Bangkok: The chairman of the Stock Exchange of Thailand (SET) has expressed confidence that the recent interest rate cut by the Bank of Thailand (BOT) will positively influence the country’s capital markets. He also discussed forthcoming initiatives to support family businesses on the exchange and potential legal reforms to expedite significant cases.
According to Thai News Agency, Professor Emeritus Kittipong Urapipatanapong, Chairman of the SET, highlighted the crucial role of family businesses in bolstering the Thai economy during his lecture at the seminar titled “The Successor: Sustaining Family Legacy.” He noted that approximately 900,000 family businesses are registered with the Ministry of Commerce, with over 500 of these businesses listed on the SET. He emphasized the importance of transparency and good governance, advising family businesses to maintain a single accounting book and consider merging similar businesses to enhance growth opportunities.
The SET is actively working to facilitate the int
egration of family businesses into the capital market by providing educational seminars and preparing an ecosystem conducive to market access. The exchange has also hosted international conferences and plans to continue these events next year. Collaboration with educational institutions is also underway to foster a learning network for family businesses, aiming for stability and longevity akin to century-old family firms found in other countries.
Regarding the BOT’s policy interest rate reduction, the chairman believes it will positively affect small and medium enterprises (SMEs) by improving lending conditions and boosting the performance of listed companies in the upcoming quarter. He anticipates a positive stock market trajectory, supported by a 150 billion baht fundraising initiative from Vayupak Mutual Fund 1, barring unforeseen circumstances. However, he cautioned investors to remain vigilant, considering ongoing global issues such as the Middle Eastern conflict and the trade war, though he downplayed
the potential impact of the US presidential election on Thailand.
In terms of regulatory enhancements, the SET has collaborated with the Anti-Money Laundering Office and the Public Prosecutor to strengthen oversight and transparency. There is a proposal under consideration to allow the Securities and Exchange Commission (SEC) to independently file lawsuits in critical cases to streamline and expedite legal processes, potentially reducing case handling from 2-3 years to 6 months to a year. This reform would necessitate an increase in specialized personnel or the potential recruitment of public prosecutors.