Bangkok: Thailand’s government plans to establish a long-term equity fund to bolster the country’s struggling stock market, Finance Minister Pichai Chunhavajira announced on Tuesday. The Thai stock exchange (.SET) has been Asia’s worst-performing market so far this year, prompting authorities to introduce measures to stabilize investor confidence.
Pichai said the fund could be incorporated into an existing environmental, social, and governance (ESG) fund, allowing investors to benefit from similar tax incentives for five years. “Investors who want to sell will stop and think whether to sell or not because they are in the ESG fund, they will also receive tax benefits,” he told reporters.
The initiative aims to curb selling pressure from long-term funds, which has weighed heavily on the market. Further details on the fund are expected to be announced soon.
Also Read | Elon Musk’s Consortium Makes $97 Billion Play for OpenAI
On Tuesday, the benchmark stock index rose 0.48%, though it remains down about 9% since the beginning of the year.
Also Read | Brazil back in Olympic women’s alpine skiing after 12-year absence
Industry data indicates that approximately 188 billion baht ($5.52 billion) worth of long-term fund units are eligible for redemption.
