Thailand and Malaysia: Where Foreign Capital Is Quietly Returning to ASEAN
Thailand's SET has surged and Malaysia drew the region's only net foreign inflows in early 2026. As capital rotates back into ASEAN, the markets' major shareholders are weighing how to fund their next move.
Southeast Asia is quietly back on the radar of global investors. Thailand's SET index has been among Asia's strongest performers, climbing sharply over the past year to its highest levels since 2022. Malaysia, meanwhile, stood out in April 2026 as the only market in Asia to attract net foreign inflows — a notable distinction in a volatile period.
Thailand's re-rating
Thai equities have rallied on returning foreign flows and improving sentiment, with some analysts setting year-end targets well above current levels. The recovery reflects renewed confidence in the market after several subdued years.
Malaysia's steady draw
Malaysia's benchmark has held firm, supported by domestic resilience and selective foreign interest. Base-case forecasts point to further upside through 2026, even as the wider region navigates external risks.
Capital needs follow the rally
When markets re-rate, major shareholders face choices: whether to raise capital, fund expansion, or diversify concentrated positions. Across ASEAN, private credit and alternative asset-backed lending have grown to meet that demand, offering flexibility that traditional channels often lack.
Squadron Capital deploys direct, non-recourse capital to significant shareholders across Asia-Pacific, including Thailand and Malaysia, with no personal or corporate guarantees. It lets a shareholder unlock liquidity from a listed holding while keeping its long-term upside.
The ASEAN opportunity
As foreign capital rotates back into Southeast Asia, the region's founders and major shareholders are well placed — provided they can access the right kind of flexible capital at the right moment.
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Frequently asked questions
How has Thailand's stock market performed in 2026? The SET has been among Asia's strongest performers, reaching multi-year highs on returning foreign inflows.
Why is Malaysia notable in 2026? It drew the region's only net foreign equity inflows in April 2026 and carries stable upside forecasts for the year.
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