Thailand Stock Economy Faces Foreign Investor Exodus
Foreign investors are leaving the Thai stock market in large numbers. Since the start of 2025, they have sold over 78 billion baht worth of shares. This marks one of the worst years for the Stock Exchange of Thailand (SET) in recent memory. The outflow is driven by weak economic data, political instability, and Thailand’s failure to attract investment in modern sectors.
Thailand’s economy is no longer competitive in the region. While ASEAN neighbours show signs of recovery, Thailand’s GDP growth remains sluggish. Corporate earnings continue to disappoint. This has forced investors to look elsewhere. Markets in South Korea, Taiwan, and India are attracting more foreign capital. In contrast, Thailand lags behind.
One major issue is Thailand’s economic structure. The country remains heavily reliant on agriculture, tourism, and basic manufacturing. Investors are now chasing “new economy” sectors like artificial intelligence, robotics, and green energy. Thailand lacks a strong presence in these areas. As a result, foreign funds see little potential for long-term growth.
Analysts point to another concern: the lack of policy direction. The government has yet to deliver a clear and confident roadmap. Delays in the national budget and weak coalition unity have created further uncertainty. Investors are cautious. They need clarity before they can commit long-term capital.
Political tensions have made things worse. A leaked audio clip involving the Thai Prime Minister and Cambodia caused a sharp selloff. Foreign investors sold over one billion baht in a single day following the incident. Such events highlight the risk premium tied to Thai assets. Investors are unwilling to take chances in politically volatile environments.
So far in 2025, foreign investors have sold heavily in nearly every month. January saw net sales of over 11 billion baht. The selloff continued in February and worsened in March. May saw another major pullout. June also ended with negative foreign net flows. The pattern is clear. Funds are pulling out consistently, not just reacting to temporary shocks.
No drastic drops in foreign ownership of Thai stock
Despite this, the total foreign ownership of Thai stocks has not dropped drastically. This suggests that some of the selloff is due to profit-taking rather than a complete loss of faith. However, the damage to investor confidence remains. Rebuilding that trust will not be easy.
The government has responded with a few measures. These include tax breaks for long-term mutual funds and more power for the Securities and Exchange Commission to act against market manipulation. But these efforts are not enough. What investors want is stability, reform, and a forward-looking economic plan.
Thailand must modernize its economy. The country needs to move beyond traditional sectors and invest in future industries. Education, digital infrastructure, and innovation must become national priorities. Without this shift, Thailand risks falling further behind.
The government must also take a stronger stand on political stability. Investors need to see unity in policymaking. They want clear timelines and decisive action. Delays and internal conflicts send the wrong signals.
In the short term, the outlook remains weak. Capital is unlikely to return unless there is a major policy shift or external catalyst. However, if the government can stabilise politics and present a bold economic vision, there is a chance to reverse the trend.
The Thai stock market is not beyond saving. It still offers value, especially in sectors like banking, energy, and logistics. But without reform, these advantages will not be enough to stop the outflow of capital.
In conclusion, foreign investors have sent a clear message. They are no longer waiting for promises. They demand swift results. If Thailand wants their money back, it must first earn back their trust. That surely means action, not just sweet words and press statements.
