Military personnel search the area of a roadside bomb blast in the southern province of Pattani, Thailand, September 22, 2017. Surapan Boonthanom / Reuters
Military personnel search the area of a roadside bomb blast in the southern province of Pattani, Thailand, September 22, 2017. Surapan Boonthanom / Reuters

Four rangers killed by bomb in rebel-hit south of Thailand



Four Thai army rangers were killed on Friday when a roadside bomb tore through their lorry as they were securing a road for teachers. The attack was the, latest carnage in an insurgency plaguing the predominantly Muslim region along the border between southern Thailand and Malaysia.

The region has seethed with violence for more than a decade as ethnic Malay insurgents battle the Buddhist-majority state for more autonomy.More than 6,800 people have died -- most of them civilians -- in a conflict marked by weekly bombings and shooting attacks.

The rebels mostly target security officers in the three southernmost border provinces.But teachers, local officials and other perceived collaborators with the state are also frequently swept up in the violence.

Friday's blast in Pattani province left four rangers dead and six wounded, including one civilian, said deputy army spokesman for the south, Colonel Yuthanam Petchmoang.

The group was on a routine early morning patrol to clear a road used by teachers in Sai Buri district when the bomb exploded, tearing their silver pickup truck in two and carving a crater into the rubble-strewn road.

The explosive was tucked into a drainage tunnel beneath the road and detonated after four of the ranges stepped out of their vehicle to inspect the site. The southern Internal Security Operation Command (ISOC) said, "The incident was aimed to incite unrest and violence in the region without regard for the safety and livelihood of residents."

The attack comes as the Thai junta pursues talks with an umbrella group claiming to represent the rebels.So far the meetings have borne little fruit, with experts saying the rebel negotiators lack control over fighters on the ground.

The shadowy Barisan Revolusi Nasional (BRN) faction is believed to be behind most of the violence in the region, although it never claims attacks and shuns publicity.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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