OCTOBERASIA BUSINESS OUTLOOK8NEWSROOMTHAILAND TO INVEST FRACTION OF SOCIAL SECURITY FUND INTO GLOBAL ASSETSChinese firms have signed numerous Memorandums of Understanding (MoUs) with Pakistani companies. The agreements were finalized during the seminar 'Business Roundtable Conference' hosted at the Pakistan Embassy in Beijing, according to sources.The deals, centered on textile, technology, agriculture, and livestock industries, were concluded during the `Business Roundtable Conference. During the conference, up to 25 prominent Chinese firms showed strong enthusiasm in making significant investments in Pakistan, spanning across various sectors such as agriculture, automobiles, electrical partnerships, pharmaceuticals, logistics, medical devices, and technology.Abdul Aleem Khan, the Federal Minister for Board of Investment, Privatisation, and Communications, chaired the conference held at the Pakistani Embassy in China. According to sources, Anna Su, the Country Director of Hong Kong Business Group, Li Shuang, the Mayor of Daming County, Qin Linzheng, the Chief Advisor, Sun Deshi, the Deputy Mayor, Li Hui, the Group President of Lianghao, and Khalil Hashmi, the Ambassador of Pakistan to China, all spoke at the conference.At the same time, the IMF has given the green light for a fresh $7bn loan to financially struggling Pakistan. While attending the United Nations General Assembly, Pakistan's Prime Minister Shebaz Sharif stated that the country had met all the requirements set by the IMF's creditors, with support from China and Saudi Arabia. Thailand's US$77 billion Social Security Fund is set to invest US$11.6 billion into global private assets as part of a strategic overhaul aimed at improving its underwhelming returns, according to an interview with Petch Vergara, a board member of the fund. This move is essential for addressing poor performance amid rising demands from an aging population.The fund, which supports healthcare, unemployment benefits, and pensions for 25 million Thai workers, has averaged returns of under 3 percent over the past decade, a rate far below its potential. In response, starting next year, the fund plans to shift away from its heavily domestic-focused and low-risk investments, which Petch, a former Goldman Sachs executive, labeled as unsustainable.Petch, who joined the fund earlier this year, warned that if the fund continues on its current path, it could face bankruptcy by 2051. She emphasized that the existing portfolio, concentrated in Thai assets, poses risks to long-term growth, as low-risk investments might seem safe in the short term but hinder future potential returns.This strategy shift comes at a time when Thailand's population is aging rapidly. As of 2023, 20 percent of the country's 66 million people were over 60 years old, a sharp rise from 10 percent two decades ago. The number of elderly citizens has doubled from 6.2 million in 2004 to 13 million by December 2023, further straining the social security system. CHINA INK MOU WITH PAKISTAN FIRMS FOCUSING ON DIVERSE SECTORS
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