Bangkok: Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, has affirmed the appeal of the Thai stock market, despite the prevailing global economic challenges such as US tariff policies. He emphasized the necessity of swiftly resolving structural issues to regain investor confidence. Pichai proposed a legal review to empower the Stock Exchange of Thailand (SET) to partake in investigating misconducts, alongside prioritizing the utilization of a substantial 4 trillion baht budget by the National Economic and Social Development Board (NESDB) to restructure the economy.
According to Thai News Agency, Mr. Pichai delivered a lecture at the Dailynews Talk 2025 seminar, highlighting the inherent strengths of Thai stocks. Despite market volatility, he argued that several stock groups retain strong fundamentals, presenting viable investment opportunities. The government is tasked with building confidence among foreign investors, which involves addressing infrastructure problems and engaging in negotiations with the US. A central budget of 157 billion baht has been allocated for short-term economic stimulation, with a focus on urgent projects like improving water resources for various sectors.
Mr. Pichai also outlined plans to bolster confidence in the capital market by amending stock purchasing criteria, which is expected to boost stock prices. He stressed the importance of stricter penalties for financial wrongdoing and suggested granting the SET enhanced investigative powers as part of a broader review of financial laws. This initiative aligns with the government’s support for the digital economy, aiming to facilitate smoother transitions for stock investors into digital investments.
In discussions with institutional investors, Mr. Pichai acknowledged a shift towards foreign investments due to higher returns, though recent months have seen a downturn in those returns. With the Thai stock market index experiencing adjustments, investors are cautiously evaluating the possibility of reallocating investments back into Thai stocks, potentially starting with bonds before transitioning to the stock market upon renewed economic confidence.
Regarding the Bank of Thailand’s (BOT) proposal on G-Token issuance, Mr. Pichai clarified that while digital currency issuance must be fully backed, it should not directly relate to goods and services purchases. Discussions with the BOT are ongoing to ensure clarity on this matter.
Finally, Mr. Pichai addressed the recent strengthening of the baht, attributing it partly to capital inflows and noting its potential volatility depending on the outcomes of US trade negotiations. The medium to long-term implications remain under careful consideration.