Thai Government Loses Investor Confidence in Market
Thailand’s bold promises of economic revival now ring hollow as the country’s stock market continues to slide. The current administration, once full of confidence and vision, now appears adrift. Despite launching the US$4.5 billion Vayupak Fund seven months ago, the government has failed to stop the bleeding.
The SET Index has dropped over 16% in 2025 alone. It now trades at its lowest level since November 2020. That period marked the height of the COVID-19 pandemic, when global markets faced chaos and uncertainty. Today, with the world largely recovered, Thailand’s decline raises more serious questions. Among 92 global benchmarks tracked by Bloomberg, Thailand ranks as the worst performer this year. Foreign investors have withdrawn US$4.2 billion over the past 12 months—the highest outflow in Southeast Asia.
The root cause lies in fading trust. Investors no longer believe the government can move the economy beyond tourism. Household debt remains dangerously high. Corporate scandals shake market confidence. Political uncertainty clouds the future. Overall, every campaign promise now looks like an illusion.
When the administration took office, it raised hopes for reform, growth, and foreign investment. Yet it now offers no clear roadmap. The Vayupak Fund, intended to boost local firms and attract capital, has failed to lift market confidence. Instead of bold reform, investors see hesitation and confusion.
Narongsak Plodmechai, CEO of SCB Asset Management, summed up the dilemma. “Equities are cheap, but sentiment is too weak. People won’t invest in the market without a clearer outlook,” he said. He urged the government to act urgently, not just talk about action.
Even global banks had bet on a Thai turnaround. When Vayupak launched in August, Goldman Sachs upgraded Thai stocks. Officials hoped the fund would trigger a rally. But poor earnings and ongoing political bickering quickly derailed optimism.
Thailand’s economic future now hangs in the balance. Without bold reforms, transparency, and real economic leadership, the country will continue to fall behind. Promises won elections. Results, however, build markets—and those remain missing.
