Bangkok--24 Sep--SET The Thai capital market has been an essential pillar for the Thai economy, as it has significantly supported the expansion of Thai businesses amidst a variety of economic conditions, Chairman of The Stock Exchange of Thailand (SET) Mr. Pakorn Malakul na Ayudhya noted. The capital market is hence essential and has been operating efficiently. “Under any economic conditions, the Thai capital market has been efficiently supporting the fundraising needs of businesses, hence providing them with more options beside commercial bank loans. This has helped the firms manage their debt-equity ratios, reducing financial risk. The capital market is thus important to business expansion and the economy overall,” Mr. Pakorn said. During the past decade after the economic crisis, Thai businesses have raised about THB 1.7 trillion (approx. USD 49.42 billion) from the capital market, while they borrowed about THB 900 billion (approx. USD 26.16 billion) from banks. The 1.8 times dependency on the capital market over bank loans showed that the capital market has been their essential funding source. Concerning efficiency and transparency, Mr. Pakorn added that SET has been operating with good corporate governance (CG) and its processes are subject to examination. SET has an appropriate board structure, having representatives from all stakeholders taking part. The board follows good CG practices in actively overseeing SET’s operation. In addition, SET is always concerned about investors’ benefits and protection. Hence the exchange ensures that listed companies disclose significant information on a complete and timely basis. SET employs a modern surveillance system in line with international standard. Suspicious stocks have been actively investigated. “In 2006, there were only 5% of all listed stocks, worth only 1.5% of total market capitalization, that were under suspicion for price manipulation. Thus it is evident that the questionable stocks are only a small minority,” Mr. Pakorn said. For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797