Bangkok: The National Economic and Social Development Board (NESDB) president has confirmed that Thailand possesses a robust reserve fund. The NESDB chairman has also suggested the creation of a 3 trillion baht “Sovereign Wealth Fund” to boost returns and raise funds.

According to Thai News Agency, Dr. Suphawit Saicheua, Chairman of the NESDB, addressed the “Thailand Must Survive, Save Thailand” seminar, highlighting that Thailand’s foreign reserves are exceptionally high, totaling 9 trillion baht. He suggested that a portion of these funds be utilized, as many other nations have done. For instance, Singapore established the Government of Singapore Investment Corporation (GIC), its sovereign wealth fund, 50 years ago. Today, the GIC manages assets worth US$800 billion, with an average annual return of 5%, contributing 20% of its revenue annually to state income.

Dr. Suphawit recommends withdrawing US$100 billion, approximately 3 trillion baht, from excess reserves to form a Sovereign Wealth Fund immediately. The International Monetary Fund (IMF) has previously evaluated Thailand’s reserves using the Reserve Adequacy Metric (AR), which considers factors like exports, money supply, short-term foreign debt, and other debt obligations. The IMF’s assessment indicated that Thailand’s reserves stood at 239.6% of the required AR, exceeding the necessary reserves by 139%. As a result, Dr. Suphawit views the establishment of a fund with these excess reserves as a chance to alleviate economic limitations and potentially foster sustainable national income growth.