The Singapore Exchange (SGX) provides investors with the opportunity to expand their investments in the Thai economy through Singapore Depository Receipts (SDRs). Investors seeking geographical diversification can access eight Thai SDRs, collectively representing over 40% of the Thai SET50 benchmark index, solidifying Singapore's position as a hub for Southeast Asian investment.

There are many advantages to investing in Thai SDRs:

• Market access: The introduction of SDRs allows investors to tap into the pulse of the Thai stock market, encompassing industry leaders and dominant players in Thailand.
• Currency advantage: Investing in SDRs helps mitigate foreign exchange risk as trading is conducted in Singapore dollars, including dividends. This provides a good option for investors looking to avoid fluctuations in the foreign exchange market.
• Market recovery: Forecasts suggest a potential recovery in the Thai market in 2024, providing investors with an opportunity for early positioning through these SDRs.
• Valuation advantage: The current price-to-earnings ratio of the SET is 14.8 times, lower than its historical average of 16 times, indicating an attractive entry point for value investors.
• Boost from tourism industry: The recovery of the tourism industry, an integral part of the Thai economy, is a positive for the entire market, with investors in these SDRs also poised to benefit.

The newly listed Thai SDRs include Advanced Info Service, Siam Cement Group, Kasikorn Bank, Gulf Energy, and Delta Electronics. Additionally, three SDRs already listed on the SGX are Airports of Thailand (AOT), CP All, and PTT Exploration and Production, which have been listed on the SGX since May 2023. Below are profiles of the eight Thai SDRs listed on the SGX.