The Crown Property Bureau in Thailand and the crisis of 1997

Abstract

The Crown Property Bureau is the monarchy's investment arm in Thailand. While the monarchy's political role has been much discussed since the 2006 coup, its economic foundations, activities and role have seldom been studied. To understand these aspects better, this article looks at how the 1997 crisis affected the Crown Property Bureau. The Bureau was particularly vulnerable because of its dependence on the performance of two private companies in which the Bureau was a major shareholder. Both companies, the Siam Commercial Bank and the Siam Cement Group, were in sectors that were hit hard by the crisis. The Bureau survived the crisis by making significant changes in its own management and investment policies, and by promoting similar reforms in two affiliated companies. As a result, the Bureau emerged with an income significantly higher than its peak pre-crisis level.