Thailand's Deputy Finance Minister: The return of political stability is driving a surge in foreign investment, and a weaker baht may support economic competitiveness

(1) Thai Deputy Finance Minister Santitarn Sathirathai stated that with the return of political stability and policy continuity, the country—which had long been turbulent due to coups and court-ordered removal of prime ministers—is now experiencing a surge in foreign investment. (2) He said that, according to data from the Thailand Board of Investment (BOI), investment inflows in the second quarter grew by about 30%, after an increase of over 20% in the first quarter; BOI-supported projects currently account for around 30% of Thailand's total investment. (3) This shift matches some of Thailand's long-term advantages: while other economies are facing soaring prices, exchange rate volatility, and higher interest rates, Thailand's inflation remains relatively low, its external finances are robust, and its monetary policy is relatively accommodative. (4) The baht has fallen 5.3% this year, less than the Indonesian rupiah or Philippine peso; however, Sathirathai noted that the recent weakness of the baht could support Thailand's economy and competitiveness. The stock market continues to rise as well.