Chapter 2 of the public-led protest in Thailand is dragging down the country’s stock. The country’s main income sources have been on a halt due to the pandemic, and the ongoing protests might cause a longer pause.
Anti-government protest ignites Thailand
Thailand’s rally blew up again. The protest has now segmented into local rallies due to the shut down of public transportation by the government. Quoted from Nikkei Asia, public from at least 16 other provinces across Thailand commenced with the protest.
Noted from Nikkei Asia, the protest rooted from public’s demand on a reformation in the monarchy. The rally has been ongoing since March, but the government has yet given an exact answer to the public’s demands.
Public’s protest grew with the government’s accusation of the protests for being harmful and violent. The incident rooting the accusation happened upon the king and queen’s visit to their homeland, Thailand. The couple’s motorcade collided with an ongoing protest, with public shouting at both of them. Despite the harmless protest, authorities charged two activists involved in the rally for trying to harm the queen.
The public’s got even more angered after the authorities harmed people with water cannon and tear gas attack on some of the protests. The authorities have also arrested numerals of protest leaders. While some have been released on a bail, some others still remain in the custody.
How Investors perceive Thailand’s current situation
Thailand has been in a slump due to a halt in its first income source: tourism department. According to Reuters, the country recorded $8.8 billion of equity outflows for the past nine-month. Ton Poh Fund founder’s, Jeep Chatikavanij argues that the protest is adding another negative sentiment to Thailand.
Thailand’s political instability and prolonged rallies are clouding investors’ decision upon investing in the country. As a result, Thailand stocks scored the weakest in Asia for this week with a 2.6% dive.
Noted from Reuters, Thailand is also currently suffering from lagging currency. This partly contributes to the country’s worst contraction in 22 years. Thailand stock market scored a 22% drop since the start of the year. While the country’s economic recovery is still far in sight, the anti-government protest might push it even further.
Read also: Thailand vs COVID-19, the Unjust Government