Maybank bullish on Thailand's industrial estate sector
Release Date:
2025-11-12
Maybank Investment Bank has a positive view on Thailand’s industrial estate sector, projecting a multi-year upcycle in foreign direct investment (FDI) that will drive core profit to new highs through 2027, Kallanish notes.
The bank says in a note that it forecasts a 13% compound annual growth rate (CAGR) for the sector's core profit between FY24 and FY27. This growth is anticipated from strong land transfers, solid backlogs, pre-sales, and rising recurring income.
The continued FDI upcycle, is expected to last into 2026–2027, and is being fuelled by ongoing China+1 relocations, accelerating demand from data centres, and resilient traditional segments.
According to the note, data centres are emerging as a key new FDI driver. Maybank expects the country's data centre capacity to reach 2.6GW in the next few years, representing a 16-fold surge, the fastest growth rate in ASEAN.
Meanwhile, ongoing supply chain shifts due to US's tariffs are supporting continued relocation of manufacturing operations to Thailand, particularly from China.
Demand for electric vehicles (EVs) also remains resilient, says Maybank. The next investment wave is likely to come from suppliers moving into the country, following the entry of original equipment manufacturers (OEMs).
This is further supported by the government’s 30@30 policy, which targets 30% EV production by 2030.
The robust outlook, however, carries risks, including global policy uncertainty impacting FDI flows and slower-than-expected land transfers.
From: Kallanish
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