From LTF to ESGX: Investor Transition Underway
When asked about the relatively slow shift from long-term equity funds (LTFs) to the new Thai ESGX funds, Pichai acknowledged that investors are still highly liquid and likely weighing the right timing for reallocation.
On the strong baht, Phichai attributed the currency’s rise to recent capital inflows, though he cautioned that much of it may be short-term investment in bonds, rather than equities, which are more sensitive to economic sentiment and structural reforms.
“Bond investments offer immediate returns and safety, unlike equities which require more confidence in Thailand’s short- and long-term economic strategy,” he explained, adding that fund allocations could shift to equities once economic conditions improve.
Boosting Industrial Investment & Labor Development
Regarding broader investment incentives, Pichai noted that foreign investors are showing increasing interest in relocating production to Thailand. The government is working to support domestic manufacturing and employment, while upgrading workforce training—with a particular focus on linking labor to research sectors.
On land use reform, the government is currently amending laws to allow long-term leases of state land for up to 99 years—returning ownership to the state at term’s end—rather than requiring investors to buy land through the BOI (Board of Investment). These efforts will be paired with enhanced access to utilities such as water and electricity.
Crypto Use for Payments Under Consideration
On the use of cryptocurrency for retail payments, Pichai clarified that the discussion focuses on enabling crypto transactions via credit cards accepted by merchants—not tied to domestic currency. This model is under consideration by the Bank of Thailand, referencing global practices in crypto-based payment systems.
