New trends make Thai saving-investment market ‘brightest in SE Asia’
Thailand's saving market is projected to grow at an exponential rate as middle-income people and the younger generation seek to increase their wealth through investment, a leading asset manager said on Monday.
The country’s saving and investment market is now the most promising in Southeast Asia, said Eastspring (Thailand) Asset Management CEO Adisorn Sermchaiwong.
Eastspring is the sixth-largest asset manager in Thailand with assets under management (AUM) of around 342 billion baht for a 7 per cent share of the market.
Adisorn was speaking as he launched the firm’s new investment products aimed at tapping the changing investment landscape.
He said more and more people were realising that simply saving money in the bank will not be sufficient for retirement given the country's lack of pension-style welfare. They would have to seek alternative methods of accumulating and securing their wealth.
However, Thailand’s stock and bond markets could not fulfil this need, he said, adding that to maximise their returns, Thais must become part of the global investor community.
“Between 2015 and 2021, the average annual return on foreign investment was as high as 11.5 per cent, compared to only 4.7 per cent on Thai stocks,” Adisorn said.
To tap that opportunity for new investors, Eastspring has merged its freshly acquired Thanachart Fund and TMB Asset Management. The firm’s new strategic focus will be global investment access with an emphasis on Asia, while providing market insights and a holistic approach with a variety of assets to invest in.
Eastspring currently offers six categories of assets: local equity, fixed income, alternatives assets (property, commodities), foreign investments, tax saving (LTF, RMF, SSF) and investment solutions.
The new strategy focuses on foreign investment and investment solutions, advising investors on how to balance their portfolios.
"Our primary responsibility now is to educate Thai people about investment and wealth management so that they can invest wisely and reap the benefits," said Eastspring's CEO. "We will collaborate with our partners, such as banks and other financial institutions, to hold monthly online seminars to educate our."
Eastspring expects the global market to remain volatile due to global uncertainty, high inflation, and geopolitical tension. However, it adds that opportunities still exist in some markets; Thai investors simply need to do more research and consult a reputable asset management firm.
Despite the global economic slowdown, Eastspring has set an AUM target of 400 billion baht for this year, Adisorn added.
