bhumibol had reigned for some seven decades and was widely regarded as a father figure in the middle income South East Asian nation. Many in Thailand considered him to be a god.
He died after a prolonged period of illness– recent medical bulletins pointed to respiratory problems as well as kidney and liver troubles – and he has rarely been seen in public for years.
His death will – at best — mean a period of political, cultural and economic uncertainty. The prospect of worse outcomes, including civil unrest or fighting, is real.
While King Bhumibol was alive most political and social groups felt an obligation to maintain some kind of social compact, even if this has meant bowing down to a military regime which deposed a civilian government in 2014.
Without the respected figure of the King, it will be difficult to keep a lid on all of the different forces that could re-emerge or be created in the aftermath.
These include: tussles between monarchists and democrats; battles between Bangkok based elites and the poorly educated masses, especially in the North of the country; the possible return of exiled former prime Minister Thaksin Shinawatra; armed Muslim separatists in the deep South of the country; and between traditional religious groups and secular modernizers.
The military junta which goes by the name of National Council for Peace and Order has offered an anti-corruption drive as a fig leaf of credibility for engineering Thailand’s 12th military coup since the end of the absolute monarchy in 1932.
Whether the NCPO has reduced corruption or merely replaced its chain of command is a moot point. It has certainly proved deeply illiberal; increasing censorship, reducing free expression and wielding draconian ‘lese majeste’ laws to silence even the mildest critics. All that supposedly in order to build a regime strong enough to withstand the upcoming explosions.
There is also the unedifying prospect of a battle for succession within the Thai royal family. The heir apparent Crown Prince Maha Vajiralongkorn is not popular. He currently appears to have the support of the NCPO, but it is possible that the generals may oversee an enforced abdication and handover of the monarchy within a couple of years to sister, Crown Princess Maha Chakri Sirindhorn.
The uncertainties are likely to have effects on the Thai economy which is a major food exporter, a major manufacturing sub-contractor (especially for Japanese and Korean cars and electronics firms), a top tourist destination and a facilities hub for the film industry in the region.
After remaining strong for most of the past year, the Thai currency weakened 3% in early October as palace bulletins on King Bhumibol’s health became bleaker.
Further uncertainty would increase the risks of doing business in Thailand, while further falls in the value of the Baht would make it cheaper. Nevertheless, for tourists and film makers the choice of staying away for a while would be a relatively easy one.
ooo
Thailand's King critical, what happens if he dies?
Munir Uz Zaman | AFP | Getty Images
Thai women hold portraits of Thai King Bhumibol Adulyadej as they pray for his health at Siriraj Hospital, where the king is being treated, in Bangkok on October 12, 2016.
Bhavan Jaipragas
8 Hours Ago
SCMP via CNBC
Royal succession in Thailand will be seamless when it is eventually triggered, palace observers say, as the acutely taboo topic resurfaced on Wednesday following growing signs the health of the revered 88-year-old King Bhumibol Adulyadej is deteriorating.
Prime Minister Prayuth Chan-ocha abruptly cancelled a scheduled visit to the rural Chonburi province as the Thai stock market and the baht took a beating for the third straight day after an official statement over the weekend described King Bhumibol's health as "unstable".
The palace statement first released late Sunday said the world's longest reigning living monarch was in a "generally unstable" condition after treatment to purify his blood and drain excess cerebrospinal fluid.
The statement said the king was put on a ventilator after his blood pressure dropped following the procedures. His doctors were monitoring him closely as "the overall symptoms of his sickness are still not stable," it said.
In a fresh online statement on Wednesday afternoon, the government provided updates on how the public could "sign and write well-wishing messages" but did not give further updates on the monarch's health.
Thai monarchy observers said the choice of words stood out from previous official updates on the ailing king's health. The widely venerated monarch enthroned since 1946 has been out of the public eye in recent years due to a range of health issues including renal failure. The palace has released more frequent updates of his health this year.
Ailing Thai king's health 'not stable' after haemodialysis treatment, palace says
Commentary from within Thailand about the king's health and succession plans is scarce because of the country's tough royal defamation laws, which has seen increased usage under the current military government.
Royal succession in Thailand will be seamless when it is eventually triggered, palace observers say, as the acutely taboo topic resurfaced on Wednesday following growing signs the health of the revered 88-year-old King Bhumibol Adulyadej is deteriorating.
Prime Minister Prayuth Chan-ocha abruptly cancelled a scheduled visit to the rural Chonburi province as the Thai stock market and the baht took a beating for the third straight day after an official statement over the weekend described King Bhumibol's health as "unstable".
The palace statement first released late Sunday said the world's longest reigning living monarch was in a "generally unstable" condition after treatment to purify his blood and drain excess cerebrospinal fluid.
