Crown Property Bureau in Thailand and Its Role in Political Economy

Description

The Crown Property Bureau (CPB) has long been ignored in Thai economic literature. However, the Bureau is a huge conglomerate and holding company, with an income in excess of 10 billion baht, and with links throughout the economy. It is also the largest landholder in the country. The history of the Bureau can be traced back to 1890, and by 1913 the two largest holdings were the Siam Commercial Bank (SCB) and the Siam Cement Company (SCC). These two enterprises remain the main sources of Bureau income, and, together with landholdings, form two of the three main financial pillars of the Bureau. Both the SCB and the SCC owe their establishment (in 1906 and 1913 respectively) largely to royal initiative and investment. The growth of the financial strength of the CPB was tied to the commercial and economic development of Bangkok and the Thai economy. After an inactive period between the wars, the Crown Property Bureau regained momentum after 1948. Much of this was due to the Directors of the CPB since then. The wealth of the CPB expanded in line with economic development after 1950 (including the growth of Bangkok) and with the prosperity and diversification of the major holdings, the SCB and SCC. The Asian economic crisis of 1997 had a significant effect on the financial position of the CPB, in particular due to the difficulties of the SCB and SCC. The crisis forced major changes in the strategies of the CPB and in the management and policies of the SCB and SCC. The CPB has been instrumental in developing and financing many royal projects, including those relating to the king’s “sufficiency economy” philosophy.