Mr. Vijit said that previous vision statement was based on the mission to be "a stock market that supports the country's development and possess an international competitive edge". The SET has, for a period, been operating in line with this path, but it will thus adjust this vision to concentrate more on its new long-term mission, that is:
"Determined to be a liquid secondary market for quality and diverse securities issued as fundraising instruments so as to establish confidence amongst all stakeholders. This will be achieved by emphasizing:
- Providing a trading system for securities as well as a support system that is reliable and in line with international standards through the application of efficient technology.
- Offering fast, accurate and complete information disclosure as well as educational services on a wide scale.
- Operating by focusing on increasing efficiency in speed, quality, cost-effectiveness, and prudent risk management of the organization itself, its affiliates and related parties.
- Performing supervision duties in line with intentionality of regulations based upon ethical principles."
Mr. Vijit went on to say that he would continue working under the framework of the Thai Capital Market Development Master Plan in six areas:
- forging ahead to be a good governed capital market
- enhancing quantity and quality of investment instruments
- enlarging and strengthening the investor base and better balancing its composition
- strengthening the intermediary institutions
- adjusting the supervisory structure, and
- enhancing the efficiency of trading and its connected systems.
"Although all areas are equally important, there are two areas we're determined to stress. Creating understanding amongst savers and investors will permanently strengthen the country's capital markets. This will work from primary school level, up to high school and college and will include the general public. The capital markets will develop when more savers and investors know how to allocate their savings into bank deposits, how to invest in financial instruments, and save through mutual funds suitable for their age, as well as understand the basics of income generation, risk, ability to make investment choices and be able to choose good-governed and professional service institutions.
For enhancing quantity and quality of investment instruments, it is crucial that we provide alternatives as equity products for the public at large during periods of strong economic growth coupled with savings deposits providing low returns. This is our core mission since it not only provides more alternatives for savers and investors, but it also strengthens the capital base for companies complying with appropriate accounting systems and tax payments," the SET Chairman said.
The SET Chairman also said that the SET's structure would be adjusted accordingly to focus on investor education. This will be done to enable the SET to operate in line with policies and missions more efficiently and flexibly. Presently, the SET's structure is divided into six lines of work (32 departments) namely the Capital Market Opportunity Center (CMOC) and Market for Alternative Investment (MAI), Market Regulation, Information Technology, Finance and Administration, Corporate Compliance, and Research and Development. The SET also has four subsidiaries pursuing their specific missions. These are the Thailand Securities Depository Co., Ltd. (TSD), Thai NVDR Co., Ltd., SETTRADE Dot Com Co., Ltd., and Family Know-How Co., Ltd.
"We will separate investor-education work from the CMOC and MAI to create a new "Investor Education Line" comprising four departments: the Thailand Securities Institute (TSI), the SET-Junior Achievement Thailand (SET-JAT), University Networking Center, and Publications Department. These departments were previously under the CMOC and MAI with four other non-education related departments-the Issuer Marketing Dept., Investor Marketing Dept., Member Services Dept., and Corporate Communications Dept.," Mr. Vijit said.
……/3 The SET Chairman insisted that he is ready to lend a lot of support for the development of the capital market. As evidence of his commitment he's supporting the establishment of an agricultural futures market by lending 10 staff to work full-time and ask for cooperation from other units in preparing for the inauguration of the futures market. Besides, the SET will also support the establishment of a market for financial derivatives. It has set aside a budget worth 300 million baht as well as provided system support and personnel.
In the meantime, the SET will support the system development of corporate and government bond trading for retail investors. This has now been completed, and the system will be ready to begin trading within this year. The SET will support and promote saving through mutual funds as well. It has approved 600 million baht worth of funds to invest in 13 mutual funds co-managed by investment management companies and securities companies.
Mr. Vijit said that: "Now is not the time for the SET to focus on improving profits. Rather it will make full use of its income to help the market develop quickly. Currently SET revenues are derived from the listed securities, trading fees, information fees, and income from subsidiaries and investments."
"In 2002, the SET's total income was 1,430 million baht and its total profits were recorded at 464 million baht. The first half of 2003, the Exchange recorded total revenues of 732 million baht and total profits of 205 million baht. Based on this it is reasonable to anticipate that profits for 2003 will be satisfactory. Equity of the SET stood at 12,649 million baht at mid-year 2003, while unrealized gains from investment surpassed 400 million baht."
The SET Chairman stressed that he will ensure that the management manages so well that they can allocate income to develop the capital market overall. The management is preparing a business plan and budget to propose to the SET Board of Governors in a meeting at the end of this October.
