A taskforce set up to enhance the attractiveness of the Thai capital market has launched a sweeping reform package, seeking to deliver quick results within the next four months while laying the foundations for long-term competitiveness.
The Taskforce for a Competitive and Attractive Market, which consists of representatives from the Ministry of Finance’s Fiscal Policy Office (FPO), the Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET) and the Federation of Thai Capital Market Organizations (Fetco) on Monday unveiled the Thai Capital Market Attractiveness Initiative.
The reforms are built around four pillars, comprising quality demand, attractive supply, trusted market and a supportive ecosystem. Together, they aim to restore investor confidence, expand fundraising opportunities and reposition Thailand as a regional fundraising hub.
The first set of measures focuses on simplifying initial public offering (IPO) rules to streamline listing procedures, reduce regulatory barriers and make the Thai market more competitive compared with regional peers.
The taskforce will also propose regulatory changes to the Ministry of Finance to eliminate outdated restrictions on fundraising, particularly for small and medium enterprises and “new economy” companies.
Thailand’s benchmark index has dropped more than 7% this year, the worst performer among Asia’s major stock markets, as international funds withdrew about US$2.9 billion.
“We need urgent action to restore the appeal of the [Thai] stock market among the international investors,” said SET president Asadej Kongsiri.
Tax incentives are being considered for technology firms endorsed by the Board of Investment, aiming to draw more innovative businesses to the Thai bourse.
The initiative also calls for expanding retail investor participation through individual investment accounts and providing greater access to wealth management tools and diverse financial products.
Under the attractive supply pillar, authorities plan to lure more high-potential new economy firms to list in Thailand, upgrade existing companies through programmes such as Jump+ and Value Up, and promote ESG disclosure aligned with the International Sustainability Standards Board framework.
The Trusted Market component emphasises reinforcing corporate governance, tightening oversight of market professionals and leveraging technology to boost transparency, particularly for small listed firms.
The supportive ecosystem pillar seeks to diversify investment products, accelerate digital transformation and update trading rules in line with evolving investor behaviour.
Warothai Kosolpisitkul, international economic advisor at the FPO, said the measures serve as quick win initiatives that will generate tangible short-term results while catalysing long-term economic restructuring.
By attracting high-potential businesses to raise funds, the market creates greater opportunities to drive growth across various sectors and broaden the investor base. This will make the Thai capital market a more efficient fundraising platform for national development, he added.
While global volatility and domestic structural challenges remain, regulators view that quick reforms in IPO rules, tax incentives and digitalisation, alongside structural measures to enhance governance and supply can restore inflows, strengthen resilience and secure Thailand’s standing in the global capital market.
SEC secretary-general Pornanong Budsaratragoon said in the next phase, the regulator will proceed with developing other areas of the capital market, including bond markets, investment units and a digital capital market.
FETCO chairman Kobsak Pootrakool said the collective effort to strengthen the stock market’s competitiveness helps address the country’s emerging challenges while maintaining the SET’s pivotal role in supporting the economy.
Establishing tangible quality demand, in particular, will serve as a key foundation for cultivating a long-term investment culture. This includes the development of individual investment accounts which will empower investors to transform their savings into sustainable long-term investments, preparing for the country’s transition towards an ageing society, he said.