The Capital Market Development Fund (CMDF) in collaboration with McKinsey & Company (Thailand) Co. Ltd., a global management consultancy Produced a white paper report Improving the Competitiveness and Efficiency of the Thai Capital Market, studying the opportunities and limitations of the Thai capital market structure in terms of competitiveness and efficiency to cope with changes and challenges. in technology, economy, society and environment nationally and globally
From the study, it was found that the Thai capital market is still the main mechanism that plays an important role in the development and driving of Thailand in a sustainable way. And in general, Thailand’s capital market has the potential to compete compared to ASEAN countries. It is also a source of long-term funding that promotes economic development and innovation. and is a source of information about savings and investments The Thai capital market benefits the country in many ways. May it help people who will join the aging society to save for retirement. to create an environment conducive to new businesses and small and medium-sized businesses (SMEs).
However, the cost of doing business in some types of capital markets, such as the cost of trading stock in the secondary market (with the current cost being the second highest in ASEAN Calculated excluding any relevant Financial Transaction Tax) or mutual funds. still higher than the ASEAN average As a result, Thailand’s capital market has to adapt to be more cost-effective.
In addition, this report also provides 10 additional policy proposals for the sustainable development of Thailand’s capital market in the future as follows:
1. Promote sustainable financing to help Thailand move towards zero-net carbon emissions : by stimulating green finance innovation in the Thai capital market.
2. Develop a pension fund to support an aging society: by supporting the development of the National Pension Fund.
3. Promotion of small and medium enterprises (SMEs / new businesses): through financial support. platform building consultation and fundraising agreements
4. Expansion of Digital Assets: Various applications should be explored. and build confidence in risk management
5. Improving financial literacy: through public-private partnerships. new investment projects and promoting investment awareness from an early age
6. Promoting investment from small investors: reducing the complexity of entering into investments. using digital technology to increase the number of retail investors in the Thai capital market
7. Attracting long-term investments from foreign institutional investors: creating a more open environment on par with regional leading countries. and have the infrastructure to support the new economic sector
8. Development of domestic institutional investors: Strengthen domestic institutional investors by diversifying their portfolio into more diversified asset classes.
9. Unlock Data Analytics : By investing in data standardization and investment data collection.
10. Attract and nurture talented personnel (Talent): By attracting personnel with the required skills to the Thai capital market. and upgrade personnel in the existing Thai capital market to obtain the expected skills.
Develop the Thai capital market in accordance with the approach mentioned above, along with maintaining the level of cost competitiveness. It is a recommendation from the study. so that the Thai capital market can build on past successes and create a Thai capital market that can meet the needs of the new generation Will actually create the future capital market of Thailand It needs serious support and cooperation from the public and private sectors of all sectors.
A detailed study report can be downloaded through the website www.mckinsey.com/featured-insights/ If you have any questions or queries You can contact us for more information through official LINE: @CMDF or by email: CMRIconnect@cmdf .or.th or aso_media@mckinsey.com.
