Bangkok--28 Feb--SET Thailand’s association of capital market academy alumni (ACMA) has proposed the “3 pronged approaches — 7 policies — 17 measures” initiative on capital market development to the Thai finance minister which, if incorporated into national economic policy, would enable the Thai capital market to become the country’s main economic driver. Deputy Prime Minister and Minister of Finance Surapong Suebwonglee chaired the seminar, Thai Capital Market and its challenges ahead, which was organized by ACMA and The Stock Exchange of Thailand (SET). Mr. Surapong also gave the opening speech. The event presented a number of capital market development proposals to the Deputy Prime Minister and the Minister of Finance. These came from ACMA graduates, involving more than 300 executives from the public and private sectors. The proposals will add more value to the Thai capital market and contribute, in a fiscally responsible and realistic manner, to its stability and sustainability. The initiatives promote good corporate governance and a more efficient management of Thailand’s financial resources, ACMA Chairman Pakorn Malakul Na Ayudhya said. “ACMA believes that, unless those involved in the Thai capital market cooperate to develop the market, the value of Thai people’s savings will drop and Thai businesses will see their costs rise. Consequently, making long-term investments will be difficult and Thailand will lose its competitive edge internationally and suffer serious economic damage,” Mr. Pakorn added. The proposals deal with 1) formulating a national agenda on the development of the Thai capital market, 2) enabling the capital market to adjust to the anticipated pressure of financial globalization and 3) promoting public confidence in the capital market. In order to achieve these aims, ACMA suggested the following policy approaches: Approach 1 — Formulation of a national agenda on Thai capital market development consisting of two key policies: a) upgrading the capital market’s participation in determining macro-economic policies and b) establishing a National Capital Market Development Committee to ensure that the national agenda leads to the long-term improvement of the capital market. Approach 2 — Enabling the capital market to adjust to the anticipated pressure of financial globalization consisting of three main policy recommendations: The first recommendation under this approach is to support government policies promoting creation of savings and investment channels for both long-term savings and local institutional investors. This includes support for state enterprise privatization and expanded state investment in basic infrastructure which, in turn, will boost fundraising on the Thai capital market and increase employment and opportunities for Thai people. The second policy recommendation is to upgrade the local capital market to be able to deal with financial globalization effectively. This includes creating more depth in the equity, bond as well as derivatives markets, reducing costs associated with raising capital, developing personnel and encouraging organizations to invest overseas aggressively. This recommendation also calls for greater networking between the financial and capital markets, using the commercial banks as catalysts. All organizations in the capital market should help create corporate governance suitable for both listed and non-listed firms, and create motivation for maintaining listing status. The third policy recommendation concerns transforming SET’s operations by examining the potential of privatizing the Exchange, including studying the legal factors involved, and the benefits to be gained from market demutualization. Approach 3 — The promotion of public confidence in the capital market entails two key policy recommendations. The first is to promote SET as an organization working for the benefit of the country and the public, Consultation with outside parties will focus on what and how the Exchange needs to change so that it and its policies are better understood. The second recommendation focuses on the clarification of legal issues to create trust. This concerns enforcing laws and regulations more clearly and increasing participation in formulating and passing new regulations. This will increase the understanding of legal issues by people involved with SET. 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