Thai political drama continues
The Thai political drama has resumed with the sudden return of former PM Thaksin Shinawatra and the lifting of the country's badly-implemented capital controls.
The two developments may seem unrelated but they have the combined effect of showing the continued influence of the man who was embroiled in the controversial deal with Singapore government investment arm Temasek Holdings in 2006.
Despite criticisms against Thaksin over a host of issues, the Thai strongman had run the country better than a bunch of generals.
Although the Thai election has concluded, Thaksin could still play a significant role in the national political theater through his proxies. He's got strong and interesting ideas like owning Manchester City Football Club, where he is the chairman. And he has plenty of money, especially from the Temasek deal, to bankroll any fresh campaign.
While the Thai saga continues, some of the basic questions about the Shin deal may re-surface. Why did Temasek buy Shin in the first place? Although Singapore politicians had said ad nauseam that it was simply a commercial deal, nobody was convinced.
As mentioned earlier, there was one sexy theory that could help explain the whole saga. According to the theory, the payment of S$3 billion by Temasek and partners to Thaksin for his holding company was part of a quid pro quo to abandon Thailand's long-cherished dream to build the Kra Canal.
According to one wit, Thaksin had wanted to build the canal and resolve two issues at one go -- turn Thailand into a major shipping hub, and isolate the Islamic separatist movement in southern Thailand. A canal will literally divide Thailand into two distinct regions.
Will Thaksin stick to the purported deal? Or will the Kra Canal idea resurface? Any such deal would have been conditional on Thaksin remaining in power.
But Thaksin the civilian businessman can now theoretically push for the construction of the canal, which will enable ships to bypass Singapore and sail from South China Sea to Andaman Sea and Indian Ocean.
After all, nobody expected a 'commercial' deal to trigger a military coup that toppled the country's leader.
Note: The pix from the website of Singapore's BT showing Thaksin paying homage to his country outside the airport in Bangkok on Feb 28.
1 comment:
Hi sophie, the Canal theory seems like a rumour.
Every 10 years or so the Canal idea is dusted off and presented and after every new round of feasibility study it is forgotton.
The Japanese were looking at it in the 80s and now they are in no economic shape to go through with the plan.
Chinese have shown some interest in the recent years but I don't think any of the countries in the region trust China enough to allow it go through with the plan.
The transportation can be achieved in a much more cost effective way by building a container carrying train/land route across the Kra Isthmus.
Also, I think, the last thing Bangkok would want is a physical separator between the South and rest of Thailand. It would only make it harder for them control the south.
Event the Canal planning body's website has died. http://www.kracanal.or.th/
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