As Thailand grieves, three winning stocks ensure Teflon economy continues

Thailand’s King Bhumibol Adulyadej, who died recently at the age of 88, was born 11 years before the invention of Teflon, the indestructible chemical compound that can withstand high temperatures. During his 70-year reign, Thailand became known as the Teflon economy.

Thailand was a poor rural economy when the king was crowned in 1946, but today it is a modern economy. Its income per capita has risen 95 times during the king’s reign. Its stock market has risen threefold since foreign investment was allowed in 1987. Its economy has weathered severe storms, including 12 coups and a harrowing economic crisis in 1997. Tourists and investors have flocked to the kingdom, famed for its lush beaches and lavish hospitality. The king was a stabiliser and unifier. He eased tensions between the military and civilian politicians.

Secret sauce
What was the secret sauce that made the king a source of stability? The king had been at the centre of Thailand’s success. The monarch had a symbolic value well beyond his formal powers. He was a potent icon of defiance in a country that was never colonised. Various military governments actually raised his stature. General Sarit Thanarat, a military ruler in the 1960s, revived practices such as prostrating before royalty.

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