• Advising Thai investors to diversify their investments in both global and Asian markets
  • The hardware technology sector and other significant structural trends will help mitigate negative volatility in the second half of 2021

Aberdeen Standard Investments, a leading global fund management company, believes that increased access to vaccines will help revive the growth trend of the Asian economy in the second half of 2021 and beyond. Although the COVID-19 situation continues to disrupt economic activities, it is expected that corporate earnings will still grow strongly, driven by the hardware technology sector and other important structural trends. Various challenges continue to impact Asian markets across the region, and in Thailand, these challenges have become increasingly difficult to manage due to a recent resurgence of outbreaks.

Pruksa Iamthongthong, Senior Director of Asian Equity Investments at Aberdeen Standard Investments, stated that the company expects central banks in the Asian region to adopt flexible monetary policies during this period to lay the groundwork for economic recovery. "We believe that vaccination rates will increase across Asia next year as sufficient vaccines become available, allowing emerging markets in Asia, including Thailand, to resume economic activities and narrow the gap with developed countries," she said.

"We see several reasons to believe that Thai investors will have a positive outlook on asset investments this year. Despite the impacts of COVID-19, we expect corporate earnings to grow strongly, supported by sustained demand from the hardware technology sector, which will help mitigate negative volatility in the second half of 2021," Pruksa added.


Pruksa Iamthongthong, Senior Director of Asian Equity Investments at Aberdeen Standard Investments

Some Asian stock markets have seen significant increases in stock prices due to concerns about the trend of rising bond yields in the U.S. and their impact on asset valuations. Aberdeen continues to adopt a cautious investment approach regarding growth securities that have seen strong price increases despite low or no profits.

"Moreover, global investors still hold Asian stocks at low levels, with attractive pricing for global markets despite strong revenue growth," Pruksa added.

As a long-term investor, Aberdeen remains focused on companies with strong cash flows, reflecting trends that benefit from structural growth. Companies with good cash positions and high environmental, social, and governance (ESG) standards will be best positioned to handle short-term uncertainties.

Robert Penaloza, Country Head of Aberdeen Standard Investments in Thailand, stated, "As the world grapples with the COVID-19 pandemic and its economic impacts, investors are seeking to build more resilient and sustainable investment portfolios. At Aberdeen Standard Investments, we offer a diverse range of ESG-based strategies to Thai investors to help diversify investment risks and achieve long-term goals, whether through investments in Chinese stocks or global small-cap funds that invest in quality businesses that have shown strong growth in recent years, or through dynamic global dividend strategies aimed at monthly payouts regardless of broader market volatility. We believe that equities remain an attractive asset class for Thai investors in the future."


Robert Penaloza, Country Head of Aberdeen Standard Investments in Thailand

Most companies in Asia are forecasting good profit growth for 2021 in their latest quarterly earnings reports, and Aberdeen expects dividends to improve as the economy normalizes.

Pruksa believes that the following significant structural trends will drive the Asian stock market for the remainder of this year:

  • Seizing Opportunities: As the middle class in Thailand and Asia continues to expand, it is anticipated that consumption of high-quality goods in various sectors will grow, such as food and beverages, education, and financial services. Particularly, some small-cap consumer goods companies in Thailand present good investment opportunities.
  • Asia's Development: Urban population growth brings demand for infrastructure in Asia, enhancing opportunities for real estate developers and construction material producers in Thailand, such as cement and steel.
  • Health and Well-being: Asia has leading global companies in biotechnology and medical device technology. Aberdeen sees potential in companies involved in research, respiratory and sleep care, vaccine development, as well as pharmaceuticals and diagnostics.
  • Digital Future: Increasingly integrated technologies worldwide will drive Asian companies operating in gaming, internet, fintech, and various technology services, such as cloud infrastructure development and processing.
  • Technology Drivers: The Asia region has a technology supply chain that stands to benefit from structural growth trends in 5G, big data, and digital connectivity.
  • Environmental Friendliness: With global policymakers committed to creating a low-carbon future, companies involved in renewable energy, electric vehicles, and environmental management infrastructure are likely to have a bright future, especially in terms of grid parity (making the cost of electricity from renewable energy equal to that of conventional electricity), which could transform the industry.

In July 2021, Standard Life Aberdeen, the parent company of Aberdeen Standard Investments, rebranded under the name abrdn (pronounced Aberdeen). Aberdeen Standard Investments Thailand will be rebranded as Aberdeen in September this year, aligning with a growth strategy focused on the future and customer-centricity. The transition to a single brand from five separate brands will enhance operational efficiency, delivering better and more sustainable investment returns to clients in Thailand and globally.