Thailand’s Long-Term Equity Fund Initiative

BANGKOK (Reuters) – Thailand’s government plans to establish a long-term equity fund to bolster the Thai stock market, as it has been the worst-performing market in Asia this year.

The fund may integrate with an existing Environmental Social Governance (ESG) fund, allowing investors to receive tax breaks for five years, according to Finance Minister Pichai Chunhavajira.

He stated that this initiative aims to alleviate selling pressure from long-term funds, which has negatively impacted the market. Further details are anticipated soon.

On Tuesday, the main stock index increased by 0.48%, but it has still declined by approximately 9% since the year’s start.

Pichai noted, “With the fund, investors who want to sell will reconsider their decision, as participation in the ESG fund offers tax benefits.”

Industry data indicates that there are around 188 billion baht ($5.52 billion) worth of long-term fund units available for redemption.

($1 = 34.07 baht)