Thailand’s asset management industry group is proposing a private trust framework that it says could draw as much as 1 trillion baht (US$27 billion) of global wealth to the Southeast Asian nation within two years.
Private trusts are widely used by high-net-worth individuals, family offices and institutional investors for cross-border asset allocation, succession planning and asset protection.
The proposal from Thailand’s Association of Investment Management Companies (AIMC) is inspired by Singapore’s success as one of Asia’s leading wealth centres, according to Pote Harinasuta, chairman of the industry group.
“The framework is to attract global wealth to Thailand and to position Thailand as a regional asset management hub,” he says in a statement on May 2.
The aim is to establish a legal structure that supports private wealth management and enhance investor confidence, targeting affluent investors seeking safe havens for capital preservation amid global uncertainty.
According to Pote, who is the chief executive officer of local investment firm One Asset Management, industry estimates suggest the initiative could unlock 1 trillion baht of foreign capital within two years if implemented effectively.
He says the framework seeks to replicate key elements of the Singapore model while tailoring them to local strengths.
“A pillar of the strategy is to introduce tax incentives comparable to those offered by Singapore,” he says.
The AIMC is proposing that foreign investors allocate at least 10% of assets to the Thai capital market in order to be eligible for tax breaks.
