OPINION

Learn before driving

Re: "Fund lures Thai dropouts back to school", (BP, May 22).

Your report by Mongkol Bangrapa regarding school dropouts reminded me of a similar problem Mexico had in the 80s. Solved quickly by requiring an eighth-grade graduation before acquiring a driver's licence.

Re: "SMEs look to each other for funding", (Business, May 21), "Thai traders ramp up foreign stock investments", (Business, May 23).

Thailand's equity market suffers from a structural imbalance. While the top 20 large-cap stocks dominate trading and represent over 60% of the Stock Exchange of Thailand's (SET) market capitalisation -- nearly half the country's GDP -- countless smaller firms on the SET and MAI remain overlooked by investors.

Among them are many high-potential small-mid cap companies that receive no analyst coverage and remain virtually invisible to institutional investors. In today's subdued equity market valuation, these firms are likely to either delay equity issuance due to dilution concerns or cut back on essential investment for growth. Without access to short-term bank loans, cash-hungry growth companies may see liquidity squeezed as burn rates increase.

To close this funding gap, professionalising finance leadership is a key supply-side solution. Undervalued firms should recruit seasoned CFOs capable of engaging directly with the investor community, articulating growth strategies supported by sound financials, and leading transparent and timely financial disclosures. Building strong in-house finance teams and offering competitive incentives are equally crucial.

Investor sentiment continues to slide. The SET's average price-to-book ratio has dropped to 1.1, while MAI key valuation metrics are now below their 10-year averages. Thai retail investors are increasingly reallocating capital overseas and recycling funds offshore, contributing to capital outflows.

Thailand must revise its growth strategy to achieve national development goals, with a renewed focus on enhancing productivity and competitiveness. Transitioning to an investment-led, high-value economy is not only essential to raising income but also to revitalising domestic capital markets. Economic growth and capital market development are two sides of the same coin. Unlocking the full potential of SMEs is key to accelerating Thailand's economic progress.

Re: "A stark choice to make", (About Politics, May 24).

It is crucial for former premier Thaksin Shinawatra to decide whether to "be there at the court or not" -- attending the hearing at the Supreme Court's Criminal Division for Holders of Political Positions on June 13 or being absent without explanation or absent with his lawyer's explanation. It is a pure drama of suspense that film producer Alfred Hitchcock would have loved to make a film about.

It is likely to be a Hobson's choice for our former premier, whose destiny will again be challenged on June 13. In hindsight, the saying of "silence is golden" could have been a better choice for him on the day of being in Thailand on Aug 23, 2023, after 15 years in exile, as he previously pleaded to spend the rest of his life with his grandchildren.