Thai official points to surging investment as stability returns
Thailand has relatively low inflation, strong external finances and accommodative monetary policy.
Thailand, once plagued by political turmoil and coups, is attracting significant foreign investment due to a resurgence in stability and political continuity, according to Vice-Finance Minister Santitarn Sathirathai. Inward investment rose by about 30% in the second quarter after increasing by over 20% in the first, with BOI-backed projects now accounting for roughly 30% of total investment in Thailand.
The shift in perception of Thailand as a stable economy has been confirmed by conversations with multinational companies, investors, and credit-rating firms over the past four months. The re-election of conservative Prime Minister Anutin Charnvirakul in February has bolstered investor confidence in the government's direction and execution ability.
Meanwhile, global trade tensions, the Iran War, and the US-China rivalry have prompted companies to diversify supply chains, favoring stable economies like Thailand. Despite recent currency weakening, Thailand's macro stability and low inflation make it an attractive destination for investment. The government aims to increase total investment to 30% of GDP from the current 22-23%, targeting sectors like AI, health, clean energy, and tourism.
However, turning renewed attention into actual investment and economic growth remains a challenge, as Thailand's growth has traditionally lagged behind its neighbors like Vietnam.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
