The Thai stock market has now stabilised and there is no need for additional measures to stimulate it, Finance Minister Pichai Chunhavajira said.
He made the remarks at Thailand's Capital Market Forum seminar held on Saturday at the Stock Exchange of Thailand (SET).
Mr Pichai said the stock market should be allowed to operate based on its fundamentals -- the basic principles of buying and selling shares -- and added that retail investors are now returning.
"The Thai stock market has now reached a steady state. Nothing can make people panic or flee the market.
"Measures will be introduced only when necessary," said Mr Pichai, who is also Deputy Prime Minister.
He said the SET Index had dropped from 1,700 points two years ago to around 1,200 at present.
While the stock market initially plunged more sharply than those in other countries earlier this year, it later rebounded, particularly after the US imposed reciprocal tariffs on other nations.
Mr Pichai attributed part of the SET's decline to investor concerns the structure of listed companies is ill-equipped to meet future demands.
"Their production structures and product offerings cannot adequately respond to future needs -- this issue must be addressed," he said.
He also pointed out that foreign capital inflows have increased, contributing to the appreciation of the Thai baht.
"This shows that people view Thailand as a safe place to park their funds and receive acceptable levels of return," he said.
Despite the good news on the share market front, Mr Pichai said the economy is in urgent need of structural reform -- a process he said is long overdue.
He said investment over the past decade has declined significantly, falling from 40% of GDP to just 20%.
He also stressed the importance of improving efficiency in the agricultural sector to boost farmers' incomes.
Agriculture currently contributes only 8% to national income, he said.
Regarding industry, particularly the automotive sector, Mr Pichai said it is crucial to support the traditional internal combustion engine industry while also promoting the electric vehicle (EV) sector.
The SET says the Thai stock market is expected to continue growing next month, supported by easing global trade tensions, a downward trend in global interest rates, and inflows into Thai ESG Extra (ESG X) funds.
Soraphol Tulayasathien, Senior Executive Vice-President at the SET, has previously said the index is projected to perform better next month, following a 7.06% month-to-date gain. The Thai index has contracted 13.3% so far this year.
Mr Soraphol said several positive factors -- including easing geopolitical tensions -- are attracting fund inflows into both Thai bonds and equities.
He added the newly launched Thai ESG X funds, along with the anticipated rollout of government stimulus measures, should help lift the SET.
Excluding energy stocks, which have been affected by the global economic slowdown, other listed companies are expected to report improved first-quarter results year-on-year, he said.
Mr Soraphol also said investors are pulling out of US treasuries -- once viewed as safe-haven assets -- amid growing concerns that the US economy may be impacted by ongoing trade disputes.
Pichai: Retail investors returning