CIO Weekly Highlights: Second wave risks remain
Tourism was the hardest hit sector in this pandemic outbreak, and ASEAN economies are generally dependent on tourism receipts. For example, it is as high as 11.5% of gross domestic product (GDP) for Thailand. As a result of a collapse in tourist arrivals, many direct market sectors (such as airlines, hotels, and airport operators) and indirect sectors (such as retail malls and restaurants) have been affected.
Although share prices in these sectors have dropped significantly and pent-up demand could surface as lockdowns ease, we believe they are still to be avoided for now until we have more clarity on the transmission patterns of the virus. A relapse of the pandemic later in the year and a shift in consumption behaviour are key risks to the 12-month outlook ahead.
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