The Thai government has announced plans to adjust its investment strategy for the Social Security Fund amid challenging market conditions. The fund, which manages assets totaling 8;2,657,245 million baht, is pivoting toward high-risk assets to improve returns and stabilize future growth.
According to reports, as of December 31, 2024, the Social Security Fund allocated 71.58% of its assets (8;1,902,066 million baht) to low-risk investments. The remaining 28.42% (8;755,179 million baht) is invested in higher-risk assets, which include both Thai and foreign stocks, as well as real estate investment trusts (REITs). Despite the significant investments, the fund has struggled due to conditions within the Thai stock market, which has faced bearish trends for over three years.
The breakdown of the investment reveals 67.74% of the total assets (8;1,800,064 million baht) are tied to domestic investments, whereas 32.26% (8;857,181 million baht) is allocated to foreign assets. This concentration has largely been within large-cap firms, where the fund holds shares in nearly 100 Thai companies, totaling around 8;200,000 million baht. Unfortunately, the performance of these stocks has been less than stellar; reports indicate 13 out of the 15 companies have posted negative returns year-to-date, leading to more than 8;8,900 million baht lost.
The President of the Social Security Office expressed concerns about the threat of the fund reaching “Set Zero,” meaning any incoming money would be entirely offset by outgoing payments. He emphasized the need for strategic adjustments to avert this scenario. The proposed changes include shifting the investment strategy between 2025 and 2027, increasing allocations to higher-risk assets from 28.42% to 60%, thereby reducing the allocation to stable assets to 40%. This shift aims to target more lucrative markets, such as stocks from the United States, Europe, and Japan, hoping to revitalize the fund’s overall performance.
Separately, Secretary-General of the Prime Minister’s Office, Seksakon Watthanachan, highlighted another initiative aimed at supporting citizens at risk of housing instability. On March 9, 2025, the Thai government announced the success of the “Baan Puea Kon Thai” project, which enables eligible citizens to secure loans from the Government Savings Bank (ThOS).
Since the registration began mid-January, around 350,000 applicants have registered for the program. Among them, 140,000 individuals have passed preliminary qualifications and are now eligible for loan assistance. The registration for this phase of the program will close around mid-March, with subsequent plans to present the total figure of registered citizens to the Cabinet later this month. This phase aims not only to assist those needing financial aid but also to streamline the efficiency of how funds are allocated for housing projects.
To bolster this effort, the Board of the State Railway of Thailand approved developments on four key areas to facilitate under the housing initiative. These locations include high-demand urban territories, such as:
- Km.11 near Central Ladprao, ideal for connecting to easy public transit routes, sitting just 2.5 kilometers from the central station and 500 meters from the MRT Phahonyothin station.
- Sirirat, opposite the Bon Marche market site. This area, spanning approximately 23 Rai (about 9 acres), is approximately 800 meters from the red and pink railway lines.
- Chiang Rak, Pathum Thani, located 4.4 kilometers from the Chiang Rak train station and close to significant educational institutions.
- Chiang Mai, situated near the Chiang Mai railway station and surrounded by major educational facilities, including Mahavidayalai Chiang Mai and Prince Royal’s College, within close driving distance from the superhighway.
This multi-pronged effort by the government marks significant progress on both fronts addressing social security fund management and housing stability for vulnerable groups. With awareness of lasting economic difficulties, these adjustments aim at creating avenues for improved financial outcomes and support to stimulate growth for those facing housing challenges.