Pichai reveals why he thinks the Thai stock index won’t hit 2,000
Finance minister blames companies for focusing on dividends to shareholders instead of reinvesting
The Thai stock market fundamentally hovers around 1,600-1,700 points, but it is unlikely to hit 2,000, Finance Minister Pichai Chunhavajira said on Saturday.
The veteran of Thailand’s stock and capital markets was offering insights on movements in the market. Before assuming a key role in the government’s economic team, he served as the chairman of the Stock Exchange of Thailand and held executive and board positions in several listed companies.
Pichai, who is also deputy prime minister, said: “I have never believed the Thai stock market would hit 2,000 points. While investors appreciate the Thai stock market, they primarily invest to collect dividends. Once they receive dividends, they sell off their shares. Thailand has many companies of this nature — profitable, cash-rich, but reinvesting little. Instead, they distribute their dividends to investors. This keeps the Thai economy reliant on old production platforms,” said Pichai.
The lack of increased investment stems from long-standing structural issues. These persistent problems have hindered the emergence of new investments and innovative companies, particularly in advanced technologies, he said. “As a result, Thailand resembles an ageing tycoon — wealthy and well-off but with no clear vision for the future. The country continues to rely on past achievements without developing new economic drivers for sustained growth.”
Pichai emphasised the need for continuous investment in human capital, particularly through upskilling and reskilling initiatives, to attract critical industry investments. Preparing the workforce is essential to support new investments in key sectors, he said.
He also said that developing and integrating new technologies to benefit the economy requires time, with some technologies taking 20–25 years to mature. For Thailand to elevate its production capabilities and create a new economic growth engine (new S-Curve), it must capitalise on foreign funds inflows to invest in advanced technologies. These investments could deliver long-term economic benefits for the country, he said.
