Fetco prepares to submit a long-term investment plan to the soon-to-be-appointed finance minister.

The Federation of Thai Capital Market Organizations (Fetco) is preparing to submit a long-term investment plan to the new finance minister to stimulate long-term savings.

Thailand’s capital market representative previously proposed a 10-year investment extension period for extra units of the Super Savings Fund (SSF) to financial authorities, aiming to help stabilise stock market volatility.

In March, the cabinet approved a raft of measures, including allowing investors to receive an additional tax privilege of 200,000 baht of annual income, separate from the tax-deductible amount applied to retirement-related funds, for SSF units in which 65% of net assets are invested in SET-listed securities.

Investors must have purchased these investment units between April 1 and June 30 and must hold them for at least 10 years.

The main objective of the one-time investment incentive was to shore up equity investment inflows in Thailand’s stock market.

Fetco chairman Paiboon Nalinthrangkurn said the savings plan will be proposed again to the new finance minister, once one is appointed.

Long-term investment capital still needs to be increased for the stock market to reduce high financial volatility when unexpected events affect market sentiment, said Mr Paiboon.

Although stock market sentiment has improved for the moment due to hopes underpinned by the development of a Covid-19 vaccine, concerns still prevail due to the global economic crisis and accelerating contagion in many places.

“The stock market is not an urgent focus now, but other urgent issues like the unemployment rate are increasing, and tourism industry and small and medium-sized enterprises are waiting for new supporting measures,” he said.

Mr Paiboon said the macroeconomic issue needs to be resolved in the second half or non-performing loans will increase.

The Finance Ministry will unveil additional fiscal policies to boost the economic recovery for the tourism industry that the government will launch focusing on domestic tourists, giving cash handouts as well as tax deductions for Thais travelling inside the country.