Bangkok: Paiboon Nalinthrangkura, President of the Investment Analysts Association and CEO of TISCO Securities, has urged the new Anutin government to implement measures to encourage investment in the Thai stock market. He believes that the government has the opportunity to introduce both short-term and long-term policies that will provide structural solutions to the country’s economic challenges.
According to Thai News Agency, Paiboon posted on his Facebook page that the recent surge in the SET Index by nearly 250 points, or approximately 24%, over the past few months indicates growing investor confidence. This positive trend is attributed to clearer political factors and the economic strategies of the Anutin government, especially the reintroduction of the “Half-Half” scheme aimed at stimulating immediate consumption.
Paiboon emphasized that while short-term populist policies are necessary to address the weak state of the Thai economy, they should be implemented with caution due to budget constraints and high government debt levels. He also expressed hope that the Anutin government would address both immediate and structural economic issues.
He highlighted the aging population as a significant concern, with Thailand nearing a super-aged society status. Paiboon suggested that modernizing the social security system and enacting the National Pension Fund Act could provide a foundation for structural solutions within the limited time frame of the Anutin government’s tenure.
Despite improvements in the investment climate, the Thai stock market still lags compared to global and regional markets. The SET Index has fallen significantly since the beginning of the year, and the Thai stock market faces challenges in serving as a reliable fundraising source for businesses.
Paiboon pointed out that the Thai stock market is dominated by short-term investors, contributing to high volatility and undervaluation of businesses, which hinders effective fundraising. He proposed several measures to promote long-term investment, including tax exemptions for long-term stockholders, increased support for the Thai ESG Fund, and incentives for life insurance companies and government-run organizations to invest in the stock market.
Paiboon concluded that if the Anutin government successfully promotes long-term investment while addressing economic issues, the Thai stock market could experience a sustainable recovery and regain its role as a key fundraising platform.