Arkhom Termpittayapaisith, Minister of Finance, delivered a keynote address on “Thai Capital Market Development Policy Mechanism of economic recovery following COVID-19”, stating that since the outbreak of Covid-19 until now The Thai capital market has been affected by the economic contraction resulting in more volatility. But the Thai capital market is still flexible and able to adjust well. It also demonstrates its role as an efficient fundraising channel. And it is a pillar in helping businesses to continue doing business.
In the past, the Thai capital market has been able to grow continuously. It is the third largest in ASEAN. In 2021, the size of the stock market is 1.2 times GDP. and the bond market, including those of the public and private sectors, accounted for 0.9 times the size of GDP. At the same time, investors in the Thai capital market have continued to grow as well There is also a variety The new generation has played an important role in the capital market.
“It can be seen that The growth of the Thai capital market under this crisis This, coupled with many challenges, highlighted the important role the Thai capital market plays in the financial sector. and economic sectors of Thailand which in the past The Thai capital market continues to attract foreign investments,” said Arkhom.
Along with stating that for the condition of the Thai capital market, from 2020 to 2021, the Thai stock market and stock markets around the world were affected by several waves of the Covid-19 epidemic, but the Thai stock market was able to recover quickly. The Index has risen nearly 50% by the end of 2021 from an eight-year low in March 2020. The index level is still higher than the end-2019 index before the outbreak of COVID-19. and higher than the average of other stock indices in the region
Mr Arkhom said that in the industry has resulted in the same adjustment especially stocks in the technology sector industrial products and financial group As for the issuance and initial public offering (IPO), more than 40 securities have been issued and offered for sale, the highest number in four years, with a total offering value of more than 130 billion baht, as high as No. 1 in ASEAN
In addition to the IPO, there are also companies that use innovative fundraising channels through digital assets with a total offering value of 2,400 million baht. There are also SMEs raising funds through a narrow band offering of 11 companies with a total value of approximately 90 million baht. and through crowdfunding of 140 companies with a total value of nearly 1.4 billion baht. In addition, in 2021, Thai listed companies were also ranked in the Dow Jones Sustainability Indices (DJSI) Emerging Market with the second highest number.
The average daily turnover The Thai stock market remains the highest value among the ASEAN stock exchanges. For the 10th consecutive year, in 2021, the value was at 88,443 million baht, an increase of 31% compared to 2020, where domestic investors have the highest proportion of trading turnover continuously.
in terms of debt instruments The private sector has issued and offered long-term debt securities worth more than 1 trillion baht, an increase of 50% from 2020, and short-term debt securities worth more than 600 billion baht, which shows that companies can continue to raise funds through the bond market with reasonable costs
in the sector of government debt The Ministry of Finance has issued savings bonds through the Bao Tang application, also known as “Wealth Bond Wallet” (PSC) to help promote and enhance people’s access to the bond market continuously and by the end of 2021 with a total value of 30,200 million baht. In addition, the government and private sectors have also issued and offered for sale bonds for sustainability, with a value of around 150 billion baht at the end of 2021. shows that All sectors are increasingly aware of the importance of the environment, society and sustainability, or ESG.
for investment Thai bond market It found that net capital inflows from foreign investors was over 140 billion baht. By the end of 2021, foreign investors held a record 1.02 trillion baht in Thai bonds, or 6.8% of the outstanding value of Thai bonds. on the other side is the digital asset market at the end of 2021 with a total global value of $2.26 trillion. 64 Found that more than 600,000 retail investors in Thailand have opened more accounts and are still the main group in digital asset trading continuously. However, the price of digital assets is very volatile compared to other assets. There is also a rapid development and growth. both innovation and products Digital asset market is another important issue. and there are challenges in governance.
