The decline in Thailand’s financial markets after the recent election has been the most severe in 20 years, caused by uncertainty surrounding political maneuvering and anxiety over the formation of a coalition of pro-democracy parties to form a government.
The Move Forward party, which achieved the most seats in the lower house parliamentary election, and its seven coalition partners are currently the closest to gaining enough seats to elect the next prime minister of Thailand.
Unfortunately, due to this uncertainty, there has been an outflow of funds and it has further worsened the decline in Asia’s worst-performing stock market of 2021. The Move Forward party has promised to reduce energy costs and increase wages, which has affected the industry outlook.
Investors may have to wait until August to get clarity on the new leadership and whether a coalition of pro-democracy parties can form a government. This will likely result in continued withdrawals until the situation becomes clearer.