Three Key Strategies to Fuel Sustainable Growth in Thailand’s Capital Market
The Thai capital market is set to undergo transformative changes as new strategies are implemented to foster sustainable growth in the face of global financial challenges and political uncertainties. The Stock Exchange of Thailand (SET) aims to establish an inclusive capital market with three main strategies: strengthening reliability and trust, enhancing market capabilities, and promoting sustainability.
During the “Thailand Focus 2024: Adapting to a Changing World” seminar, the SET chairman outlined these strategic pillars, emphasizing the importance of building investor confidence and market resilience.
In collaboration with leading organizations, the SET is focused on evaluating and improving environmental, social, and governance (ESG) standards for listed companies. This initiative includes the development of new ESG-centered financial products and support for family businesses, which represent a significant portion of the market.
So far this year, retail investors have made substantial net purchases on the SET, totaling 122.4 billion baht. In contrast, foreign investors have been net sellers, indicating a complex investment environment influenced by policy and economic shifts.
SET President highlighted ongoing interest from foreign investors, noting that their perspective on Thailand’s evolving policies and economic strategies will be crucial for future growth in the capital market.
Despite facing liquidity challenges and shifts in government, experts believe that the Thai capital market shows potential for adaptation and growth. Analysts have pointed out that Thailand’s capital market retains a strong position, holding a 37% market share within ASEAN and poised for further expansion.
Lessons from successful governance improvements in other countries, such as Japan, can guide Thailand in fostering greater investor trust and participation. The introduction of beneficial pension reforms could also attract more investments, coupled with tax incentives for investors.
To boost confidence and regulatory integrity, the Securities and Exchange Commission (SEC) is enhancing oversight measures, implementing new dynamic price band rules to mitigate stock price volatility and protect investors. Positive changes in investor sentiment have already been observed since the introduction of these measures.
The “Thailand Focus 2024” seminar has brought together diverse stakeholders, including government officials and finance leaders, to discuss investment opportunities with 178 institutional investors from around the globe. The event underscores the ongoing attractiveness of Thailand’s capital market, highlighting its resilience and potential for sustainable growth.
