BANGKOK, Nov 13 (TNA) – Prime Minister Abhisit Vejjajiva on Thursday voiced confidence the market capitalisation of the Stock Exchange of Thailand (SET) would increase to an equivalent of 130 per cent of the country’s gross domestic product (GDP) in the next five years as targeted in the 2010-2014 Thai capital market development plan.
Presiding over SET in the City 2009 in Bangkok being held at Siam Paragon, a shopping center and department store, Mr Abhisit said what the government is worried about now is that the Thai capital market is smaller than those of many other countries.
Because of this, the prime minister said, only small numbers of institutional investors are interested in investing in SET, and fund-raising costs are high.
To cope with the problem, SET has developed a 2010-2014 capital market development plan, which has already been approved by the economic ministers.
The objective of the plan is to increase the market cap of SET from 80 per cent of GDP at present to 130 per cent of GDP within five years, and increase the number of people investing in the market and financial products and services.
In addition, the plan is being implemented with the aim of reducing the funding costs of listed firms to ensure they are able to compete with foreign counterparts, improving the rules and regulations governing investment, and upgrading the stock market.
“Economic competition is set to intensify,” Mr Abhisit warned his audience. “So, the Thai capital market needs to be developed and improved. To reach the target, the capital market committee has worked out a clear plan to develop the market with the Capital Market Development Fund acting as the main agency to supervise the development,” said the premier. (TNA)
Business News : Last Update : 08:30:21 13 November 2009 (GMT+7:00)
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