The statement said the king was put on a ventilator after his blood pressure dropped following the procedures. His doctors were monitoring him closely as "the overall symptoms of his sickness are still not stable," it said.
In a fresh online statement on Wednesday afternoon, the government provided updates on how the public could "sign and write well-wishing messages" but did not give further updates on the monarch's health.
Thai monarchy observers said the choice of words stood out from previous official updates on the ailing king's health. The widely venerated monarch enthroned since 1946 has been out of the public eye in recent years due to a range of health issues including renal failure. The palace has released more frequent updates of his health this year.
Ailing Thai king's health 'not stable' after haemodialysis treatment, palace says
Commentary from within Thailand about the king's health and succession plans is scarce because of the country's tough royal defamation laws, which has seen increased usage under the current military government.
Serhat Unaldi, a Germany-based author of a book about the monarchy, said the phrase "not stable" is "indeed an unusual choice of words".
"The king seems to be in a critical condition," he said.
Patrick Jory, a Southeast Asian history expert at Australia's University of Queensland, said the sharp drop in the Thai stock exchange on Monday following the announcement "is probably the clearest indication of public sentiment about this news".
"If there is not another statement soon saying that the king is now 'stable', people will assume that his health remains 'unstable', which will likely cause further alarm," said Jory, who specializes in the history of the Thai monarchy.
"Everyone is aware of the state of the king's health, even though they cannot express it openly because of the sensitivity around the monarchy."
King Bhumibol is the ninth king of the 234-year-old Chakri dynasty, and ascended the throne after his elder brother King Ananda Mahidol died in a mysterious shooting. The reigning monarch is widely respected for his role in restoring the prestige of the previously floundering institution and for acting as an unifying force in a country beset with deep-seated political divisions between city-dwelling elites and the rural poor.
The kingdom has seen 19 coups d'etats – including 12 successful ones – since absolute monarchy was abolished in 1932.
Foreign-based experts as well as Thailand-based political observers who chose to remain anonymous told This Week in Asia there is little doubt the current Crown Prince Vajiralongkorn, 64, will become king when his father dies.
"My view is that the prince will become king. I do not anticipate opposition. The junta has made it clear enough that they are behind the prince," said Hewison, referring to the current administration led by former army general Prayuth Chan-ocha, who seized power in 2014.
Unaldi said he believed Vajiralongkorn's position as the future king is "cast in stone".
"There is no alternative to Vajiralongkorn. According to the Palace Law of Succession, he is the rightful heir to the throne," said the author of Working Towards the Monarchy: The Politics of Space in Downtown Bangkok.
Jory said it will be difficult for many Thais to accept the death of the current monarch even as they prepare to witness the first coronation in many generations.
This is "because of the centrality of the monarchy and the long reign of the present king," he said.
"It is likely that there will be a long period of mourning, perhaps up to a year or more," he added.
Udo Weitz | Bloomberg | Getty Images
King Bhumibol and his wife Sirikit in 2007.
Other experts said the death of King Bhumibol could compel the junta to push back a general election it said it would hold late next year.
Junta chief Prayuth said in August he would push through with the plan after voters backed a new military-crafted constitution in a referendum.
The country has not had polls since 2011, and has been bitterly divided since the 2006 coup against prime minister Thaksin Shinawatra, the billionaire telecom tycoon turned politician.
After the restoration of democracy, the military again intervened in 2014 to topple a government led by Thaksin's sister Yingluck Shinawatra.
The Shinawatras are popular among Thailand's north and northeast rural poor, but are opposed by the royalist elite.
Hewison said in the event of the king's death, the military will "postpone the promised election next year".
According to Jory, the military rulers are likely to remain in power during the mourning period and until the royal succession is completed "in order to guarantee political stability".
He added: "The test will come when Thailand returns to civilian rule and the ban on political activities is lifted".
Jeffrey Halley, a Singapore-based senior market analyst with Oanda, said the Thai stock market and the baht would remain under pressure amid uncertainty about the king's health.
"The King is universally revered by all sides and divides in Thailand and is regarded as a unifying influence and an arbiter in often messy politics behind the scenes," Halley said.
"We expect the SET (Stock Exchange of Thailand) Index to underperform its regional peers until a clearer picture of the King's health appears…the Thai baht will also continue to be under pressure," he said.
.....
Thai markets might face more uncertainty: Expert
10 Hours Ago
CNBC
Thai markets might be facing greater uncertainty following King Bhumibol's condition but a slowdown will be temporary, says The Motley Fool's David Kuo.
For Video, go to the following link:
http://video.cnbc.com/gallery/?video=3000558955
