Capital market transformation targets foreign investment

Regulatory reforms and a sturdy supply chain are expected to enhance global allure, writes Nuntawun Polkuamdee

Thailand’s capital market is undergoing a strategic transformation aimed at restoring its global appeal, as policymakers and market operators pivot towards high-growth “S-curve” industries such as electric vehicles (EVs), healthcare, food technology, and data centres over 2-3 years.

Long regarded as one of Southeast Asia’s key equity markets, Thailand continues to benefit from strong economic fundamentals and regional stability. The market remains a leader in trading liquidity within the region.

However, investor interest has softened in recent years, mirroring broader regional trends, as global capital has rotated aggressively towards artificial intelligence (AI) and deep-tech sectors that are seen as the primary engines of future growth.

Despite this shift, traditional industries often referred to as the old economy remain critical pillars of the global economic system. In Thailand, these sectors continue to demonstrate resilience, underpinned by solid fundamentals and sustainable growth trajectories.

Many legacy businesses are already transitioning, integrating digital technologies, AI and innovation to remain competitive in an increasingly tech-driven world.

Against this backdrop, Thailand is recalibrating its capital market strategy to align with evolving global investment themes and accelerate its transition towards a digital economy.

Regulatory Reforms

Asadej Kongsiri, president of the Stock Exchange of Thailand (SET), has outlined a multi-pronged strategy to enhance the market’s competitiveness and attract foreign investors. Central to this effort is regulatory reform, with both the SET and the Securities and Exchange Commission working to introduce more flexible listing requirements tailored to emerging industries.

These reforms are designed to accommodate high-growth sectors such as EVs, data centres, and the broader digital economy, while also positioning Thailand to become a regional hub for healthcare and food technology — industries where the country holds strong competitive advantages.

In addition, authorities are considering easing profitability and track record requirements for new economy firms, recognising that many high-potential startups may not generate profits in their early stages. Shortening track record criteria and allowing pre-profit companies to access capital markets could significantly broaden the pipeline of innovative listings.

Luring Foreign Investment

A key pillar of the strategy is to encourage foreign companies, particularly those investing in Thailand under Board of Investment incentives, to list on the Thai stock exchange. This includes EV manufacturers and other strategic industries establishing production bases in the country.

Foreign firms would have flexible listing options, including listing locally incorporated subsidiaries or pursuing secondary listings of parent companies. Such measures aim to deepen Thailand’s capital market while providing local investors access to global growth stories.

Efforts are also underway to streamline initial public offering approval processes, reducing time-to-market through closer coordination with regulators. For large foreign state-backed enterprises such as Chinese EV companies, Thailand is exploring government-to-government frameworks to facilitate listings and strengthen bilateral economic ties.

Structural Strengths

While Thailand may not be at the forefront of cutting-edge technologies such as AI or semiconductors, it holds a strong position within global supply chains — an increasingly important factor for investors seeking diversification amid geopolitical uncertainty.

The country’s economic strengths, particularly in food, healthcare, tourism and hospitality, provide a solid foundation for future growth. These sectors not only offer resilience, but also align with global trends such as sustainability, wellness, and demographic shifts.

Healthcare and food technology are emerging as high-potential S-curve industries. Thailand’s established expertise in these areas positions it to outperform regional peers and attract sustained investor interest, said Mr Asadej.

“Food security is becoming a defining global trend. Amid rising geopolitical risks and conflicts, food-related industries could become the next new sexy sector for capital markets, if supported by the right policies,” he said.

In addition, the SET launched its Jump+ initiative designed to support listed companies in scaling and expanding their businesses across all dimensions. Participating firms receive funding from the Capital Market Development Fund.

A total of 143 companies joined the programme in the first phase, and the bourse expects strong investor interest driven by greater transparency and clear three-year business roadmaps.

Diversified Market

Thailand’s equity market is becoming more diversified, with the healthcare, wellness and food sectors playing an increasingly prominent role. This diversification helps ensure that investment opportunities are not overly concentrated, making the market more attractive to global investors seeking balanced exposure, said Mr Asadej.

Thailand’s strategy reflects a broader ambition: to reposition itself as a future-ready investment destination that bridges the old and new economies, he noted.

By combining regulatory reform, targeted industry promotion, and structural economic strengths, the country aims to bring its capital market back onto the radar of global investors at a time when geopolitical uncertainty and technological disruption are reshaping investment landscapes worldwide.