Looking at the results of the meeting of the Thai Capital Market Development Committee What did the “magic” reveal?
On October 27, Mr. Arkhom Termpittayapaisith The Minister of Finance revealed that at the meeting of the Thai Capital Market Development Committee No. 1/2564 on Wednesday, October 27, 2021 via electronic media. There were representatives from both the public and private sectors involved in the capital market. attend the meeting The meeting acknowledged the progress report on the implementation of the Thai Capital Market Development Plan No. 3 (Year 2017 – 2021) at the end of Q3/21 and the progress report on the implementation of the money market measures. and the capital market in reviving the Thai economy (when the COVID-19 epidemic situation occurs), as well as approve the direction and direction of the next Thai capital market development plan. The key points can be summarized as follows:
1. Progress of the implementation of the Thai Capital Market Development Plan No. 3 at the end of Q3/21
The implementation of the Capital Market Development Plan 2020 consists of 7 main measures, 17 sub-measures, and 65 supporting work plans, divided into (1) funding sources for small and medium-sized enterprises (SMEs) / start-up enterprises; (Startup) and innovation (2) Fundraising for the country’s infrastructure (3) Increasing the competitiveness of the Thai capital market (4) Developing the Thai capital market as a regional link (5) There are plans to support the aging society (6) the development of the digital capital market and (7) the promotion of sustainable development.
2. Progress on the implementation of measures of money market and capital market in reviving the Thai economy (When there is an epidemic situation of COVID-19)
The meeting acknowledged the progress reports of agencies involved in the capital market and money market that have taken measures to restore the Thai economy from the epidemic situation of COVID-19, namely the Securities and Exchange Commission. (The Office of the Securities and Exchange Commission), the Bank of Thailand (BOT), the Office of Insurance Commission (OIC), the Stock Exchange of Thailand (SET), and the Federation of Thai Capital Market Organizations. (FETCO) can be summarized as follows:
2.1 Measures taken by the SEC Office has measures to help businesses facing COVID-19 problems in 3 areas:
2.1.1 Assistance to businesses facing COVID-19 problems: liquidity is added to businesses that are facing problems / assisting businesses that are already experiencing problems through various measures such as REITs with Buy Back Condition measures, Private REITs measures, High Yield Bond Fund measures. etc.
2.1.2 Opening channels and facilitating access to the capital market such as Facilitating investors in the account opening process as well as develop a standardized form and improve the rules for getting to know customers by electronic means, etc.
2.1.3 Strengthening and Resiliency Contributing to sustainability, for example, fundraising support that promotes social responsibility, community, environment, and reduces systemic risk, etc.
2.2 Implementation of Measures The Bank of Thailand has implemented measures to mitigate economic impacts and maintain financial system stability in two important areas:
2.2.1 Measures to enhance liquidity for the business sector such as (1) low-interest loan measures (soft loan)
(2) loan rehabilitation measures to enable SMEs to support their businesses and maintain employment under the COVID-19 epidemic (3) measures to support liquidity for institutions that provide assistance to bond funds (4) fund measures to maintain the liquidity of fundraising in the bond market, etc.
2.2.2 Measures to solve debt problems of the public and business sectors such as (1) the “debt suspension” project; (2) long-term sustainable debt restructuring measures for affected debtors; (3) measures to maintain Existing liquidity and new top-up, etc.
2.3 Measures taken by the Office of Insurance Commission have been revised the relevant rules. including issuing insurance measures To provide assistance and alleviate suffering to the people affected by insurance, consisting of citizens and operators, insurance companies and insurance intermediaries.
2.4 Measures taken by the SET are: (1) Measures to manage market volatility
(2) Measures that the SEC Office has approved for the SET to use temporarily to correct or mitigate the effects of market volatility and (3) stakeholder assistance measures, such as a reduction in fees for market participants. and adjusting the form of activities to be in line with business operations during the COVID-19 outbreak, etc.
2.5 Implementation of measures of FETCO has participated in the proposal of measures such as (1) measures to request for a waiver of conditions for cessation, postponement of contributions/contributions to the provident fund (2) measures to establish SSFX mutual funds, etc.
3. Guidelines and directions of the 4th Thai Capital Market Development Plan (2022 – 2027)
The meeting approved the direction and direction of the next Thai capital market development plan. which are in line with the global economic situation in all aspects as follows: (1) Promoting access to finance through capital market mechanisms. (Accessibility) (2) Increasing the potential and competitiveness of the Thai capital market Competitiveness (3) the use of digital technology for the capital market (Digital for Capital Market), (4) Sustainable Capital Market, and (5) the creation of long-term financial health covering the retirement age (Financial) Well-being)
In this regard, the meeting has approved the Office of the SEC to be the main responsible agency for the implementation of the Capital Market Development Plan No. 4 in the future.