Pheu Thai party leader Sudarat Keyuraphan listens to Future Forward Party leader Thanathorn Juangroongruangkit during a joint press conference in Bangkok. AFP
Pheu Thai party leader Sudarat Keyuraphan listens to Future Forward Party leader Thanathorn Juangroongruangkit during a joint press conference in Bangkok. AFP
Pheu Thai party leader Sudarat Keyuraphan listens to Future Forward Party leader Thanathorn Juangroongruangkit during a joint press conference in Bangkok. AFP
Pheu Thai party leader Sudarat Keyuraphan listens to Future Forward Party leader Thanathorn Juangroongruangkit during a joint press conference in Bangkok. AFP

Thailand's opposition forms alliance, claims lower house majority


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Thailand's Pheu Thai party said on Wednesday that it has the right to try and form a government after creating a "democratic front" with other parties after a disputed election.

Pheu Thai says it now has 255 seats, giving it a majority in the lower house of parliament. However, the coalition would likely fall short of electing a prime minister, which requires a combined vote with the upper house of parliament, the Senate, which is entirely appointed by the military junta that in 2014 overthrew an elected Pheu Thai government.

Pheu Thai's prime ministerial candidate Sudarat Kayuraphan told a news conference that together with the other parties in the "democratic front" the opposition alliance would win 255 seats, based on calculations drawn from partial results.

Unofficial results of Sunday's election have been delayed until Friday amid a confused vote count and allegations of fraud.

The pro-military Palang Pracharat party, which wants junta chief and leader of a 2014 coup Prayut Chan-o-cha to stay on as prime minister, has also claimed the right to form a government based on its early lead in the popular vote.

In truth, it's not that simple for either side.

The fragmented parliament that voters handed them will – instead of the return to democracy that many had hoped the election would deliver – plunge the country into political gridlock and uncertainty.

The 255 seats needed for a majority will not necessarily allow the largest party or coalition to form a government as cabinet is appointed by the prime minister. Critics of the rules brought in by the junta three years ago say that it was introduced by the military to prevent opposition groups returning to power.

With the backing of any of the 250 seat Senate military appointees unlikely, it will be almost impossible for a non-military backed candidate from gaining the needed 350 seats needed from both houses to appoint a head of government.

Without its own prime minister to make the coalition a government, the democratic front would instead become a strong, majority opposition.

Meanwhile, Prayuth's party needs only about 126 House seats to vote with the 250 Senate members to make him prime minister and form a new government – albeit a minority one.

Palang Pracharat is likely to win around 120 lower house seats on its own. Only two other parties, with about 6 seats combined, have publicly taken its side.

Both sides are trying to recruit other unaligned parties, which have combined seats of more than 100.

Without a majority, a Parayuth government would struggle to pass laws but will likely try to woo opposition members across the aisle to tip the scale in its favour.

But such a new government would only have weeks to pass the most significant law: the next fiscal year's budget bill. A failure to pass this bill could cripple the new administration.

With the Democratic Front likely to block such a bill, they could trigger a no-confidence motion and oust the new Prayuth led administration.

The process would then begin again.

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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.

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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.

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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.

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“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.”

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

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The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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Stay indoors when conditions are particularly poor.

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