Minister of Finance said that for Thailand has considered and adopted the guidelines of various countries to be adapted to suit the context of Thailand to provide rules and guidelines cover all parts including taking care of traders or consumers Currently, the Ministry of Finance, the Office of the SEC, Bank of Thailand Including relevant agencies to closely monitor Especially the continuous and close development of digital assets. and discussed together with the goal of promoting business operations that must take into account investor protection And there are business standards for safe trading of digital assets. and in accordance with international regulations with a balanced promotion approach
When it comes to promoting and supporting digital assets in Thailand, The Ministry of Finance has given importance to the use of digital assets to benefit the economy. especially the digital economy which is growing rapidly. However, this must not affect the domestic financial system. The Ministry of Finance has proposed tax relief measures for trading digital assets. The Cabinet has approved the principle and will come into force soon.
The Minister of Finance said that from the past situation, it can be seen that the Thai capital market is strong. and flexible Even in the midst of the uncertainty situation from the epidemic of Covid-19 There is also a rapid development in the digital field. The capital market once once more plays an important role in times of economic pressure. with such roles and potentials The Thai capital market will be able to develop and enhance its efficiency as an important engine for the Thai economy. To help Thailand grow back to be strong, sustainable, covering all sectors.
The Ministry of Finance has set policy directions for the development of the Thai capital market in 5 areas. The Securities and Exchange Commission (SEC) is a co-host with all relevant parties to bring the aforementioned policy into a plan for the development of the Thai capital market for the years 2022-2027, or the next five years, to reflect the government’s commitment to Support the development of technology and digital This includes being used for the benefit of the Thai capital market.
Mr Arkhom said that the Ministry of Finance has been assigned to consider the inclusion of the Fintech plan in the capital market development plan as well Whether it is applying the concepts and mechanisms of blockchain to lay the foundation for the digital infrastructure of the Thai capital market for transparency can be monitored and tracked as well as taking advantage of innovation and technology. including new services To reduce costs and increase access efficiency, which will lead to benefits and promotion of the country’s economy in the future
Policy 1: Promoting access to fundraising and investment through capital market mechanisms for funders especially targeted industrial business sectors such as those that use bio-economy models circular economy and the Green Economy (BCG), 12 target industries, or new S-curve, technology companies, SMEs and startups as new tools and engines to increase productivity. and create economic growth In order to promote fundraising in startup enterprises (startups), the Ministry of Finance has proposed tax measures to the Cabinet that will provide tax incentives for investing in startups. which engages in 12 target industries, including direct investment and indirect investment through Venture Capital, which the Cabinet has approved in principle and will be effective soon
Policy 2 Enhancement of Potential and Competitiveness of the Thai Capital Market Through the upgrading of standards to be equal to international standards, raising the visibility of the Thai capital market in the global and regional arena including the release of interesting investment financial products and services to meet the diverse needs of investors
Policy 3 The use of digital technology for capital markets with an emphasis on the development of digital infrastructures such as Distributed Ledger Technology to optimize processes. to automatic transactions and for maximum efficiency by various businesses able to conduct business more effectively and transparently
Policy 4 Sustainable Capital Market Development The Thai capital market will be the main and important mechanism that will drive the economic sector towards incorporating ESG factors into business operations. This will be the foundation to truly achieve the Sustainable Development Goals.
Policy 5 Supporting the good financial health of the people in the long term especially retirement age and financial literacy which this matter has been carried out continuously The Thai capital market will continue to focus on developing investment products and services that are suitable for the needs of investors continuously. and beneficial to all affected sectors under various challenging situations that may occur in the future
Mr Arkhom said that the Thai capital market must encourage investors to know their rights and play a greater role. through knowledge of investment finance that will help investors to protect themselves avoid being deceived and through digital knowledge in the use of capital market services To gain access to the capital market wisely and have the skills to meet their needs and achieve their own investment goals
From the capital market development policy to be an important mechanism to help restore the Thai economy to sustainable growth covering all sectors. The government by the Ministry of Finance is ready to fully support it. so that Thailand can achieve such goals. and hope that all sectors will benefit and able to be prepared to seize opportunities and overcome challenges that arise both now and in the future The Ministry of Finance is ready to do its best to ensure growth. Economic recovery is strong and sustainable. as well as spreading to all sectors and areas in Thailand
