HoonSmart.com>> Prime Minister highlights 3 guiding principles for developing Thai capital market. Attracting foreign investment aims to push Thailand to be an investment destination in the region with a focus on the shift towards sustainability. Supporting the digital economy
Mr. Sitha Thavisin, Prime Minister and Minister of Finance gave a special lecture on the topic “Policy and Direction for Thai Capital Market Development” at the Strategic Announcement Symposium 2024 SEC said that the government attaches great importance to the capital market. In the past, the Thai capital market faced short-term challenges. Both the global volatility situation and the challenge of confidence by local investors As a result, the stock price index of the Stock Exchange of Thailand (SET Index) rose significantly.
However, if we take into consideration the fundamental factors of the Thai capital market it can be seen that it is strong. In the long term it is very resilient and the value of the securities ranks 27th in the world and the third largest in ASEAN, and it also has the highest cumulative historical value for an IPO in ASEAN.
In addition, the government sees an opportunity for development to meet important changing trends. Both digital and sustainability aspects which have a dual transitional impact on the entire capital market system, overall economy and people’s well-being as well as giving importance to the country’s transition to digital economy and sustainable economy or environmental, social and governance (ESG) economy as well.
Sustainability The concrete part is the establishment of the Thailand Environmental, Social and Governance Fund, because both the private and public sectors in Thailand have strengths in these matters. Thailand currently has a large number of listed companies selected for international sustainability indices compared to other countries.
Therefore, the government sector has approved the Thailand ESG Fund, which benefits both those who raise money to do good things for society and those who have savings and receive long-term returns while strengthening the country’s ESG aspect. Preliminary information predicts that there will be investment management companies (“Asset Management Companies”) offering ThaiESG funds, totaling 16 mutual funds, 22 funds, and generating funds to raise funds of at least 10,000 million baht from 30-year-old investors. -60 years, at least 100,000 accounts and is expected to help create new investors who care about the environment and sustainability.
At the same time, technological progress The government attaches great importance to the transition to the digital economy in order to increase efficiency and create value for the overall economy. The Thai capital market plays an important role in helping achieve this transformation. The Securities and Exchange Commission has received this government policy. By raising the level and modifying the organizational structure. There is an emphasis on the strategic plan and the addition of departments in the areas of financial innovation and technology. – Encouraging the adoption of technology and financial innovation, especially digital assets, are used to increase efficiency and reduce costs in accessing sources of capital for the business sector. This is one of the main mechanisms in pushing the country towards the digital economy and one of the main goals of the Authority’s strategic plan in the future.
The government aims to promote the development of business fundraising and public investment. Therefore, they agreed on principles that reduce obstacles to strengthening the digital asset ecosystem, such as tax inequality. This will lead to equal competition between business operators in the digital assets market. Reducing the burden on participants by digital asset business operators. Issuers and sellers (issuers) as well as investors in the digital assets market It also encourages the use of technology in raising funds through investment tokens to promote the development of innovation to be more realistic.
The first approach that the government attaches great importance to is attracting foreign investment. By pushing the Thai capital market to be an investment destination in the region, which will lead to more investment in various industrial sectors, the government is focusing on opening up international trade markets, economic zones and investing in infrastructure. It will accelerate negotiations and expand the Free Trade Agreement (FTA), open new markets, build economic cooperation with other countries, especially countries in Europe, the Middle East and Africa, as well as enhance convenience. When doing business in Thailand for foreign investors and companies (Ease of Doing Business), the government will also provide information on investing in the Thai stock market or promotional campaigns to further build confidence among foreign investors.
The second approach is to shift the focus towards sustainability. The government will take action and support all sectors to move forward with full force. It aims to achieve the Sustainable Development Goals or Sustainable Development Goals (SDGs) and carbon neutrality goals by 2050 and net greenhouse gas emissions (net zero) by 2065, with the government continuing to promote allowing the Thai capital market to develop mechanisms for the business sector. Ensuring adequate capital for the transition to green businesses and providing small businesses with access to knowledge, technology and capital to adapt to the environmental crisis. The government sector itself will move forward. Policies to stimulate the green bond market (Green Bond Market), raise funds to support the Sustainable Development Goals (SDG Finance), and sustainable financing policies that are in line with international standards. The Green Financing Mechanism, which set the goal of issuing and offering debt instruments to enhance sustainability. (Sustainability-linked bonds) of at least 30,000 million baht to enable relevant organizations and agencies to jointly implement policies that create sustainability. and establishing a green rating in Thailand to promote growth and investment in environmental and social projects.
The third method is to support fundraising by the business sector. Especially the digital economy and SMEs/startups in order to have enough money to run their businesses. Continue to grow and expand on a global scale.
For the digital economy: The public and private sectors will invest together in companies in industries that use advanced technology, artificial intelligence, research and development in technology and innovation.
As for SMEs/startups: The government sector will develop a comprehensive mechanism to assist SMEs/startups, starting with product development. Financing as well as opening the market
Government guidelines are those that the government will accelerate in the capital market sector. The government also has a variety of policies to be implemented in other sectors as well. I have great confidence that if the government’s actions in all sectors are integrated together, it will lead to the growth of the Thai economy.
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