Panel tasked with plan to attract funds
The Finance Ministry has set up a committee to push forward an ambitious plan to develop the Thai capital market as the centre of fund mobilisation in the immediate region, says permanent secretary Somchai Sujjapongse.
The new committee has been preparing a draft of a 10-year development plan proposed by Deputy Prime Minister Somkid Jatusripitak after his recent visit to the Stock Exchange of Thailand.
The panel will be chaired by the finance minister and include members from the private and public sectors.
The new master plan, to be finished in December or January, will be used from 2016 to 2025. The goal is to be the capital mobilisation hub for Cambodia, Laos, Myanmar and Vietnam.
At the same time, the bourse must keep adjusting to ensure a strong position relative to others in Asean.
“We should consider how to tap benefits from the Asean Economic Community and maintain our leading position in the region,” Mr Somchai said.
Thailand’s capital market has led other bourses in the region in terms of daily trading volume over the last four years.
Next year will see geopolitical risk form the major threat to global investment, according to SET executives.
Markets were rattled yesterday after Turkey shot down a Russian warplane. The recent attacks in Paris and prolonged unrest in Syria have investors concerned about how far the conflict could expand.
“We hope these countries’ leaders will have a practical dialogue to bring us peace,” said SET president Kesara Manchusree.
Central banks may have to extend their monetary easing to prop up slow-recovering Japan and Europe, said Visit Ongpipatkul, president of Trinity Securities.
The US Federal Reserve has signalled that it might raise a key interest rate at its next meeting in December.
Somchai Anektaweepon, head of research at Finansia Syrus Securities (FSS), said the stand-off between Russia and Turkey would weigh on investor decisions in the short term.
FSS expects limited downside for the SET and possible buy-back momentum stemming from renewed easing by the European Central Bank.