The Federation of Thai Capital Market Organizations (Fetco) is preparing to meet with Prime Minister Srettha Thavisin on Sept 25 to propose measures to support the Thai capital market towards long-term sustainability.
Chairman Kobsak Pootrakool said Fetco will ask the Ministry of Finance to consider a new tax savings fund as the Super Saving Fund (SSF) is set to expire next year. Mr Srettha is also minister of finance.
"The existing SSF funds are not so successful in stimulating savings and investment because the investment period is too long. If the government wants to renew this type of fund, it is necessary to adjust the details to suit the current situation and have incentives for people to invest in long-term savings," Mr Kobsak said.
Fetco wants the new tax saving fund to replace SSF when it expires next year, alongside tougher penalties for those who commit corruption and fraud through the Thai capital market, and the implementation of the government's capital market development plan for sustainable growth.
The Association for Investment Management Companies (AIMC) has worked on a new type of tax-saving fund to replace the SSF. The association will present it to the prime minister and the Finance Ministry for consideration, Mr Kobsak added.
The next issue is the proposal to increase the punishment for those who commit wrongdoings within listed firms. Many investors recently lost confidence in terms of investing in the country's capital market following cases of fraud pertaining to More Return and Stark Corporation.
"The punishment for such fraudsters is not severe and the law enforcement is quite slow," Mr Kobsak acknowledged.
Fetco would like to see harsher penalties for offenders alongside stronger supervision by regulators, for example, by using AI technology to detect potential wrongdoing to ensure efficient examination and immediate verification if any doubts arise, he said.
In addition, the association wants to wants to hear about the government's vision and plan in terms of developing the capital market to grow sustainably. Then the private sector would be able to work on their plans accordingly.
Seven Fetco members will meet Mr Srettha on Sept 25. They are: AIMC, the Association of Thai Securities Companies, the Investment Analysts Association, the Stock Exchange of Thailand, the Thai Bond Market Association, the Thai Investors Association, and the Thai Listed Companies Association.