On December 7, Thai Prime Minister Srettha Thavisin unveiled the Thai government's three key initiatives to boost capital markets to adapt to changing global investment trends.。

This year, the Stock Exchange of Thailand (SET) index has fallen by about 15%, with foreign investors selling off about 175 billion baht (about 49.$300 million) in Thai stocks。

At the Securities and Exchange Commission of Thailand (SEC) 2024 Strategy Seminar, Prime Minister Srettha acknowledged the decline in the value of Thai stocks, but said the long-term outlook remained bright.。

Prime Minister Srettha said: "Thailand's capital markets are experiencing short-term challenges, with the volatility of the global situation and the downturn in investor confidence leading to a significant decline in stock prices, but the long-term fundamentals of the capital markets remain solid and resilient.。"

The Thai government's research has found that digitalization and sustainable development affect the entire capital market, the overall economy and the well-being of the people, coupled with the consideration of the current domestic capital market, so the government believes that it is necessary to develop strategies for the capital market and promote foreign investment, and wants to focus on digital development and sustainable economic transformation.。

At the meeting, Prime Minister Srettha announced the following three major initiatives:

First, attach great importance to attracting foreign investment and promote the capital market to become a regional investment destination in various industries.。

• accelerate the negotiation and expansion of free trade agreements and open up new markets;
• Strengthening economic cooperation with other countries, particularly in Europe, the Middle East and Africa;
• Simplify business procedures, optimize Thailand's business environment and attract foreign investment into Thailand;
• Regular roadshows are held to introduce investment information on the Thai stock market and enhance foreign investors' trading confidence.。

Second, shift the focus of government work to sustainable development。

• Encourage all sectors to contribute to the achievement of the United Nations Sustainable Development Goals (SDGs) towards "carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065";
• Encourage capital markets to establish mechanisms to enable enterprises to have sufficient funds to transition to environmentally friendly practices.
• Providing small businesses with the knowledge, technology and capital to prepare for future environmental crises。
• Issuing at least 30 billion baht of green bonds to raise funds for the Sustainable Development Goals;
• Development of a "Thailand Green Taxonomy" programme for environmental and social investment in line with international standards。

III. Strengthening financing in the commercial sector。

• Focus on supporting small and medium-sized enterprises (SMEs) and digital economy start-ups, and encourage their R & D investment in high-tech industries, artificial intelligence and innovation.
• providing financial support for business operations and overseas expansion;
• Approval of the establishment of the Thai Environmental, Social and Governance (TESG) Fund to provide "green bonds" to investors;
• Seek to raise at least 10 billion baht through 25 Thai TESG funds。

It is understood that the TESG fund is a long-term investment program, investors can deduct the investment in the fund from personal income tax, at the same time, the fund also helps enterprises to create sustainable business opportunities.。

In addition to the above initiatives, the Thai government has also agreed in principle to reduce the barriers for enterprises to conduct digital asset business, in part to make competition in the digital asset market more equal.。

"The government believes that by reducing the financial burden on digital asset business operators, it will promote business investment in tokens and apply technology to the financing process, thereby promoting innovation in the business sector.。Prime Minister Srettha said。