SET looks to strengthen capital market
In its forty eighth yr of operation, the Inventory Trade of Thailand (SET) is enhancing the bourse’s competitiveness by offering extra funding alternatives associated to the brand new financial system, international shares, and digital property to draw a brand new era of traders.
SET president Pakorn Peetathawatchai stated the Thai capital market’s energy relies on its excessive liquidity, massive and medium-sized corporations within the meals and tourism business, and a rising investor base.
The bourse must make funding extra handy, easy and reasonably priced to keep up its energy and relevance as a key driver of the Thai financial system, he stated.
Prasarn Trairatvorakul, chairman of the SET, stated there are 5 challenges for the Thai financial system, each within the quick and long run: geopolitical dangers, the pandemic, digital disruption, the proliferation of digital property, and sustainability.
He stated in a globalised world, conflicts in any nook of the world can put the worldwide financial system in a rut. The worldwide pandemic additionally continues to punish economies around the globe, stated Mr Prasarn.
The SET is launching the LiVE Platform this yr to extend entry to public funding for small and medium-sized enterprises (SMEs) in addition to startups, serving to them to outlive financial slumps, he stated.
Digitalisation and digital disruption current each alternatives and challenges for the capital market, stated Mr Prasarn.
He stated the Thai capital market ought to give attention to cybersecurity as a result of the bourse’s digitalisation course of could make the market susceptible to cybercrimes, which may harm the organisation’s popularity in the long run.
One aspect impact of digital disruption is the proliferation of digital property and distributed ledger expertise or blockchain, that are gaining acceptance from private and non-private monetary establishments.
Mr Prasarn stated the brand new class of property and monetary improvements present each alternatives and dangers for traders and the monetary sector.
The SET and regulators ought to discover methods to stability these dangers with out hindering the event of such improvements, he stated.
The SET is getting ready to launch a digital platform to make use of digital property in fundraising and buying and selling, specializing in each utility and funding tokens with underlying property, stated Mr Prasarn.
He stated the bourse wants to advertise borderless funding by growing an internet utility course of, providing merchandise that permit funding in international equities comparable to fractional depositary receipts (DRs) to draw extra traders.
The SET plans to create a one-stop streaming app to compile funding in numerous merchandise comparable to digital property and conventional property, together with international shares through fractional DRs in baht forex.
The final problem Mr Prasarn recognized includes guaranteeing compliance with environmental, social and governance (ESG) standards, which is a prerequisite for sustainable growth.
He stated all stakeholders must take the ESG idea under consideration when working and investing in companies.
In accordance with Mr Pakorn, the Thai inventory market has been a regional chief in ESG for seven consecutive years, with many listed corporations evidently dedicated to ESG standards.
Mr Prasarn stated the Thai capital market has seen vital progress each as a supply of funds and an funding channel.
To keep up its position as an financial driver, he stated the SET must be adaptable to any challenges and work to revamp the organisation in order that it may well survive any crises.
Paiboon Nalintrangkurn, chairman of Federation of Thai Capital Market Organizations, stated the SET wants to draw extra SMEs and new financial system and tech corporations to record on the capital market so as to promote a technology-driven financial system.
The SET must difficulty guidelines that facilitate itemizing for these smaller corporations and modify to modifications in investor behaviour by offering and creating numerous merchandise to forestall capital from exiting the Thai inventory market, he stated.
Digital transformation and digital fundraising are additionally crucial to draw younger traders to conventional property, within the type of high-growth tokens just like cryptocurrencies, stated Mr Paiboon.