INTERNEWSTIMES.COM – Thailand’s Social Security Fund, facing a growing burden from an aging population and a history of underperformance, is embarking on a bold new global investment strategy. The fund, responsible for supporting healthcare, unemployment benefits, and pensions for 25 million workers, has seen its returns lag behind its potential in recent years. To address this challenge and ensure its long-term viability, the fund will invest US$11.6 billion in a diversified portfolio of global assets.
The fund’s current investment strategy, heavily concentrated in Thai assets with a focus on low-risk investments, has been deemed unsustainable in the long term. Experts warn that the fund could face a deficit by 2045 if significant changes are not made. The recently elected investment board, with a more reformist agenda, has approved a new framework that will increase the allocation to higher-risk investments, including a significant investment in global private assets.
This shift towards a more global and diversified investment strategy aims to generate higher returns to meet the growing demands of a rapidly aging population. The fund’s decision to expand its investment horizons reflects a growing recognition of the need for long-term good governance and transparency in managing public funds. The new strategy is expected to enhance the fund’s ability to meet its obligations to its beneficiaries while ensuring its financial sustainability for generations to come. (Red)
