Treasury unveils a 5-year plan to develop the Thai stock market in 5 areas
Date 27 March 2022 time 17:15
“Magic” unveils a 5-year plan to develop the Thai capital market in 5 areas to support fundraising through 12 target industries – Green Economy Model
Mr. Arkhom Termpittayapaisith, Minister of Finance, delivered a keynote address on the topic of “Thai Capital Market Development Policy Mechanism of economic recovery following COVID-19” in the webinar Announced the SEC Strategic Plan 2022 that the Ministry of Finance has planned to develop the Thai capital market in 5 important areas and has assigned the Office of the Securities and Exchange Commission (SEC) to be the host with all sectors. Related section To bring the said policy to form a plan to develop the Thai capital market during the years 2022-2027 (5 years) by including a FinTech development plan. This reflects the government’s commitment to supporting and developing digital technology. to be used in the development of the Thai capital market
For the Thai capital market development plan, 5 areas are as follows:
1. Promoting access to fundraising and supporting fundraising through capital market mechanisms for funders especially in targeted industries such as businesses that use bio-economy models, circular economy and green economy including 12 target industries, technology companies, SMEs or startups both direct and indirect investment through Venture Capital
2. Increasing the competitiveness of the Thai capital market through the upgrading of standards to be equal to international standards Including the release of interesting investment financial products and services to meet the diverse needs of investors
3. Use digital technology for capital markets by focusing on the infrastructure to develop the capital market as well as adjusting various processes of transactions to be automated
4. Sustainable Capital Market Development The Thai capital market will be the main and important engine that will drive the real economy by applying the concept of sustainable organizational development (ESG) to integrate business operations. to achieve sustainable development goals
5. Supporting people’s long-term financial health especially the retirement age to have knowledge and understanding of finance
“From the past situation, it clearly reflects that the Thai capital market is strong and resilient even in the midst of the uncertain situation caused by COVID-19. and rapid development in digital It also plays an important role in the economy. and has developed Enhance efficiency as a mechanism for the Thai economy for the Thai economy to turn back to strong and sustainable growth, which the government, especially the Ministry of Finance, is ready to fully support the enhancement of the efficiency of the Thai capital market. and hope that every part will benefit and be prepared to seize the opportunity Overcome the challenges that arise today and in the future,” said Arkhom.
Since the outbreak of COVID-19 until now The Thai capital market was affected by the economic contraction. resulting in volatility But the Thai capital market is flexible and adaptable. until becoming a pillar in helping businesses to continue doing business reflected from the continuous tebito of the Thai capital market. The third largest in ASEAN, accounting for 1.2 times GDP. while public and private bond markets accounted for 0.9 times GDP. Market participants are growing steadily. diversified and able to attract foreign investment
As for the condition of the Thai capital market affected by COVID-19 as well as stock markets around the world. but recovered quickly The Thai stock price index at the end of 2021 rose 50 percent from an eight-year low in March 2020, and the index is still higher than the end-2019 level before the outbreak of the coronavirus. It is also higher than the average stock market indices in the region as well. At the same time, it was found that 40 securities were offered for sale, the highest in 4 years, with an offering value of 137 billion baht, ranked No. 1 in ASEAN, as well as companies using the channel. The way of raising funds through digital assets 1 person, offering value of 2.4 billion baht, and SMEs raising funds through private equity offerings, 11 companies worth 90 million baht, through 140 crown-funding companies, offering value of 1.4 thousand million baht, with the turnover of the Thai capital market still the highest among the ASEAN stock markets for the 10th consecutive year, averaging at 88 billion baht, an increase of 3% from the end of 2020, which is the highest traded by domestic investors.
While the private bond market has offered long-term offerings exceeding 1 trillion baht, an increase of 50% and short-term 600 billion baht, reflecting that companies can continue to raise funds through debt securities at reasonable costs. As for government debt The Treasury has sold savings bonds through the Bao Tang application by the end of 2021, with a value of 302 billion baht, while the offering of bonds for sustainability of the public and private sectors is at 170 billion baht. Foreign investment flows into the Thai bond market at the end of 2021 at 140 billion baht. Foreign investors hold 1 trillion baht in Thai bonds, a record high, accounting for 6.8% of the outstanding bond. While there are more Thai retail investors who have opened 600,000 digital asset accounts and are the main group in digital asset trading continuously.
However, the Ministry of Finance And related agencies have given importance to promoting and using digital assets to benefit the economy. but must not affect the country’s financial system Because the price of digital assets is highly volatile compared to other assets. and also has developed including growing rapidly Therefore, it is another important and challenging issue in the field of governance to protect investors in order to achieve safe, international trading and a balanced promotion approach. The Ministry of Finance has already proposed tax relief measures for trading digital assets. and will come into effect soon