The Stock Exchange of Thailand (SET) has unveiled a new strategic plan targeting foreign enterprises operating in Thailand and family-owned businesses.
- 📈 SET’s Strategic Plan The Stock Exchange of Thailand (SET) has unveiled a new strategic plan for 2023-2025, aiming to boost the Thai capital market by attracting foreign industries, family businesses, and new economy companies.
- 🎯 Key Objectives The plan focuses on three key objectives: attracting foreign industries with operations in Thailand, encouraging family businesses to go public, and bolstering market confidence through new regulations.
- 🚀 Expected Outcomes The SET hopes that this plan will lead to increased market capitalization, and improved liquidity, aiming to position itself as the third-largest stock exchange within the SEA region.
The purpose of the plan is to ensure that an increasing number of companies relocate to Thailand and encourage family-owned businesses to list on the Thai bourse.
The initiative was born as a response to the post-pandemic situation, which highlighted a rapid evolution of the technology market, and a push for traditional businesses to adapt to the digital era.
The Thai market has faced challenges with trust and confidence issues, particularly concerning small-cap stocks, leading to significant capital outflows.
To address these concerns, the SET has introduced more stringent measures to combat naked short selling, program trading, and high-frequency trading (HFT). These measures are designed to enhance transparency and promote equitable growth among all investor groups.
SET President Pakorn Peetathawatchai expressed optimism about the Thai stock market’s prospects, citing positive feedback from foreign investors during a recent roadshow in Hong Kong.
The SET’s plan also focuses on family businesses, which constitute a significant portion of Thailand’s corporate landscape. Many local brands and family-owned companies have experienced substantial growth, and the SET’s new strategy may encourage more of these businesses to consider listing on the stock market.
The SET Initiatives
Over the past few years, the SET has evolved, aiming to position itself as the third-largest stock exchange within the SEA region.
The institution has taken different initiatives to improve its competitiveness and sustainability.
Some of its main initiatives for the period from 2023 to 2025 focus on improving investment processes and fundraising.
One of the new areas of exploration for the organization is digital assets, through the advancement of the Thai Digital Assets Exchange (TDX) initiative.
The SET will also introduce small-ticket investment products and environment-linked investment options, reflecting its commitment to innovation and sustainability.
According to the reports, the SET’s strategic plan includes the following key initiatives to attract more foreign firms:
Outreach and Promotion:
- The SET will actively promote the Thai capital market and its investment opportunities to overseas companies, particularly those with existing operations in Thailand.
- They will showcase the benefits of listing on the SET, such as access to a large pool of investors and opportunities for fundraising
Regulatory Enhancements
- The SET will review and streamline its listing requirements and procedures to make it easier for foreign firms to list on the exchange.
- They will also work to align Thai regulations with international standards to increase transparency and appeal to foreign investors.
Incentive Schemes:
- The SET is considering introducing various incentive programs and tax benefits to encourage foreign companies to list on the Thai exchange.
- This could include measures such as reduced listing fees or tax exemptions for qualified foreign firms.
Investor Relations Support:
- The SET plans to provide more comprehensive support and guidance to foreign-listed companies on investor relations and corporate governance practices.
- This is aimed at helping foreign firms navigate the Thai capital market and build stronger relationships with local and international investors.
Collaboration with Stakeholders:
- The SET will work closely with government agencies, industry associations, and other relevant stakeholders to identify and address any barriers or challenges faced by foreign companies.
- This collaborative approach is intended to create a more conducive environment for foreign firms to list and operate in the Thai capital market.
