THE NEW chief of the Stock Exchange of Thailand said yesterday that the Thai bourse is expected to see its market capitalisation equal to that of the Singapore's exchange within 2023, provided the SET Index maintains its current uptrend with continuing entries of new listings.
Pakorn Peetathawatchai, the 13th president of the SET, said the continuous growth of the Thai exchange is the result of the entries of 40 new listings per year with a combined market cap, based on initial public offering prices, of Bt250 billion in addition to the capital increase of Bt250 billion. The SET Index has risen an average of 10 per cent annually.
If the Thai bourse is able to maintain its growth at this level, its market capital can be equal to that of the Singapore bourse in a few year, Pakorn said.
In the past five years, the Thai exchange's market cap stood at US$350 billion, while the total of the Singapore exchange amounted to US$700 billion.
Currently, the total capital of the Thai exchange stands at $550 billion conpared to $850 billion at its counterpart in Singapore.
He said the SET is confident of maintaining the private sector's fund mobilisation in the capital market in the next five years.
Foreign companies will likely be allowed to raise capital in the Thai exchange through various means in order to create supply, he said.
Pakorn said that he would develop the stock market by focusing on "Creating Partnership Platform to Drive Inclusive Growth" in four dimensions.
By creating a turning point, innovation and technology will be adopted for the exchange’s end-to-end services with information exchange which will allow capital markets to cope with technology disruption and changes in customers’ needs, while infrastructure such as a system for mutual fund intermediaries, payment, know-your-customer (KYC) will be set up as standards.
To foster the bourse’ adjustment, SET and capital market human resources will be well equipped for higher efficiency and new businesses. Regulations and work procedures with supervisory units will also be reformed for more flexibility and less obstacles in doing businesses and investment.
Thai capital markets will also be promoted as “Market of Well-being” in the global stage, given Thailand’s strength in infrastructure, transportation, tourism and services, medical services and food businesses.