Aberdeen: Silver lining in trade spat
The ongoing trade dispute between China and the US may end up being advantageous for Thailand, says Martin Gilbert, chief executive of Aberdeen Standard Investments.
Mr Gilbert contends that increased tariffs and reduced trade between the two superpowers may cause both China and the US to look to other markets for goods.
“To a certain extent it is to Thailand’s advantage,” he said. “What the Chinese will do is show their displeasure with the US by not buying their products and look for products elsewhere. There will also be opportunities for them to export to the US as well.”
While tensions may seem high, Mr Gilbert said the conflict should be resolved before it escalates t o an all-out trade war, as neither party would benefit.
Aberdeen has been investing in Bangkok for 30 years and manages about US$4 billion (131 billion baht) in investments in Thailand, with money in many large corporations like Siam Cement and real estate giant Land and Houses.
Thailand’s strong corporate management and a government amenable to foreign investment have made the country a great place to do business in, Mr Gilbert said.
“The trick to doing business in Thailand is you just got to disregard the politics and just focus on the companies,” he said. “And that’s why we’ve been so successful here.”
Aberdeen focuses on safe long-term investments to hold for an average of 10 years. For instance, it has kept its stakes in Siam Cement and Dusit Thani for 30 years.
Mr Gilbert said the current short-term financial climate is untenable. It’s been 10 years since the last financial crisis, and he views the world economy as “due for a correction”, which we might be seeing already in the performance of some Asian stocks.
“I think we need to get back to reality in investing, such as buying stocks for the long term with good dividends,” Mr Gilbert said.