Protesters chant slogans during a rally.
Protesters chant slogans during a rally.

Thai PM's cabinet crumbles



Cracks were appearing in Thailand's government yesterday after the foreign minister said he would step down, piling the pressure on the prime minister, who has drawn criticism for declaring a state of emergency in the capital in a bid to quash protests against him. Tej Bunnag, a career diplomat, was resigning because of his wife's ill-health, an aide said, according to local TV. The surprise announcement comes as the seven-month-old government faces its worst political crisis since democratic elections last December. Thousands of anti-government protesters have occupied government buildings for over a week to try to push Samak Sundaravej from power. Police clashed with the protesters on Tuesday, leaving one dead and several injured, and resulting in Mr Samak declaring a state of emergency in the capital.

The decision puts the army in control of the streets for the first time since martial law was lifted after a military 2006 coup that ousted Thaksin Shinawatra, the former prime minister, from power. The protesters accuse Mr Samak of being a puppet for Mr Thaksin, who is in exile in the UK. "If it [the resignation] is true, it is another step towards the end of this falling government," Boonyakiat Karavekphan, an analyst at Ramkhamhaeng University, told Reuters. Even if the government falls, however, the conflict is far from over. There are several options out of the current impasse, including the resignation of the prime minister, the dissolution of parliament and the seemingly remote possibility of another coup, as different players jockey for position.

"There is a possibility that the prime minister will be forced to step down to form the new government," said Alongkorn Ponlabootr, the deputy leader of the opposition Democrat party. "It is highly involved behind the scenes." Mr Alongkorn said the decision to declare a state of emergency was a mistake. "It was the wrong decision, and I think something will happen in the next few days." Given recent history, the military is the obvious candidate to displace the civilian government, and the emergency rule enacted earlier this week placed the army chief, Gen Anupong Paochinda, in practical control of the capital.

An outright coup, however, seems unlikely not only because Gen Anupong has repeatedly denied any intention to oust the government (the 2006 coup leaders made similar protestations days before they took action), but also because he has consolidated a moderate cadre in the top echelons of military power. Mr Samak has also been careful to cultivate an understanding with the military leaders. When the anti-government protesters stormed Government House on Aug 26, the action that precipitated the current cascade of events, Mr Samak was conferring with the army chief at supreme military headquarters. In the annual reshuffle of top military posts, which was approved by the king later that week, Gen Anupong's allies consolidated control apparently without any political interference. "The hawks have pretty much faded out of the scene," said Avudh Panananda, a military affairs columnist for The Nation newspaper. "Certain officers might want to see the downfall of Samak, but they are not in a position stage a coup to accomplish this. "They would rather see the change via parliamentary system or street protests led by the People's Alliance for Democracy." With the army now on the streets, the military has assumed control for handling the protesters who are still camped out at Government House in Bangkok, and had occupied key airports in the south that cater to thousands of tourists every day. "Anupong is in charge of executing the emergency measures," Mr Avudh said. "He is running the show with Samak in the background. The Samak-Anupong alliance is working, hence there is no concern at this juncture for a coup. The utmost worry is whether and how Anupong will end the PAD rally inside Government House." But Gen Anupong has said the military would not tolerate bloodshed - a point where Mr Samak is particularly vulnerable because he is widely blamed for inciting the massacre of students at Thammasat University in 1976. And the army has been hesitant to use force against the protesters. And in the background is Thailand's much-revered king, Bhumibol Adulyadej, who is generally considered above politics, but has in the past defused political tension during times of crisis. Mr Tej, the foreign minister, had previously worked in the king's principal private secretary's office. Another pressing issue for Mr Samak is the election committee's suggestion that Mr Samak's People's Power Party should be banned for vote buying in December elections. If the Supreme Court rules against the PPP, dissolving the party and banning its members from politics for five years, it would certainly spell the end of Mr Samak's tenure in power. But even were Mr Samak to dissolve parliament and call snap elections, the Democrats, the country's main opposition, acknowledge that supporters of the current government would still likely carry the day. "It's obvious that we will lose an advantage in the coming election. There is the possibility that we will be defeated," Mr Alongkorn said. "We don't want history to be repeated, but in reality and in practicality, the Thaksin party will win the next election, even though the People's Power Party is dissolved." jschertz@thenational.ae

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

The Bio

Favourite place in UAE: Al Rams pearling village

What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft

Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans

Best time to swim in the sea: When there is enough light to see beneath the surface

The biog

Hobby: "It is not really a hobby but I am very curious person. I love reading and spend hours on research."

Favourite author: Malcom Gladwell 

Favourite travel destination: "Antigua in the Caribbean because I have emotional attachment to it. It is where I got married."

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
Afro%20salons
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THE BIO

Favourite author - Paulo Coelho 

Favourite holiday destination - Cuba 

New York Times or Jordan Times? NYT is a school and JT was my practice field

Role model - My Grandfather 

Dream interviewee - Che Guevara

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.

  • It’s So Easy
  • Mr Brownstone
  • Chinese Democracy
  • Welcome to the Jungle
  • Double Talkin’ Jive
  • Better
  • Estranged
  • Live and Let Die (Wings cover)
  • Slither (Velvet Revolver cover)
  • Rocket Queen
  • You Could Be Mine
  • Shadow of Your Love
  • Attitude (Misfits cover)
  • Civil War
  • Coma
  • Love Theme from The Godfather (movie cover)
  • Sweet Child O’ Mine
  • Wichita Lineman (Jimmy Webb cover)
  • Wish You Were Here (instrumental Pink Floyd cover)
  • November Rain
  • Black Hole Sun (Soundgarden cover)
  • Knockin’ on Heaven’s Door (Bob Dylan cover)
  • Nightrain

Encore:

  • Patience
  • Don’t Cry
  • The Seeker (The Who cover)
  • Paradise City
2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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.”

If you go

The flights

Etihad and Emirates fly direct from the UAE to Chicago from Dh5,215 return including taxes.

The hotels

Recommended hotels include the Intercontinental Chicago Magnificent Mile, located in an iconic skyscraper complete with a 1929 Olympic-size swimming pool from US$299 (Dh1,100) per night including taxes, and the Omni Chicago Hotel, an excellent value downtown address with elegant art deco furnishings and an excellent in-house restaurant. Rooms from US$239 (Dh877) per night including taxes. 

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

Abu Dhabi GP starting grid

1 Lewis Hamilton (Mercedes)

2 Valtteri Bottas (Mercedes)

3 Sebastian Vettel (Ferrari)

4 Kimi Raikkonen (Ferrari)

5 Daniel Ricciardo (Red Bull)

6 Max Verstappen (Red Bull)

7 Romain Grosjean (Haas)

8 Charles Leclerc (Sauber)

9 Esteban Ocon (Force India)

10 Nico Hulkenberg (Renault)

11 Carlos Sainz (Renault)

12 Marcus Ericsson (Sauber)

13 Kevin Magnussen (Haas)

14 Sergio Perez (Force India)

15 Fernando Alonso (McLaren)

16 Brendon Hartley (Toro Rosso)

17 Pierre Gasly (Toro Rosso)

18 Stoffe Vandoorne (McLaren)

19 Sergey Sirotkin (Williams)

20 Lance Stroll (Williams)

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Williams at Wimbledon

Venus Williams - 5 titles (2000, 2001, 2005, 2007 and 2008)

Serena Williams - 7 titles (2002, 2003, 2009, 2010, 2012, 2015 and 2016)