The Finance Minister recommended that the MAI have a separate board of directors from that of the SET. He also suggested that the MAI board members should be selected from the present-day generation of businessmen who are enthusiastic about the modern business world and can make astute decisions. He also suggested that the MAI should aggressively compete with the SET, and clearly differentiate itself so as to create its own distinctiveness of being the market in Thailand for innovative, dynamic, and knowledge-based enterprises.
In addition, the MAI needs to provide an incentive package for potential listed companies, such as privileges from related organizations. For example, close cooperation with the SME Bank could help promote the MAI, with the bank holding various supporting activities of its own. If the above-mentioned types of changes can be achieved, he believes the MAI will be able to compete with the SET within 2 years.
“The MAI must attract potential companies to list. The size of the listed company doesn’t matter since many companies do not require much capital. What these small, opportunistic companies need are fresh, innovative ideas to run their businesses; especially companies like the new export firms. The MAI also has to structure its privilege package to act as a listing incentive. What is needed is a collective belief that the changes will be for the better. I believe that when the MAI gets stronger, more businesses will increasingly join in. The additional moves by all related organizations will help drive for even more and better changes,” the Finance Minister said.
Mr. Vichate said that the 5-year target of the MAI is to have a total of 500 listed companies. The MAI’s other goals are to build its brand, to build a base of quality investors, and to help create a generation of new entrepreneurs. The MAI’s ultimate target is to generate a total market capitalization of THB250 billion (approx. USD 6.1billion) by end-2009. The MAI’s target industries, which are also the country’s strategic industries, include 1) Food 2) Fashion 3) Automobile and Parts 4) Production 5) Tourism 6) Logistics 7) Retail and Wholesale 8) Packaging and Transportation 9) High Technology and Energy, and 10) Franchising and OTOP (One Tambon, One Product).
The SET Board of Governors has recently appointed the MAI’s advisory board, which is made up of nine proficient, prominent persons.
“From now on, the MAI will be clearly differentiated from the SET. It will be a market for emerging companies which possess high growth potential. Qualified companies are those with THB 20 mln. of paid-up capital and a 2-year track record, or with only a 1-year track record and no profits yet, but having at least THB1,500 mln.(approx. USD 36.6 mln.) worth of market capitalization. Currently, these new listing requirements are under consideration by the Securities and Exchange Commission (SEC), and are expected to be applied to newly-listed companies in 2005,” Mr. Vichate said.
To successfully reach its target groups, the MAI will develop a project to tap into the ‘MAI type’ entrepreneurs. It will accomplish this goal by first approaching the industries’ “stars” to list first. These “stars” will then serve as models for others to follow. The involvement of greater numbers of investment advisors and auditors will be encouraged. Additionally, the MAI will also continue to work closely with the SME Bank to help build or tap into these ‘MAI type’ entrepreneurs.
The MAI will also actively promote greater understanding and more active participation amongst both retail and institutional investors so as to increase trading liquidity whilst maintaining market stability.
The MAI will work closely with its network, namely, the Board of Investment (BOI), the Office of SMEs Promotion, numerous financial institutions, venture capital firms, the Institution of Certified Accountants and Auditors of Thailand (ICAAT), and many financial advisors. The new generation of entrepreneurs will then be able to grow into strong, quality companies which will be able to effectively access the capital market, prosper and eventually achieve international competitiveness.
