INVESTMENT gurus want the next government to promote savings for capital-market investment in order to generate living expenses after retirement.
Paiboon Nalinthrangkurn, chairman of the Federation of Thai Capital Market Organisations (Fetco), expected the new government would set up a national pension fund for compulsory savings, while supporting a new type of fund as a replacement for the long-term equity funds (LTFs) that will run out at the end of this year.
While trade associations should be encouraged to invest in the Thai capital markets for higher returns than bank deposits, electronic transactions such as e-letters for meetings and video conferences should be allowed for convenience, he said.
A bill on financial technology may be required to make e-transactions legal and allowed as court evidence.
Another bill on trusts for personal asset management may also be needed to allow local financial institutions to manage personal assets, he said.
Given its expertise, Fetco will seek a role on the next government’s economic |committees to help drive the Thai economy, he said.
Sombat Narawutthichai, secretary-general of Investment Analysts Association, also urged the new government to promote efficient savings among the public, such as investing in capital markets for long-term return.
Currently, about 1 million people or less than 2 per cent of Thailand’s population invest in the capital markets.
Vasin Vanichvoranun, chairman of the Association of Investment Management Companies, also wants the new government to play a larger role in pushing for retirement savings through investments, as well as promoting compulsory savings through the national pension fund.
He also supports continuation of government support for a new type of fund to replace LTFs. Vasin also expected changes in investment conditions to cope with the current situation.
Pattera Dilokrungthirapop, chairperson of Association of Thai Securities Companies, supported Fetco’s call for the next government to promote higher savings and to provide investment-related knowledge to people at all ages, particularly children and elders who have never been involved in these matters.
“We want the government to see the importance of people-sector investment, regardless of what type of investment. The government may have to provide tax incentives as a means to push for public investment,” she said.