The new government has vowed to implement measures ahead of the next election to restore confidence in the country's capital market, including a regulatory guillotine expected to cut corporate costs by 134 billion baht annually, lifting GDP growth by 0.89% per year.
Prime Minister Anutin Charnvirakul gathered with his economic team on Thursday to discuss quick-win measures for the capital market with the Stock Exchange of Thailand (SET) and the Federation of Thai Capital Market Organizations (Fetco).
The premier stressed that regulatory reform requires decisive action and said changes that can be resolved at the ministerial level, without passing new laws, will be expedited. The move aims to eliminate outdated regulations that hinder business operations.
"We believe the regulatory guillotine proposed by the SET can be completed successfully. I have given full authority to each minister to coordinate with their respective agencies to deliver results quickly and build a long-term foundation for Thailand's capital market," Mr Anutin said.
The government also plans to exempt dividend taxes on long-term stock investments, he said.
Mr Anutin voiced confidence that investor sentiment will recover within four months, supported by measures that directly benefit the market, including the reintroduction of the popular "Khon La Khrueng" co-payment stimulus scheme.
The incoming government has held discussions with the Thai Chamber of Commerce, the Federation of Thai Industries and the Bank of Thailand, all of which sought clarity on government policies and market support measures.
Regarding unexplained capital inflows that have strengthened the baht, Mr Anutin tasked Finance Minister Ekniti Nitithanprapas, the Anti-Money Laundering Office and the Securities and Exchange Commission to investigate the suspicious fund flows through the Thai capital market.
"If grey or illegal money is identified, it will be seized," he said. "We want to see the stock market continue its rising trend. We have a strong team and policies that will support the market. Once investor confidence is restored, we believe investors will return."
Fetco chairman Kobsak Pootrakool said the government has the right team and policies to rebuild trust, provided the vowed measures are implemented.
He urged the administration to facilitate initial public offering supply by enabling large domestic firms and foreign companies, particularly those benefiting from Board of Investment incentives and investors in the Eastern Economic Corridor, to list on the Thai bourse.
Fetco also called for dividend tax exemptions as incentives to encourage long-term stock investments, as the organisation engaged with large listed firms to promote sustainable investment practices, including technology transfer, reskilling, upskilling and the adoption of artificial intelligence to support small and medium-sized enterprises and startups.
Fetco is pushing to revise investment rules governing foundations and insurance associations, which hold substantial capital.
"If adjusted within four months, these measures could inject tens of billions of baht in additional liquidity into the market," said Mr Kobsak.
SET chairman Kitipong Urapeepatanapong expressed confidence that regulatory reform will be completed under the Anutin administration, highlighting the expertise of the reform team led by Deputy Prime Minister Borwornsak Uwanno, who can coordinate with other ministries to drive the initiative forward. Regulatory reform should be treated as a national agenda item because it would significantly lower business costs and strengthen the economy, said Mr Kitipong.
The SET also urged the Finance Ministry to grant dividend tax exemptions, in addition to allowing listed companies to file taxes electronically with faster refunds.
Energy Minister Auttapol Rerkpiboon said the government will unlock electricity and infrastructure constraints to support new large-scale investments, including data centres, cloud services, high-speed rail and other large projects located in industrial estate areas to lift national competitiveness.
