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PM Office deputy spokesman Chodechai Suwannaporn said on Monday that the listing of the SET would boost confidence among private companies.

"If this is successful, it would send a positive psychological impact to the Thai economy. Private companies would seek a listing as the SET itself also raises funds in the market. This would make the capital market's operations more transparent," he said.

Chodechai's comment came after a meeting with a working committee comprising representatives from the SET, the Fiscal Policy Office, the Securities and Exchange Commission, and the Association of Securities Companies.

Discussed at the meeting was a study by the Asian Development Bank (ADB) which ranks Thai capital market at the bottom among regional markets. With a weight of 1.5 per cent in the Morgan Stanley Capital Index, the Thai market is losing its attraction in the world arena.

The ADB also remarked that there is a slim chance for the Thai market to seek new listings as most businesses are family-owned and prefer bank loans to fund raising on the market.

"Notably, in the past three years, the market welcomed about 10 companies per annum, which is a very low figure. Part of the problem is some industries like alcohol could not seek a listing and that forced Thai Beverage to seek a listing in Singapore," Chodechai said.

- The Nation