Former Prime Minister Thaksin Shinawatra has proposed significant measures aimed at revitalizing the Thai stock market, emphasizing the urgent need for government action to restore investor confidence and address corporate misconduct swiftly.
Thaksin identified three critical areas: trust, confidence, and sentiment, which he believes are currently lacking due to unfavorable global conditions.
“We must acknowledge the absence of these factors and take immediate steps to restore them,” he stated during a comprehensive dinner discussion on Monday.
He urged for the rapid updating of regulations to address adverse events and enhance the powers of regulatory authorities to effectively manage market issues.
Thaksin called on the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand to proactively rebuild confidence, which has been shaken by recent corporate scandals.
On Tuesday, the benchmark SET Index fell by 14 points, closing at 1,340.25, reflecting a 4.3% decline since the beginning of the year.
He also highlighted the need for a reassessment of high-frequency trading practices, which often serve little purpose beyond increasing trading volume.
To bolster market integrity, Thaksin emphasized the importance of sound capital management, accurate accounting, and stringent auditing standards for companies.
“Continuous monitoring and health checks of listed companies are essential for building market credibility,” he stated.
Furthermore, he indicated that the Ministry of Finance is preparing to strengthen the SEC’s authority to resolve issues quickly, without reliance on prosecutorial oversight.
Casinos and Cryptocurrencies
In a recent cabinet meeting where a draft law to legalize casinos was approved, Thaksin proposed new measures to control access and tax revenue from online gambling.
“With two to four million Thai users involved in online gambling, amounting to savings of 300 billion baht and annual gains and losses of approximately 500 billion baht, the potential tax revenue could exceed 100 billion baht if taxed at 20%,” he explained.
In addition, Thaksin suggested the promotion of new investment avenues, including casino entertainment complexes, digital assets, and the carbon credit market, to provide more options for investors.
He stressed the necessity of enhancing economic fundamentals to attract investments, projecting GDP growth of over 3% for this year, 4% in 2026, and 5% in 2027, with noticeable growth expected by the second half of 2025.
Thaksin proposed exploring measures to make equities more appealing than bonds, advocating for a revival of the long-term fund (LTF) scheme, which could bolster market performance amid expiring units.
Revisiting tax reforms, such as reducing corporate and personal income tax while increasing value-added tax (VAT) to compensate for lost revenue, are also key priorities, according to Thaksin.
Moreover, he outlined strategies to formalize the underground economy, ease regulations for new investments, and establish Thailand as a prominent financial hub.
An advocate for cryptocurrencies, Thaksin suggested that Thailand explore issuing stablecoins backed by government bonds and expand digital currency initiatives.
He urged the SEC to adopt a more digital-forward approach, facilitating stablecoin trading and other asset-backed tokens.
“The potential for token trading could allow stakeholders with passive assets, such as properties, to tokenize their holdings,” he said, highlighting the ongoing discussions that may soon see practical applications.
While Thaksin does not hold an official government position, he is recognized as a significant influencer within the Pheu Thai party, which is led by his daughter, who also serves as the prime minister.
In recent travels, Thaksin’s ideas have consistently moved to the forefront of policy discussions within the cabinet.
A market analyst has commented that the overall market impact of Thaksin’s address is expected to be limited, noting the absence of definitive proposals for corporate tax cuts.
