Citi insists investor case for Thailand remains solid

Thailand’s economic doldrums will surely be at the top of the policy agenda for the new government, given lagging growth, weak consumer confidence and rising fears that the strong baht will hurt the country’s key export and tourism sectors.

- CHIRATAS NIVATPUMIN

However, Sue Lee, managing director and head of markets for Asia South at Citi, argues such pessimism might be shortsighted.

“The investment thesis for Thailand remains very solid in terms of attractiveness for manufacturing, given the existing infrastructure and the country's strategic geopolitical location,” she told the Bangkok Post.

And while uncertainties over US trade policies have certainly rattled business sentiment for much of the year, the announcement on Aug 1 by the White House that US tariff rates for Thai goods would be cut to 19%, in line with Indonesia, the Philippines and Malaysia, has levelled the playing field, Ms Lee said.

“In terms of tariff rates for Southeast Asian countries — they are mostly aligned. There’s no disadvantage in Thailand,” she said.

To the contrary, for foreign investors seeking tactical opportunities in emerging markets, Thailand's dovish bias and strong baht are themes that “cannot be ignored’, said Ms Lee.