Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Capital Market  >>   Thai bourse needs reform
NEWS UPDATES Asean Affairs           9   August  2011

Thai bourse needs reform

Related Stories

July 16, 2011
Thai exchange to meet international standards

July 1, 2011
Thai market driven by politics

June 17, 2011
Domestic and international events affect Thai bourse

June 14, 2011
Thai SEC investigates securities firm

June 3, 2011
Thai political parties pitch stronger markets

May 2, 2011
Thai bourse to add extra hour

March 5, 2011
Algorithmic trading arrives in Thailand

January 29,2011
Thai gold firm plans listing

The Thai capital market has improved considerably in recent years in market liquidity, products, governance or investor education.

But in other areas, the market remains woefully behind. While mutual and provident funds have grown rapidly, the active investor base remains tiny relative to the country's population. The Stock Exchange of Thailand is still disproportionately led by energy and banking stocks, and all too many companies still pay only lip service to investor relations, governance and corporate social responsibility.

SET president Charamporn Jotikasthira warns that time is running out for Thailand to play catch-up to best international standards, particularly in areas such as information technology, a critical element in today's world where computers move billions of dollars in less than an eyeblink.

"The global exchanges are faster than ours by a factor of 500.," he said. Thailand's capital markets are due to be liberalised starting next year, with commission fees made freely negotiable and brokerage licences open for new applicants.

The SET will also lose its longtime monopoly as the country's securities exchange, and the move toward regional integration means that global investors will soon be able to trade Thailand's top stocks from their own brokers in Singapore or Kuala Lumpur.

Mr. Charamporn said the prospect of new foreign competition in the Thai capital market was a powerful incentive for the SET to reform or face a declining market share in the future, adding that London's stock exchange saw its market share fall by as much by half with the entry of new competition.

The SET has already set a target of July 2012 for the launch of a new, modernised trading structure, putting pressure on brokers to adjust by the end of the year.

"Regardless of whether demutualisation moves forward or not, we have to do business as normal. You need to continuously adjust to remain competitive," Mr Charamporn said.

"The main difference is that if we don't demutualise, it will be more difficult, since we will have to raise the funds [for reforms] somewhere else."

Regionalisation and the continued growth of the Asian economies is another trend pushing the SET to evolve.

Thailand's capital market has over the past four decades evolved steadily from a vehicle to raise domestic capital for domestic investment then later to attracting foreign capital to invest in local companies.

More and more, companies are tapping the Thai exchange to facilitate overseas investment, although numerous obstacles remain.

Mr. Charamporn said that ultimately, the capital market must evolve to consider supporting "out-out" investment, playing the role as a truly international financial hub similar to Hong Kong or Singapore.

But achieving this goal would require the establishment of supporting infrastructure, such as investor-friendly banking and foreign-exchange regulations.

Transaction costs in Thailand remain uncompetitive for global investors. An investor in Singapore, for instance, might pay a spread of 50 basis points and a brokerage fee of 10 points for a cross-currency investment, or perhaps half the cost of the same transaction in Thailand.

"We have never really considered what is needed to support out-out transactions, where foreign investors use the local market as an intermediary to invest elsewhere," Mr. Charamporn said. "We have a large expatriate community here. The potential for private banking and wealth management is quite high. But we need a clear policy and action plan."

Policymakers looking to the future need to "raise the flag" today and consider the taxation, settlement, legal and reporting obstacles currently impeding growth of the market, he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    9  August  2011 Subsribe Now !
• Graft case arrest grips Indonesian politics  Subcribe: Asean Affairs Global Magazine
• Indonesia watches market volatility 
Asean Affairs Premium
• Ventiane is “booming” 
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysian currency to strengthen
• Aquino challenges insurgents
• Thai bourse needs reform 
• “New city,” plan shot down by BK governor
• Inflation continues to rise in Vietnam

Asean Analysis    9  August  2011

Advertise Your Brand
• Asean development spreading to Laos Sponsor Our Events

Asean Stock Watch   August  2011

• Asean Stock Watch-August 9 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand