Category: The Bangkok Post

US President Donald Trump lambasted the United Nations on opening day for its failure to stop global crises in the midst of major regional wars, humanitarian disasters, looming security threats, never mind costly bureaucratic waste. But as the leader of the most prominent and founding UN member state, he then added that the world organisation isn’t living up to its potential, and scathingly challenged, “What’s the purpose of the United Nations?” The old rebuke, “You can do better!” Sometimes it works.

The 80th General Assembly, which was supposed to originally be a celebration of the UN’s founding in San Francisco in 1945, turned out to be a gloomy and plaintive session as most of us sadly expected. Founded from the ruins of the Second World War, the new multinational organisation would offer the brave new world a future of peace and security. Then postwar reality intervened.

Key crises confront the UN and the global community.

Ukraine’s conflict, the largest war in Europe since World War II, devastates a central European country and, as importantly, imperils neighbouring states. Thus, beyond millions of refugees and massive human carnage, the war is spilling over into neighbouring Nato countries.

Ukraine’s President Volodymyr Zelensky, in a powerful address to the Assembly, stated bluntly; Ukraine has no security guarantees, except friends and weapons”. What can the UN really do, he asked. He rhetorically cited, “What can Sudan or Somalia or Palestine or any other people living through war really expect from the UN or the global system?” He added, “For decades, just statements and statements.”

“Weapons decide who survives,” he stated bluntly. Mr Zelensky’s address was assertive, confident and combative. He earned the right.

Peace negotiations are a process; often slow, stop/start, jolt and then movement. Ukraine’s long-awaited ceasefire is yet to happen. Russia’s war slogs on.

Secretary General Antonio Guterres commended the efforts by the United States and others seeking to facilitate diplomatic solutions to the conflict. Nevertheless, progress on achieving a ceasefire and a lasting peace settlement remains “painfully slow”. He added, “We cannot afford to lose the current diplomatic momentum, fragile as it may be.”

The perennial Palestine debate continued to be energised by the ongoing fighting and Gaza’s humanitarian tragedy. As promised, key Western powers recognised the State of Palestine; France, Britain, Canada and Portugal, among others, made the diplomatic gesture. Palestine’s President Mahmoud Abbas spoke by video-link to the Assembly, thanking the Europeans and at the same time condemning the horrific Hamas terror attacks on Israel on 7 Oct 2023. Hamas “will have no role in governing”, he promised.

When Israeli Prime Minister Benjamin Netanyahu spoke defiantly before the General Assembly, he was publicly insulted by a crass walkout of Arab and Muslim diplomats who left the hall to the cheers of many remaining delegations. Mr Netanyahu responded, reminding delegates of Israel’s stand and why he opposes the Two-State solution. He intoned, “The Palestinians, they don’t believe in this solution. They never have. They don’t want a state next to Israel. They want a Palestinian state instead of Israel.”

United Arab Emirates Foreign Minister Abdullah bin Zayed Al Nahyan underscored the necessity for a Gaza ceasefire and rejected any potential Israeli annexation of Palestinian territories during a meeting with Mr Netanyahu in New York.

Then came the diplomatic breakthrough in Washington. The Trump administration, working in overdrive with both Israel and Arab states, outlined a 21-point deal to stop the fighting, gain the release of the Israeli hostages, and demilitarise and rebuild Gaza under international auspices. Though Hamas has yet to accept, it’s under strong pressure from the Arab states and the threat of renewed Israeli military operations. European countries hailed Donald Trump’s plan to end the Gaza war.

What may be a major win for Mideast peace reflects closed-door diplomacy and some sideline discussions at the UN Assembly. Earlier, during a meeting with the Secretary General, Mr Trump stressed, ” I think the potential of the United Nations is incredible, really incredible. So, I’m behind it. I may disagree with it sometimes, but I am so behind it because I think the potential for peace with this institution is so great.” Within a week, these sentiments were proven right.

The government’s revenue collection for the first 11 months of fiscal 2025 fell short of its target by 34.1 billion baht due to lower collections than projected from auto excise tax, corporate income tax, and value-added tax (VAT) on imported goods.

According to the Finance Ministry’s report, government revenue collection from October 2024 to August 2025 totalled 2.50 trillion baht, which was 46.8 billion baht or 1.9% higher than the same period the previous year, but still 1.3% below the target.

The shortfall was mainly attributed to weaker auto excise tax collections as the government offered tax incentives to promote the use of electric vehicles, while tax payments from the purchase of internal combustion engine vehicles were less than expected.

In addition, corporate income tax and VAT collected from imported goods were below target due to increased use of free-zone privileges and changing economic conditions.

However, revenue collected by other government agencies and remittances from state-owned enterprises exceeded projections.

Government revenues come from five main sources: the three tax-collecting departments, remittances from state enterprises, and contributions from other agencies such as the Treasury Department.

For the first 11 months of this fiscal year, all three tax departments collected amounts below their targets.

The Revenue Department collected 2.01 trillion baht, down 1.3% from its target, while the Excise Department amassed 489 billion, 11.8% less than its target, and the Customs Department collected 104 billion, a dip of 7.1% from its goal.

State-owned enterprises remitted 169 billion baht to the government for the period, 13.9% above target, while other government agencies contributed 203 billion baht, 26.8% above target.

Government revenue before tax refunds and VAT allocations to local administrative organisations, as required under the Fiscal Decentralization Act, amounted to 2.98 trillion baht. After these deductions, the government’s net revenue was 2.50 trillion baht.

A source at the Finance Ministry who requested anonymity said government revenue as a percentage of GDP has been steadily declining. In fiscal 2015, the percentage was 16.1%, declining to a projected 15% for fiscal 2025.

For fiscal 2026, the estimate is 14.6%, underscoring the need for fiscal reforms of both revenue and expenditure to ensure long-term fiscal sustainability, the source said.

Spotify has deleted more than 75 million songs generated by artificial intelligence (AI) in the past 12 months, as the music streaming giant moves to tighten control over synthetic content that it says is flooding the platform and threatening artists’ income.

The company confirmed it will introduce new measures to regulate AI-generated music, following reports that automated uploads have reached unprecedented levels. Rival platform Deezer recently disclosed that around 28% of daily uploads, equivalent to about 30,000 songs per day, were created with AI tools.

Spotify said the surge in synthetic music had forced the firm to act, with concerns that the overwhelming volume of AI tracks could siphon off revenue from human musicians. The company unveiled three key steps aimed at restoring balance.

First, Spotify will strengthen checks to prevent AI-generated vocals from impersonating real artists or producing misleading content.

Second, it will improve filtering systems to ensure revenue shares do not go to AI-made tracks, directing income instead to genuine performers.

Third, the platform will introduce AI labels on songs, giving listeners transparency over which tracks were created or partially composed with AI.

Despite the crackdown, Spotify stressed that it remains supportive of AI as a creative tool when used responsibly. The company said content will continue to be treated equally across the platform, provided it is not misused to deceive audiences or undermine artists’ livelihoods.

A section of Charoen Krung Road near the Electricity Authority in Bangkok suddenly subsided on Wednesday morning and the road has been partially closed to traffic.

The road surface collapsed around 10am on Wednesday.

A video posted online shows a large hole in the road surface, raising concerns about safety and disruption of traffic flow in the busy area. The collapsed section is several metres long.

Rescue teams and other agencies rushed to the scene to evaluate the damage, begin traffic control measures and prevent further accidents.

The cause of the collapse was still being investigated.

Motorists are advised to avoid the area if possible and use alternative routes until repairs are completed and the road fully reopened.

The incident follows the recent major sinkhole on Samsen Road outside Vajira Hospital.

Several provinces in the upper part of Thailand are taking a battering from the remains of tropical storm Bualoi, as floods have devastated vast residential areas, crippled infrastructure and inundated farmland close to harvest time.

In Loei in the Northeast, flash floods have caused widespread damage in four districts, affecting 221 households, two roads and a school. The Department of Disaster Prevention and Mitigation said heavy downpours on Tuesday worsened the situation.

Wang Saphung district was the most severely affected. Floodwaters inundated several roads, leaving small vehicles unable to pass, said Pol Lt Col Khunthat Veerasakdikul, acting chief of the Loei Disaster Prevention and Mitigation Office, said that.

In tambon Nong Ngiew, 198 households were flooded, while 11 homes were damaged in tambon Khao Luang. In Ban Ang of tambon Phu Ho, Phu Luang district, power poles collapsed and agricultural roads were destroyed.

In Muang district, the Nabon-Kang Pla road was washed away. In Phu Rua district, flooding in tambon Tha Sala affected 12 households. Meanwhile, in tambon Loei Wang of Phu Luang district, Ban Loei Tat Phatthana School was inundated.

Authorities have urged residents to remain on alert for flash floods, overflowing rivers and landslides, especially those living near rivers, canals and foothills. Local officials and rescue foundations have been mobilised to assist residents and assess damages. Rapid-response teams have been deployed to provide aid around the clock.

In Uttaradit in the North, flooding has affected several districts after the spillway at the Khlong Tron reservoir overflowed, said Rawee Lekuthai, a Pheu Thai Party MP for the province.

Three districts – Thong Saen Khan (two sub-districts, eight villages), Nam Pat (two sub-districts, five villages), and Tha Pla (one sub-district, five villages) – are already underwater.

The main economic zone of Thong Saen Khan was severely affected, with floodwaters reaching 1.5 to 2 metres. Many households, vehicles and farm equipment were submerged. Some residents, trapped by the sudden floods, had to climb onto rooftops to await rescue.

In Phrae, heavy overnight rains caused flash floods in tambon Pa Maet of Muang district. Runoff from Pha Kham and Khamin creeks swamped agricultural land and homes in Ban Maneewan and Ban Ton Ha.

Local officials rushed to help residents move belongings to higher ground. Pa Maet municipality has distributed food, drinking water and essential supplies.

Rescue units from the Prasat Boonsathan Foundation in nearby Phitsanulok province continued evacuations in tambon Nam Ang of Tron district in Uttaradit. Flash floods intensified overnight, leaving residents stranded.

Using flat-bottom boats, teams evacuated children, elderly residents and patients to safety despite fast-moving waters. Some residents were forced to wait on rooftops until rescuers arrived.

In Chai Nat, downstream from the Chao Phraya barrage in Sapphaya district, rising water levels have forced at least 15 families to abandon their homes and build makeshift shelters along rural road 3018. Many roads are now reduced to a single lane as evacuees continue moving to higher ground.

22 provinces affected in total

All told, floods caused by heavy rain and overflowing waterways were affecting communities in 22 provinces, mostly in the Central Plains and Northeast, disaster mitigation officials said on Wednesday. They are:

Mae Hong Son (Mae Sariang and Sop Moei districts), Phitsanulok (Chat Trakan district) and Uttaradit (Thong Saen Khan, Nam Pat and Tha Pla) in the North.

Loei (Wang Saphung, Phu Rua, Phu Luang and Muang districts), Nong Bua Lam Phu (Non Sang district), Khon Kaen (Nam Phong district), Maha Sarakham (Phayakhaphum Phisai district), Surin (Sangkha district) and Nakhon Ratchasima (Khong district) in the Northeast.

Prachin Buri (Nadi and Prachantakham districts) in the East.

Flood levels were stable in Prachin Buri and were rising in Uttaradit. They were receding in eight other provinces.

Meanwhile, waterways overflowed in 13 provinces and affected 274,979 people. Four provinces in the North were affected:

Phitsanulok (Wang Thong and Bang Rakam districts) with declining flood levels.

Phetchabun (Lom Sak, Lom Kao, Muang, Nong Phai, Bung Sam Phan, Sri Thep and Khao Khor districts) with stable flood levels.

Phichit (Sam Ngam, Pho Thale, Pho Prathap Chang, Bung Narang, Bang Mun Nak, Thap Khlor, Muang, Khong Charoen and Sak Lek districts) with stable flood levels.

Nakhon Sawan (Chum Saeng, Muang, Phai Salee, Phayuha Khiri and Krok Phra districts) with stable flood levels.

Eight affected provinces are in the Central Plains:

Uthai Thani (Muang district) with stable flood levels.

Chai Nat (Sapphaya district) with stable flood levels.

Sing Buri (In Buri, Phrom Buri and Muang districts) with rising flood levels.

Ang Thong (Pa Mok, Wiset Chaichan, Chai Yo and Muang districts) with stable flood levels.

Suphan Buri (Muang, Bang Pla Ma, Song Phi Nong, Don Chedi, Doembang Nangbuat, U Thong, Nong Yasai, Sam Chuk and Dan Chang districts) with stable flood levels.

Ayutthaya (Sena, Phak Hai, Bang Ban, Bang Pa-In, Phra Nakhon Sri Ayutthaya, Maha Rat, Bang Pahan, Ban Phraek, Tha Rua and Nakhon Luang districts) with stable flood levels.

Pathum Thani (Sam Khok and Muang districts) with declining flood water.

Nakhon Pathom (Bang Len, Muang, Sam Phran, Don Tum, Nakhon Chaisi, Kamphaeng Saen and Buddha Monthon districts) with stable flood levels.

The eastern province of Chachoengsao also had overflowing waterways in Bang Nam Prieo district, but flood levels were receding.

SET-listed contractor Stecon Group has diversified into property development, targeting an initial return of at least 15%, starting with a 14-billion-baht joint venture condo project with SET-listed residential developer Noble Development.

Pakpoom Srichamni, group chief executive and president of Stecon, said the move marked the company’s first venture into real estate development and its fourth investment this year.

“After nearly 50 years in construction, we recognised that relying solely on contracting constrained our growth potential,” he said. “To ensure sustainable expansion, we diversified into power, logistics, transport, startups, new technologies, and now property.”

By the fourth quarter, it plans to sign two joint-venture deals with foreign partners to develop data centres on two sites: its own plot on Bang Na-Trat Road at KM 4.5, and on an investor’s land plot in Chachoengsao’s Bang Pakong district.

Stecon, which posted 30.3 billion baht in revenue last year, almost entirely from construction, has earmarked 2-3 billion baht annually for non-construction investments, aiming for those businesses to generate profits on par with construction by 2030.

The firm notified the Stock Exchange of Thailand on Tuesday that its subsidiary, STECX Ventures Co, acquired a 50% stake in Vertical Rama 9 Alliance 1 Co, a Noble subsidiary developing the Nue Epic Asok-Rama 9 condo project, for 610 million baht.

The project, which recently began piling work, is located on a 15-rai plot on Rama IX Road. It comprises four high-rise buildings with a total of 3,116 units worth 14 billion baht.

Some 60% of the units valued at 8.3 billion baht have been sold. Stecon will handle construction under a 4.4-billion-baht contract, starting in January 2026 and scheduled for completion by the end of 2028.

“We aim for a minimum initial return of 15% from property investments,” said Ekachai Nitasanajarukul, chief strategy and new business officer at Stecon.

“There is no fixed formula for property investment decisions. It depends on the target customer group, price range, and market conditions. What matters most is having a clear marketing strategy,” he said.

Thongchai Busrapan, co-chief executive of Noble, said the sale of its stake in the project is part of an asset-light strategy, enabling the company to reinvest in new developments given the project’s significant value.

“This type of deal is not new. We previously sold a condo project that was still under construction with some units remaining for sale to another developer,” he said. “Sometimes divestment generates lower returns, but it avoids waiting four to five years for construction to be completed.”

The 610-million-baht proceeds from the recent sale of its stake will be booked in the third quarter of 2025 and are expected to help reduce Noble’s debt-to-equity ratio from 2.2 times at the end of the second quarter to below 2 times by year-end.

Noble plans to launch three new condo projects worth a combined 10 billion baht in 2026, with discussions ongoing with Stecon on potential joint-venture participation.

SINKHOLE REPAIR

Regarding the huge sinkhole on Samsen Road last Thursday, caused by construction of the MRT Purple Line (Tao Poon-Rat Burana extension), Stecon’s chief executive said the exact cause remained unclear.

“Preliminary assessment shows the impact is not severe as the damage occurred at the tunnel-to-station junction over a short distance. Our plan is to fill the area, remove the damaged section, and rebuild the affected tunnel,” said Mr Pakpoom.

He said the project has about 30 months remaining on the company’s contract, and Stecon estimates repairs will take less than a year, allowing the joint venture to complete the project on schedule, with repair costs expected to be covered by insurance.

The venture is 55% held by Ch. Karnchang Plc (CK) and 45% by Stecon, with tasks allocated according to expertise — CK handles tunnelling, while Stecon focuses on station construction and related building equipment.

“Under the joint venture, we share responsibility for all work, regardless of which partner leads a specific task,” said Mr Pakpoom.

Thai Beverage (ThaiBev), the Singapore-listed food and beverage company, plans to invest around 9 billion baht in fiscal 2026.

ThaiBev’s 2026 fiscal year runs from Oct 1, 2025 to Sept 30, 2026.

