Bangkok: Globlex Securities has expressed concerns over the economic pressure resulting from President Donald Trump’s 36% import tax on Thai products, especially affecting the export sector. The company hopes for a resolution in tax negotiations before the August 1st deadline. It advises investors to focus on Domestic Plays stocks to mitigate volatility and suggests prioritizing investments in the Healthcare Tourism sector, highlighting Thailand’s potential for growth in the health tourism industry.
According to Thai News Agency, Thanapisal Kuhapremkij, Chief Executive Officer of Globlex Securities Co., Ltd., has evaluated the current investment climate in Thailand, emphasizing the impact of Trump’s Reciprocal Tariff on the stock market. The 36% import tax is expected to heavily affect various export industries, including electronics, seafood, gems, automotive parts, and textiles, thereby undermining Thailand’s trade competitiveness. Entrepreneurs and investors are advised to stay informed about the ongoing negotiations to assess the potential outcomes before the tariff’s enforcement on August 1st.
The Thai stock market is currently experiencing significant volatility, with export-related stocks facing intense pressure. Consequently, Globlex Securities recommends steering clear of these stocks and instead investing in sectors with domestic revenue streams or those poised to benefit from the domestic economic recovery.
Globlex Securities identifies Healthcare Tourism as a “Safe Play” for investors, as Thailand seeks to establish itself as a Medical Hub for healthcare services, which can drive growth through wellness tourism. The current situation presents an opportunity to accumulate stocks with strong dividend yields, emphasizing companies with robust risk management and cash flow strategies.
Mr. Thanapisal acknowledges the severity of the crisis, citing the challenge of restoring investor confidence amid dwindling market liquidity. He urges relevant agencies to expedite measures to reassure both domestic and foreign investors while calling on the government to implement economic stimulus strategies to revive consumer purchasing power and stabilize the economy.