Thailand’s new pension fund faces delays, performance concerns | Asset Owners

Thailand’s plans to launch a new pension fund could face resistance from the industry and further delays as the government tries to balance different stakeholders’ needs, say experts.

The new vehicle’s investment performance could also suffer as a result of the country’s protectionist labour laws, which have limited the depth of expertise in its asset management industry.

On March 30, Thailand’s cabinet in principle approved a bill that would introduce a new mandatory pension scheme for private sector workers who are not covered by existing voluntary provident schemes. Known as the National Pension Fund (NPF), the new vehicle aims to address a low pension coverage rate and an aging population that is expected to yield one million additional retirees a year from 2023. The government has not yet offered any indication as to exactly when the NPF could launch. 

The new bill is…