A total of 4 billion baht is for its non-alcoholic beverage business, 2 billion for its spirits business, 2 billion for its beer business, and 1 billion for its food business.

Thapana Sirivadhanabhakdi, group chief executive, said the global and regional economies are experiencing slower growth and trade policy uncertainty.

Changes in US policy have created a negative impact on trade in Asia-Pacific and Southeast Asia, he said.

Regarding politics, Mr Thapana said the Thai government’s growing stability is lifting confidence, driven by its economic team.

“There are positive signs from October as the new government emphasises improving the economy,” he said.

Despite the uncertain trade outlook, there is a clearer direction in multilateral trade negotiations, said Mr Thapana.

The company is continuing to strengthen its business foundations and implement its “Passion 2030” roadmap that comprises two strategic pillars: “Reach Competitively” and “Digital for Growth”.

The first pillar focuses on ensuring complete product delivery coverage across all channels, with seamless integration, high service quality, and cost competitiveness.

The second segment involves leveraging digital technology to enhance its growth potential by improving efficiency, effectiveness and insights, while increasing connectivity with its consumers and business partners to ensure responsiveness to their evolving needs.

Sopon Racharaksa, executive vice-president and chief of the spirits product group, said the company encountered headwinds from challenges in the business environment at home and abroad.

The company plans to allocate 2 billion baht for its spirits product group, with 1 billion in reserve for international investments, such as expanding production capacity in New Zealand and increasing warehouse capacity in the UK.

For the beer business, the company plans to invest 2 billion baht in fiscal 2026, most of which will be allocated to a new plant in Cambodia, said Michael Chye Hin Fah, chief of the beer product group.

Located in Kandal province, roughly 50 kilometres from Phnom Penh, the new plant has a production capacity of 50 million litres per year in the first phase.

The plant is under construction and is expected to open in the next few months, according to ThaiBev.

Kosit Suksingha, president and group chief operating officer for Thailand, said the company is set to invest 4 billion baht in the non-alcoholic beverage segment.

The majority of the budget will be allocated to its projects abroad, he said, including a dairy cattle farm and a dairy production facility in Malaysia, as well as a non-alcoholic beverage production site in Cambodia.

Mr Kosit said the project in Malaysia aligns with the company’s strategy to tap into the growing halal market, while the facility in Cambodia will enable the company to produce and distribute products more effectively.

Some 700-800 million baht of investment in Thailand will be directed towards upgrading existing production lines and reforming its beverage packaging, he said.

Non-alcoholic sales are projected to grow by double digits this year, said Mr Kosit. This segment contributes 5% of the company’s total sales.

Paisarn Aowsathaporn, first vice-president and chief of food business for Thailand, said the company plans to invest 1 billion baht in the food business in 2026.

The investment is focused on roughly 45 additional KFC outlets. ThaiBev also wants to refresh its Oishi Buffet and Oishi Ramen restaurants, following this year’s rebranding of Shabushi, aimed to attract both Gen Z and Gen X consumers, he said.

The company is promoting the restaurants under Food of Asia, its food business subsidiary, at One Bangkok to serve employees in the buildings, which is expected to tally 10,000 by the end of this year.

ThaiBev also launched the Sook Delivery application to provide vertical delivery options for office building residents.

Mr Paisarn said he expects the food business to grow by 9% per year from 2026-2030.

Rukchanok Srinork, People’s Party (PP) MP for Bangkok, called on newly appointed Labour Minister Trinuch Thienthong to urgently address lingering issues within the Social Security Office (SSO), including the controversial purchase of the SKYY9 building.

Speaking during the parliamentary debate on the government’s policy statement, Ms Rukchanok urged the labour minister to expedite an investigation into the SSO’s purchase of SKYY9 at an overpriced rate, demanding that those responsible, whether ministers or senior officials, be held accountable within three months.

Opposition MP Rukchanok also pointed out that several ministers in the current government had links to the SKYY9 purchase, including Natural Resources and Environment Minister Suchart Chomklin, Public Health Minister and former building owner Pattana Prompha and Transport Minister Phiphat Ratchakitprakarn, who was the former labour minister, as well as Prime Minister Anutin Charnvirakul, who formed the probe committee to investigate the purchase of the building.

She further raised concerns about ongoing efforts to derail the Social Security Board election by amending regulations within the SSO, which would exclude employee representatives.

