Thai Capital Market Attraction: Exciting Changes on Horizon
Global tech CEO seeks international financial backing to rekindle Thailand's stock exchange, focusing on policy adjustments and investment restructuring.
Get ready, investors! The Thai capital market is gearing up for some major upgrades, with Deputy Prime Minister and Finance Minister Pichai Chunhavajira leading the charge. The government's goal? To make the Thai stock market a tantalizing destination for bigger bucks.
At the Daily News Talk 2025 seminar, themed "Thai Stocks: The Economic Game-Changer," Pichai dropped some juicy details. It turns out that the SET Index, lingering around 1,100-1,200, is a magnet for investors looking for a good deal. However, big institutional investors have been shifting more of their capital overseas in recent years. Despite solid returns from these foreign investments, the recent market volatility has investors second-guessing their moves, and they're taking a closer look at Thai equities again.
Regulatory Revisions: Time for Change
Readying for some regulation makeovers, Pichai assured the public that the government is more than willing to tweak regulations to make the Thai capital market as irresistible as possible. This means working to restore investor confidence and revamping capital market rules, like the soon-to-be-enforced Securities Oversight Act, which focuses on cracking down on shenanigans like naked short selling.
Broadening the Investment Appeal: Sustainable Funds and More
In addition to regulatory reforms, Pichai has been in talks with various investment funds about new investment policies that could entice more funds to pour money into Thailand. According to him, these new policies are filling up investors' pitchers, who see the current market conditions as an opportunity knocking at the door. Thailand remains eye-catching, especially to the savvy investors who can appreciate the market's underlying values.
In the midst of all this change, investors remain a bit skittish, keeping their capital back while they wait for the next move from Thailand. But rest assured they haven't abandoned ship—they're just playing it cool, watching the Thai market's every move carefully.
Capital Market Development: Beyond the Bond Market
When it comes to broader investment incentives, foreign investors are showing more interest in manufacturing and employment within Thailand. The government aims to support domestic manufacturing, as well as upgrading workforce training—with a particular focus on bolstering research and development sector connections.
Regarding land use reform, the government is tweaking laws to allow up to 99-year leases on state land, rather than requiring investors to buy land. This change comes along with accessibility improvements to utilities like water and electricity.
Crypto Transactions in Sight: Riding the Crypto Wave
Finally, the Bank of Thailand is thinking of adding crypto transactions to the list of payment options via credit cards. This would allow merchants to accept cryptocurrencies without tying them to domestic currency, following in the footsteps of global practices in crypto-based payment systems.
Stay tuned for more exciting developments in the Thai capital market!
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Enrichment Data:To attract more capital inflows into the Thai stock market, the Thai government has proposed several policy adjustments. These include:
- Regulatory Revisions: Deputy Prime Minister and Finance Minister Pichai Chunhavajira has assured that the government is prepared to revise regulations to make the Thai capital market more attractive. This involves restoring investor confidence and revamping capital market rules[1][5].
- Securities Oversight Act: The soon-to-be-enforced Securities Oversight Act will impose civil and criminal penalties for practices like naked short selling, aiming to enhance market integrity and stability[1][5].
- Investor Confidence Measures: Efforts are being directed towards restoring investor confidence, which has been impacted by recent global market volatility. Thai stocks are seen as increasingly attractive, given their significant decline and the compelling valuations[1][5].
- Promotion of Sustainable Funds: The Capital Market Development Fund (CMDF) is promoting sustainable development in the capital market, including the promotion of Thai ESG Extra (ESG X) funds, to attract more investors and diversify the market[4].
Overall, these measures aim to create a more favorable environment for foreign investment in the Thai stock market, particularly as global investors reassess their asset allocations amidst global market volatility.
- The Thai government is aiming to make the Thai stock market more alluring to international investors, with changes in regulations to boost investor confidence, such as the enforcement of the Securities Oversight Act.
- deputy Prime Minister and Finance Minister Pichai Chunhavajira mentioned that new investment policies are in discussion with various investment funds, with the goal of enticing foreign capital to flow into Thailand.
- As part of these changes, the Bank of Thailand is considering allowing crypto transactions as a payment option, following global practices in crypto-based payment systems.
- To further attract foreign investors, the Thai government is also looking to support domestic manufacturing, upgrading workforce training, and altering land use reforms to allow up to 99-year leases on state land.
- In line with environmental, social, and governance (ESG) principles, the Capital Market Development Fund (CMDF) is promoting sustainable development and Thai ESG Extra (ESG X) funds to diversify the capital market and appeal to investors.
[1] Regulatory Revisions[2] Crypto Transactions in Sight[3] Broadening the Investment Appeal[4] Promotion of Sustainable Funds[5] Capital Market Development
