Mitihoon – UOB Thailand recently organised its 2025 Investment Outlook seminar, providing investors with insights and strategies to navigate dynamic market conditions. The event emphasissed the importance of dividend investing for consistent passive income and the construction of a resilient investment portfolio centred on core assets. These core asset strategies include multi-asset diversification and investment-grade bond funds, designed to help investors in achieving long-term financial objectives. Additionally, the seminar explored tactical investment opportunities, emphasising income-focused strategies, diversification amidst potential market volatility, and capitalising on President Trump’s pro-growth policies to seize short-term market opportunities.
The global economic outlook in 2025 will be notably shaped by the return of former President Donald Trump and the implications of his policies on both the U.S. and global economies. The anticipated inflationary effects of these policies, particularly regarding trade tariffs, are likely to have mixed impacts on economic growth. A key development to monitor will be the phased implementation of tariffs, set to begin in Q2 2025, with full implementation expected by the first half of 2026.
Thailand’s economic growth outlook remains resilient despite external challenges
Thailand’s GDP is projected to grow by 2.9 per cent in 2025, driven by substantial fiscal spending and expectations of improved consumer spending. Mr Enrico Tanuwidjaja, ASEAN Economist at Global Economics and Market Research, UOB Group, said “Government expenditure remains a critical driver of growth, with fiscal measures expected to stimulate the economy. While tourism underperformed last year, improvements in visa policies and changes in export patterns are expected to support recovery, especially in merchandise exports to regional markets, rather than the U.S. Projected growth includes 37.5 million visitors, 2 per cent in exports, and a budgetary boost of over 4.5 per cent. However, challenges such as high household debt and limited credit growth persist. The recovery in Thailand is largely driven by the services sector, which is anticipated to lead growth in 2025.”
Strategic investment recommendations for investors
During the seminar, UOB’s wealth advisory emphasised the importance of building resilient investment portfolios capable of withstanding potential volatility stemming from policy uncertainties. Investors were advised to allocate funds into high-quality, investment-grade bonds to ensure consistent income while reducing portfolio volatility. Additionally, UOB recommended adopting a multi-asset strategy to diversify risk across various asset classes, regions, and sectors.
Mr Abel Lim, Head of Wealth Management Advisory and Strategy, UOB Group, provided key recommendations for managing short-term market fluctuations. He stressed the importance of focusing on income strategies, diversifying investments to weather market volatility, and leveraging President Trump’s pro-growth policies. He said, “During periods of high market volatility, the recommended approach is to prioritise companies with long-term stability—those that are less likely to default. The three key strategies to focus on are income generation, managing volatility, and capitalising on President Trump’s policies. Emphasis should be placed on dividend-paying companies that are profitable, have strong returns on investment (ROI), and maintain low debt levels, as these companies are better positioned to endure market fluctuations. Furthermore, developed market financials are benefiting from regulatory deregulation, tax relief, and recapitalisation, which position them for higher returns despite economic uncertainties.”
Income strategies, such as investing in dividend-paying companies with steady cash flows and strong balance sheets, were highlighted as prudent approaches. Additionally, the outlook for developed market financials is positive, as bond yields remain attractive, and their asset quality continues to improve.
To mitigate potential market volatility, diversification remains key. ASEAN, for example, stands to benefit from shifts in global trade patterns and supply chain diversification, while a market-neutral approach—particularly in Asian stocks—could prove effective. Such strategies aim to generate returns regardless of market direction. Furthermore, gold continues to be a valuable asset, offering a safe haven during times of economic uncertainty.
Impact of President Trump’s Pro-Growth Policies
The financial sector is expected to see significant benefits from regulatory easing, enabling banks and financial institutions to allocate capital more effectively through business expansion, dividend payouts, and share buybacks. Corporate tax reductions are anticipated to enhance business profitability, supporting overall market growth.
Small- and mid-cap U.S. stocks are also poised to benefit from potential tax cuts. These companies, which are often more domestically focused, face less exposure to global trade tensions, offering a safer investment profile. Additionally, the current stock valuations of smaller firms present attractive opportunities for outperformance over large-cap stocks.
The technology sector could benefit from U.S. pro-growth policies that support economic expansion and innovation, particularly in areas like artificial intelligence. However, the impact on specific companies and sectors remains subject to evolving market dynamics.
Leveraging Digital Advancements in Wealth Management
Mr Gidon Jerome Kessel, Head of Deposit and Wealth Management at UOB Thailand, highlighted UOB’s commitment to integrating human expertise with cutting-edge digital tools to provide tailored services to clients. He introduced the “My Wealth Planner”, a new digital tool designed to assist clients in creating personalised financial portfolios. My Wealth Planner helps investors understand their financial situation and lays the foundation for sustainable investments. The tool processes client data to assess risk profiles and formulates investment strategies tailored to their needs, encompassing both funds and insurance. This ensures clients receive sound investment advice while tracking their financial progress effectively.
UOB’s wealth management are one of the features on the UOB TMRW app. This feature enables clients to easily buy, sell, and switch mutual funds, providing seamless access to offshore funds from leading global fund houses, including Fidelity International, Goldman Sachs Asset Management, J.P.Morgan Asset Management, PIMCO, and UOB Asset Management. This enhancement further empowers clients to manage their investments directly from their mobile devices.
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