Thai Investment Attitudes

Goals

To understand the persona and attitudes of personal investors in Thailand, as well as what types of investments they favor, and why.

Early Findings

Thai Attitudes/Behaviours towards Investing/Investments

  • Personal investment in Thailand has been affected in the last few years by changes in economic and societal structure, and also due to changes in technology.
  • Economic changes include interest rate reduction, changes in legislation on land and building tax, changes in the deposit insurance policy, and many others.
  • Changes in society include the aging of society, the single society, and the evolution of the work-life balance.
  • Finally, technological changes imply disruptive technology.
  • These changes have in part lead to early retirement and the need to have a supplemental income when doing so.

The Role of Gold in Thai Investment

  • In Thailand, gold remains a very popular choice as a low-risk investment with a constant yield.
  • It is highly valued as a commodity that does not lose value over time with a relatively low price fluctuation.
  • In Thailand, it is easy to invest in gold with over 7,000 shops to purchase it in person, but it is also available for purchase online, on mobile apps, or even on blockchain.

Traditional Connection with Gold

Types of Investments in Thailand

  • According to a 2019/2020 survey conducted on 334 Thai participants aged 20 years and older who had generated passive income from investments in various instruments, the most popular non-real estate investments were on bank savings (26.5%) and stocks (24.2%), followed by bank long-term lottery (16%), and gold (7.7%).
  • For each category of instruments surveyed, the survey found that the majority of investors in each investment type are single, highly educated and with over 10 years of professional experience.
  • This demographic is a reflection of the changes in Thai society.
  • However, it has to be noted that the majority of respondents had incomes of over 3,000 USD/month, which is very high in Thailand.
  • This might explain why they chose other investments than gold, which might be the investment of choice for another demographic.
  • A 2019 survey conducted on 350 high net worth Thais published by Julius Baer has found that recently, Thais are moving from investing in simple products such as bank deposits to mutual funds.
  • The investment portfolio allocation of high net worth individuals has been found to be 21.5% cash including bank savings, 20.4% fixed income, 19.5% stock, 15.3% funds, 7.8% insurance, and 6.7% real estate assets.

Summary of Findings

After preliminary research, we found that the types of investments chosen by Thai people vary according to their demographics. Younger individuals and individuals with higher wealth tend to invest less in gold and more in stocks and funds. However, it might be the case that gold remains the investment of choice for the majority of the population and families with medium to low income.

Research proposal:

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