Filipino sultan who claimed Malaysian region dies



MANILA // A Philippine sultan whose armed followers invaded a vast Malaysian region, sparking a security crisis that left dozens of people dead this year, died on Sunday of multiple organ failure. He was 75.

Sultan Jamalul Kiram III’s wife, Fatima Celia, said her husband died in her arms at a Philippine hospital. She said that before he died, he ordered his family and followers to keep alive the historic territorial claims to Sabah state in Malaysia.

Although largely forgotten and dismissed as a vestige from a bygone era, Kiram’s Muslim sultanate, based in the southern Philippine province of Sulu, stirred up a security crisis in Malaysia when his younger brother and about 200 followers, dozens of them armed, barged into Sabah’s coastal village of Lahad Datu in February.

Stunned, Malaysia responded by sending in ground troops and launching air strikes. Dozens of people were killed in weeks of sporadic fighting before the standoff eased.

Malaysia has governed the resource-rich frontier region of timberlands and palm oil plantations in northern Borneo as its second-largest federal state since the 1960s.

The Kiram sultanate, which emerged in the 1400s, built a legend for its wide influence at the time and its feared Tausug warriors. Chinese and European leaders once sent vassals to pay homage to their powerful forebears, the sultanate spokesman Abraham Idjirani said. The Sulu sultanate preceded both the Philippine republic and Malaysia by centuries.

But overrun by history, the Kirams now carry royal titles and nothing much else.

“I’m the poorest sultan in the world,” an ailing Kiram said in March at his rundown residence in a Muslim village in Manila.

The Kirams claim Sabah has belonged to their sultanate for centuries and was only leased to Malaysia, which they say pays them a paltry annual rent. Malaysian officials contend the payments are part of an arrangement under which the sultanate has ceded the 74,000 square kilometres of Sabah territory to their country.

Philippine presidents have relegated the volatile feud to the back burner despite efforts by the Kirams to put it on the national agenda.

Kiram’s sultanate still has hundreds of followers in Sulu and nearby southern provinces, which are among the Philippines’ poorest and are troubled by Muslim rebels, Al Qaeda-linked extremists and outlaws.

Kiram’s family said he would be buried in his hometown of Maimbung in Sulu.

He had eight children with two wives and will likely be replaced by a younger brother, Esmail Kiram II, in a succession often marred in the past by clan infighting and claims by fake descendants.

* Associated Press

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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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