Ms Rukchanok also questioned whether the election would still take place in February 2026.

She added that proposals to change the system to an internal selection process were raised by a Senate committee member who had previously lost the Social Security Board election.

Sri Trang Gloves (Thailand) Public Company Limited (STGT) welcomed ambassadors and diplomatic representatives from 21 countries on an official visit to its Anvar Branch factory in Songkhla and Sri Trang Group’s rubber plantations, underscoring the strength of Thailand’s rubber glove industry and the promise of the southern border provinces.

The delegation included envoys from Australia, Austria, Belgium, Canada, Denmark, Finland, France, Greece, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Spain, Sweden and Switzerland. They were joined by officials from the National Security Council, the Ministry of Foreign Affairs, Songkhla authorities and members of the media. The visit formed part of a project to enhance international understanding and cooperation, jointly organised by the National Security Council and Ministry of Foreign Affairs.

STGT, one of the world’s largest producers of natural rubber and nitrile gloves, operates 14 manufacturing facilities across southern Thailand. The tour highlighted the company’s fully integrated supply chain, traceability systems and Environmental, Social and Governance (ESG) initiatives under the theme ‘Clean World Clean Gloves.’ Visitors also observed glove production driven by innovation and AI, alongside natural rubber tapping demonstrations.

Mr Veerasith Sinchareonkul, CEO of Sri Trang Group, and Ms Jarinya Jirojkul, CEO of STGT, led the welcome. Mr Veerasith said the occasion was both an honour and an opportunity to showcase Thailand’s industrial potential while fostering sustainable cooperation.

‘This visit is not only a chance to highlight our capabilities but also a platform to build bridges for economic collaboration, social exchange and sustainable development,’ he said.

The event reinforced Thailand’s status as a global leader in rubber gloves and the industry’s role in driving growth in the South.

Kasikorn Asset Management (K-Asset) has emerged as a market leader in Thailand’s mutual fund industry, capturing more than half of total net inflows this year-to-date to drive its assets under management (AUM) close to 1.8 trillion baht.

Executive chairman Win Phromphaet said the company captured inflows of 134 billion baht this year, representing about half of the entire industry’s inflows. The increase was driven primarily by fixed-income funds, which attracted strong demand amid persistently high interest rates.

By year-end, total inflows could reach 170 billion baht, pushing K-Asset’s AUM beyond the 2-trillion-baht milestone, he said.

K-Asset sees signs of stabilisation for Thai equities over the next six months, supported by a rebound in GDP growth and a bottoming out of corporate earnings revisions.

K-Asset projects the Stock Exchange of Thailand (SET) index to finish in a range of 1,300-1,340 points this year.

“While structural challenges, such as demographics, competitiveness and governance, still weigh on long-term growth, near-term sentiment is improving thanks to fiscal stimulus, reduced political risk and tax incentives,” said Mr Win.

He said interest rate policy will remain a key driver for stock market growth. K-Asset expects Thai policy rates to decline by 50 to 75 basis points (bps) over the next 12 months, with the upcoming Monetary Policy Committee meeting on Oct 8 proving pivotal. If rates are cut later than expected, such as in December, the market could respond positively, with each 25-bps cut potentially lifting the SET index by around 40 points, said Mr Win.

K-Asset continues to recommend high-dividend equities, particularly in the banking and energy sectors. The six largest banks and two smaller players offer dividend yields of about 8%, while major energy firms are delivering 6.3-6.5%.

“Historically, dividend-focused stocks have consistently outperformed the broader market,” he said, adding a new government and proactive policies on household debt are expected to further benefit these sectors.

Despite slow economic growth, dividend stocks remain a stable source of income. Average total returns from Thai equities are projected at 5% annually, with dividends contributing around 4%, noted K-Asset.

“Dividend-paying equities can help balance portfolios, generate consistent income, and protect value in a low-growth environment,” said Mr Win.

Long-term bonds have offered yields of 8-10% in 2025, making them particularly attractive to investors wary of the sluggish performance of domestic equities. However, K-Asset expects yields to normalise over the next 6-12 months.

“Bond yields could fall to around 3-4% once the interest rate downcycle takes hold. Investors should adjust their portfolios according to their risk appetite,” said managing director Wajana Wongsupasawat.

With bond returns likely to soften, there may be opportunities to diversify into other risk assets, including foreign equities and fixed income abroad, he said.