The Thai capital market sector aims to bolster investments in ESGX funds, featuring 37 funds managed by 19 fund management companies

Capital market sector ready to support investment in Thai ESGX funds, preparing to open LTF information checking service for all funds via the Stock Exchange of Thailand website starting May 2, expecting an inflow of 2 billion baht

The Ministry of Finance, the Securities and Exchange Commission (SEC), the Association of Investment Management Companies (AIMC), and the Stock Exchange of Thailand held a press conference to announce their collaboration in preparing to support investments in the Thai ESGX fund and facilitate the exchange of investment units from LTF, starting May 2, 2568.

In addition, a new service is launched for investors to check the holding information of all LTF units from all asset management companies in a centralized manner via the Stock Exchange of Thailand website to support the decision to exchange LTF units in accordance with the tax benefits conditions according to the measures supported by the government. The investment management industry aims to raise no less than 20,000 billion baht in investment funds.

In accordance with the government’s tax incentives to support investment in sustainable stocks (ESG) and enhance the stability of the Thai capital market, the Company has provided tax incentives for new investments in Thai Special Sustainability Funds (Thai ESGX) and the switching of long-term equity funds (LTF) to Thai ESGX for a period of 2 months, from May to June 2025, according to the conditions set by the Revenue Department. Currently, there are a total of 37 Thai ESGX funds from 19 fund management companies (Asset Management Companies) that are under consideration for approval to establish the company.

The investment management industry has prepared to offer Thai ESGX for sale simultaneously from May 2, 2025 and support the switching of investment units from LTF from May 13, 2025 by viewing all of their LTF holdings in one place to check and consider the decision to switch from LTF to Thai ESGX for tax deduction from May 2, 2025 onwards on the SET website www.set.or.th/ltf

What are Thai ESGX funds ?

Thai ESGX is a fund with an investment policy in assets that are outstanding in terms of environment or sustainability that the issuer is a Thai government or a business established under Thai law. Thai ESGX is required to invest in sustainability stocks with an average of not less than 65% of the net asset value.

The tax incentive limit under Thai ESGX measures is divided into 2 limits, including:

Limit 1 for general investors who are interested in investing in Thai ESGX can start buying from May 2 – June 30, 2025, with a maximum tax deduction limit of not more than 30% of assessable income only for the portion not exceeding 300,000 baht, with the investment unit holding for at least 5 years (the date of investment from the date of investment).

The second credit limit is for LTF investment unit holders as of March 11, 2025 who wish to switch all existing LTF investment units in all LTF funds in all asset management companies (excluding other tax units under the same fund such as SSF class) to Thai ESGX investment units during May – June 2025 with a maximum tax deduction limit of 500,000 baht from the tax year 2025 – 2029, with a maximum tax deduction limit of 300,000 baht in 2025 and the same amount of tax deduction for 2026 – 2029.