New government, political stability to draw foreign investment
Foreign investors have expressed interest in investing in Thai stocks now that the country’s political situation appears to have stablised and is moving forward, Supachoke Supabundit, president of Kiatnakin Phatra Securities, said on Thursday.
“Finally having a new PM is a positive sign for the stock market,” he said, adding that some foreign investors responded positively to the royal endorsement of the country’s 30th prime minister Srettha Thavisin on Wednesday.
“Many foreign investors have readied funds to buy Thai stocks,” he pointed out. “They are now waiting to see the new cabinet and their economic policies to determine which sectors they should invest in.”
The Stock Exchange of Thailand (SET)’s Manpong Senanarong added that in the past five years, the service industries have shown the biggest profit growth and therefore have the potential to attract foreign investors.
Industries such as tourism, transport and commerce are reporting growing profits and expansion, especially in soft-power businesses such as cinema, sports, and spas, said Manpong, who is senior executive vice president of SET’s Issuer & Listing Division.
He advised the new government to continue building infrastructure for these industries, as well as roll out measures for hosting and promoting activities to attract foreign tourists and investors.
Meanwhile, Thailand must also prepare for the move to Thailand of foreign-owned manufacturing and supply chain bases in such industries as electric vehicles and automotive parts, he added.
Manpong said areas the government must prioritise are ESG (environmental, social, and corporate governance) and sustainability, which are among the main focuses of these companies.
“Thailand’s capital market already has its own attractions. It’s up to the new government and its economic policies to further improve these attractions as well as identify new ones that will draw foreign investors,” he said.
Supachoke and Manpong were speaking at Thailand Focus 2023: The New Horizon event, being held by SET and partners at Grand Hyatt Erawan Bangkok until Friday. More than 200 international investors and 96 investment institutes are attending the event.
