Wonder

Research Outline

Prepared for Anna E. | Delivered January 19, 2021

Millennial Investing Post-Covid - Thailand

Goals

To assess the impact COVID-19 is having on local investor attitudes and behaviors to investing and investments in Thailand, especially as it pertains to millennials in the region.

Early Findings

General Insights Surrounding Thai Millennials and Investing According to the Bangkok Post, millennials currently represent more than a quarter of the population and by 2025 will make up about 50% of the total workforce. 
Some will be inheriting generational wealth, while others are independent, earning money to create their own wealth. 
Typically, millennials have an "overarching notion of investing in businesses with strong environmental, social and governance (ESG) principles, and in socially responsible investment (SRI)." This trend is expected to continue as this group feels "the returns are measured not only in financial terms but also by the way such investments contribute positively to society and the environment."
Though they represent a large portion of potential investors, "many do not have knowledge about investing -- even the basics -- which translates to them being wary of investing."
Experts estimate that about half of Thai millennials are not currently investing at all. 
Data released from DDproperty’s Thailand Consumer Sentiment Study states that while 1 in 5 millennials still love with their parents, "over half of the respondents have a monthly saving strategy in place to reach homeownership status."
The same report also states that "90% of millennials want to buy property rather than rent indicating their switched-on mentality and understanding of long term investments."
Private Investment Index As it applies to the whole population, not just millennials, monthly  Private Investment Index data from the Bank of Thailand is provided below for March through November 2020 to provide some indicators on the effects of COVID-19 on investing in the region.
November 2020 - 148.49 
October 2020 - 141.82 
September 2020 - 124.74 
August 2020 - 121.21 
July 2020 - 117.23 
June 2020 - 121.14 
May 2020 - 111.23 
April 2020 - 112.86 
March 2020 - 132.40 
Property Investing Post-COVID Foreign buyers have pulled out of potential property deals in Thailand, "COVID-19 has prompted these buyers to withdraw their purchase despite losing their deposit. The absence of the Chinese will inevitably have a significant impact on our country’s property market."
The pandemic's impact on working from home is expected be seen in the property market as well. "Looking to the long term, buyers and tenants are expected to strive for their homes to have sufficient space and within that, personal space. Working, relaxing, eating, sleeping, and even exercising in one area can be taxing on the healthiest of minds."
Additional Findings A paywalled report titled, 'Thailand For Investors: What Will The Impact of COVID-19 Be?', was located on Lexology. However, as research is limited to the use of publicly available data, no investigation of this report could be made. 
Notes on ResearchFor purposes of this project, millennials has been defined as those born between approximately 1981 and 1997 and in the age rage of 24-40.  Please be aware that not all sources may define millennials by the same terms, and as such research will attempt to provide as close to the age rage as described above as possible. 

Summary The time constraints of the discovery portion of research allowed for initial review to establish viability of continued research. As such, it is suggested that if further research is desired, that some adjustments to overall goals be made.  No data was uncovered that directly speaks to changes in investment habits of investors, specifically millennials, post-COVID.  

It is suggested, then, that an overview and outlook for the Thai investment market be provided by collecting data from experts and that investment trends in Thailand (for all generations, but highlighting millennials when/if possible) be provided.