BANGKOK - Thailand’s $88 billion Social Security Office pension fund breached its 8% value-at-risk threshold on March 9, triggered by panic-driven selloffs linked to the U.S.-Israeli war against Iran.
The fund supports healthcare, unemployment benefits, and pensions for 25 million Thais. As of December, 69% of its portfolio remained in low-risk government and state enterprise bonds - just 7% in Thai equities.
Board member Sustarum Thammaboosadee called it the first VaR breach in two years. Investment board member Phanthira "Petch" Vergara, former Goldman Sachs executive, warned Thailand lags Malaysia and South Korea by a decade in pension governance.
Vergara advocates shifting from 69% low-risk assets to a 50-50 global-private/low-risk balance by 2027 - including $11.6 billion into private equity, private credit, and hedge funds.
The fund remains 60% domestically invested, limiting exposure to higher-return global assets. Its status as a Labour Ministry agency restricts agility and transparency during global shocks.
Reform proposals include independent professional management and greater worker representation on the board.