Minister nudges SET to restore public trust

Bangkok Post

16 hours ago

The Finance Ministry has tasked the Stock Exchange of Thailand (SET) with restoring investor confidence and outlined four mandates to drive sustainable development of the country's capital market.
The SET's mandate is to restore public trust and confidence in the Thai capital market and ensure its long-term sustainable growth, said Finance Minister Pichai Chunhavajira.
"Today the SET celebrates 50 years of operation, but we must also look ahead to the centennial. By then, I hope to see a market that has fully rebuilt public trust and investor confidence," he said.
Among the four responsibilities for the bourse is enabling Thai businesses to access efficient and affordable funding through capital markets.
The second task is to accelerate product development and innovation in the capital market that addresses fast-changing investor needs.
Third, the SET's internal systems must be upgraded to ensure inclusive, seamless market participation for all stakeholders.
Finally, the exchange needs to work closely with the Securities and Exchange Commission (SEC) to review and streamline regulations to ensure a fair and transparent market for both institutional and retail investors.
Mr Pichai said these priorities are essential not only for investor protection, but also for "empowering the public to become active participants in wealth creation".
The capital market must be a reliable pillar in times of global uncertainty, acting as a trusted mechanism for both fundraising and investment, he said.
"Our goal is to provide Thais with broader, more accessible investment options, grounded in transparency, sufficient information, and long-term returns. We want to build a market where investors, especially retail participants, can make informed decisions with confidence," said Mr Pichai.
As the SET enters its sixth decade, it faces the critical task of evolving into a more agile and inclusive platform positioned not only to drive economic growth, but also to deliver lasting value to Thai society, he said.
SET chairman Kitipong Urapeepatanapong said the bourse is committed to creating new investment opportunities and options, while advancing trading platform technologies and financial products to enhance competitiveness on a global scale.
Collaboration across regulators, including the SEC and law enforcement bodies such as the Department of Special Investigation, is critical to rebuild market confidence and strengthen transparency of the capital market, said Mr Kitipong.
"Over the years, Thailand's capital market has endured numerous crises. The ability to adapt quickly is crucial," he said.
"Building trust isn't a solo effort -- it requires cooperation between the SET, the SEC and other stakeholders."
To encourage broader participation and reduce compliance barriers, the SET is recommending the Revenue Department allow listed companies and their counterparties to submit tax filings via e-filing systems, in addition to accelerating tax refund processing.
Mr Kitipong also suggested revisiting outdated capital market regulations, particularly those hindering foreign company listings and dual accounting practices among local businesses.
"What's holding the market back is lack of trust and overly complex regulation. We need fair, clear rules and a digital-first mindset," he said.
In addition, the SET is awaiting approval of proposed tax incentives under the Thailand Individual Savings Account scheme, including at least a 50% dividend tax cut, aiming to enhance long-term individual investments.
"Investors must exercise sound judgment, but it's our job to provide accurate, timely data," said Mr Kitipong.
SET president Asadej Kongsiri said the bourse's mission is to create equal opportunity across all segments, from investors to entrepreneurs, by increasing access to high-quality data and expanding funding channels for sustainable business growth.
"We want to empower individuals and businesses to use the capital market as a platform for long-term success," said Mr Asadej.
The SET is developing new investment products and tools in response to market evolution, such as depositary receipts and exchange-traded funds, to help investors diversify and gain exposure to the global market.
The bourse is also building a next-generation, artificial intelligence-powered data platform to enable investors to analyse and interact with capital market information more efficiently.
Despite short-term volatility from both domestic and global factors, Mr Asadej remains optimistic, pointing to resilient sectors such as healthcare, branded consumer products, and tourism as long-term growth drivers.
"Our focus remains on building investor confidence, strengthening market stability, and modernising infrastructure to ensure the Thai capital market is a reliable tool for future economic development," he said.