Thai Bourse Rolls Out 2016 Plan To Build New S-Curve For Quality Growth

The Stock Exchange of Thailand (SET) has revealed its 2016 plan towards sustainable growth, focusing on expanding investor base and enhancing quality of listed firms. The bourse was ready to follow government economic policies by facilitating private sectors for both small and medium-sized enterprises (SMEs) and qualified businesses to access capital market fund,  creating new “S-curve” by increasing product diversification and facilitating companies for fundraising in the region, while strengthening domestic institutional investor base and expanding retail investor base. Furthermore, SET will support the quality of listed firms to be enhanced with consideration on environmental, social and governance (ESG) aspects.

In 2015, SET proved a remarkable success among ASEAN, in both quality and quantity aspects, covering (1) average daily trading value at THB 44.53 billion (USD 1.24 billion) (as of December 16, 2015), the highest in ASEAN for four consecutive years (2) market capitalization for initial public offerings (IPOs) at THB 297 billion from 42 newly listed  securities (3) announcing a list of Thailand Sustainability Investment (THSI) consisting of 51 Thai listed firms (4) Dow Jones having included 13 Thai listed companies in the Dow Jones Sustainability Indices (DJSI), the highest number of additions in ASEAN (5) enhancing corporate governance (CG) standard among Thai listed companies, resulting in the average CG score of Thai listed companies in ASEAN CG Scorecard topping off all other ASEAN companies (6) The success of the merger between Thailand Futures Exchange pcl (TFEX) and The Agricultural Futures Exchange of Thailand (AFET).

SET Chairman Chaiyawat Wibulswasdi stated, “Our key direction is the road towards stability, wealth and sustainability. SET sets to become a Sustainable Stock Exchanges (SSE) according to the UN Sustainable Stock Exchanges (UN SSE) initiative, keeping pace with the government economic development policies, while promoting financial literacy among the Thai people. SET plans to help SMEs and family businesses to access fund, as such benefitting the Thai economy and society. On the whole, SET’s business operation will be more internationalized, multi-dimensions in depth, width and qualitywise, providing maximum benefit to all capital market stakeholders, society and the country.”   

SET President Kesara Manchusree revealed the 2016 strategic plan saying, “Next year we will focus more on quality development along with higher economic growth expectations of the Thai economy than in 2015. As SET has been committed to supporting the government economic policies, we will promote and strengthen SMEs as well as solidifying domestic institutional investors specifically to create new S-curve for new businesses in the Thai capital market. On top of this, SET will gear up to enhance quality listed firms, diversifying new instruments and services, while increasing liquidity for investors , making the Thai capital market more internationalized and appealing.”

In 2016, SET will implement six key elements of the strategic plan, to achieve the new “S-curve”, covering:

1. Increase number of newly listed firms, enhance listed firm quality and strengthen SMEs: In 2016, SET plans to expand market capitalization for IPOs by THB 270 billion via industry leaders, state enterprises, foreign companies (from GMS and others), help SMEs to access fund and provide them with business opportunities, in addition to increasing fundraising from existing listed securities by THB 255 billion. Furthermore, SET will keep enhancing all processes to promote securities quality from improving IPO fundraising process, trading and intermediaries to market surveillance, as well as promoting quality according to ESG indicators and grooming potential listed firms to global indicators DJSI.
2. Increase diversification of products and services: SET plans to launch new securities index, electronic gold futures trading, and others. As a connector, SET will continue to be a strong engine to drive Greater Mekong Subregion (GMS) capital markets development especially the educational enhancement for financial market professionals.
3. Solidify domestic institutional investor base: Responding to the aging society, jointly with asset management companies, SET will further promote retirement plan among Thai people through provident fund and mutual fund, as well as strengthening fund service platform to serve higher demand for mutual fund while providing new channels for investors. In line with the digital economy, SET will also promote digital selling tools as a new financial technology.
4. Enhance quality and expand investor base: SET will continue to join forces with partners to expand retail investor base and develop skills of capital market professionals, particularly promoting new pattern of financial technology to serve young investors, as well as developing marketing channels to expand investor base in various provinces, enhancing connectivity to GMS through intermediaries. SET aims to increase the number of retail investors by 110,000 persons for securities; 10,000 for derivatives and 180,000 for online channel investors
5. Groom capital market professionals and build infrastructure: SET will further groom new professionals entering the capital market and provide intensive knowledge for existing professionals, and will also digitalize capital market infrastructure and processes to increase efficiency of securities trading transactions.
6. To become “Employer of Choice”: SET has recruited, developed and retained employees with potential to grow along their career path with leadership to help drive the Thai capital market towards sustainability.