Templeton increases stakes in Thailand as economy recovers

Bangkok :  Templeton Asset Management has increased its investments in Thailand this year as the nation's economy recovers from recession and shrugs off the effects of deadly political protests, investor Mark Mobius said.

"Everybody thought Thailand would go down with the riots," Mobius, who oversees about $34 billion (Dh124.88 billion) as Singapore- based executive chairman of Templeton's emerging markets group, told reporters in Bangkok yesterday.

"Having lived here and having experienced the change in government in the past we have seen the improvement that is taking place."

Thailand's economy may expand as much as 8 per cent this year, the fastest pace since 1995, on surging overseas shipments and government stimulus spending, Finance Minister Korn Chatikavanij said this month.

The nation's benchmark SET Index has risen 21 per cent this year, the second-best performer after Indonesia among Asia's 10 biggest markets.

"In the last 12 months we have been increasingly investing in Thailand," Mobius said, adding that about 9 per cent of the fund's emerging market assets are invested in the country, compared with 2 per cent five years ago.

"Patience is paying off for Thailand because it is one of the best performing markets this year and last year."

Thailand's central bank increased its benchmark interest rate last month for the first time in almost two years as a rebound in exports limited the impact from protests that killed 89 people in April and May, the nation's worst political violence in almost two decades.