Thailand’s Market For Alternative Investment To Focus On Building A New Generation Of Entrepreneurs Operating With Transparency And Good Governance, To Be Role Models

The President of the Market for Alternative Investment (mai), Mr. Vichate Tantiwanich, disclosed that the mai grew significantly during the past year. There were 14 newly listed small and medium enterprises (SMEs), which collectively raised approximately THB 1,457 mln. worth of funds through the mai. In 2005, the mai plans to increase the number of listed firms by 30 to 40. The desire to list is strong, with as many as 71 potential companies showing their interest.

“The mai has developed strategies to encourage potential companies to list by 2005-2006. Meanwhile, for existing listed companies, the mai will help increase their attractiveness. A club for the SME entrepreneurs will be established to help these SMEs form alliances and share their views and experiences. This new generation of young and energetic entrepreneurs will be operating businesses with high growth potential. Their management styles will also serve as role models for others to follow. Their businesses should be operated with transparency and fairness,” said Mr. Vichate.

The mai will assist the fundraising process of these businesses from their beginning. It will also work closely with its network organizations, for example, the Board of Investment, the Office for SMEs Promotion, the SME Bank, as well as the commercial banks, to smooth the progress of listing SMEs so as to make it more convenient and quicker.

“In order to attract more investments to the mai, we will encourage brokerages to produce more research reports on mai-listed stocks and distribute those analyses to a wider audience. The investors will then have access to more beneficial information for making their investment decisions. With regards to investor promotion, the mai plans to hold discussions with institutional investors to establish a fund for investing in the SME businesses with the greatest growth potential. We expect the idea will be well received by the fund managers.

“In 2004, mai-listed companies grew in line with the Thai economy. Their Q3/2004 performances all recorded profits. Overall, the mai market saw a 66% jump in net profits in Q3/2004 when compared to the same period last year. Hence, the mai market has become increasingly attractive as an investment option,” Mr. Vichate noted.