Thailand’s Government Pension Fund (GPF) is conducting a study on its strategic asset allocation strategy to identify characteristics of assets that can be resilient to risks over the next three years, Songpol Chevapanyaroj, secretary-general of the pension fund for civil servants, says in an interview with the Bangkok Post.

The study is expected to be completed in the fourth quarter.

“The difficulty in investment allocation is you cannot fully rely on either domestic or foreign investments,” Songpol is quoted as saying in the interview published on June 17. “The world is moving towards deglobalisation, regionalisation or localisation, resulting in the movement of capital, returns, and bases back to a more regional scale.”

He also expressed optimism about Thailand’s economic outlook.

“The Thai service sector is gradually improving, while the manufacturing, agricultural and export segments are also rebounding, which means the outlook for next year is positive,” he says.

Thailand’s economy slowed to 1.9% last year from 2.5% 2022. The World Bank recently cut its 2024 growth forecast for the Southeast Asian nation to 2.4% from 2.8% because of weaker exports.

The GPF manages 1.3 trillion baht (US$35.35 billion) of assets for around 1.2 million members.

Spokespersons for the pension fund did not immediately respond to questions from Asia Asset Management.

Read more @asiaasset