The Thai stock market experienced significant pressure on February 25 with the SET Index leading major markets in Asia in loss, dropping 2.38% to the lowest level since October 2020. This has caused substantial concerns among investors.
In an interview with “Kaohoon,” Deputy Prime Minister and Finance Minister, Mr. Pichai Chunhavachira, commented on the situation. He noted that the Thai stock market had previously hit a low of 1,200 points before recovering to over 1,400 points, indicating that market movements are significantly influenced by investor confidence.
The government has implemented nearly all necessary measures to address the issue, including continuously managing short selling activities. It is also in the process of selecting potential investment products to support the Thai capital market.
Mr. Pichai discussed the “Thai ESG2” fund, which will accommodate funds transferred from maturing LTFs (Long-Term Equity Funds). When asked if this could help stabilize the market, he explained that if the new fund’s structure offers advantages over the expired ones, it could potentially enhance the stability of the Thai capital market.
“If we create something new and better than the old expired funds, it should help,” stated the Deputy Prime Minister and Finance Minister.
Mr. Pichai concluded by affirming that the government remains committed to its target of achieving more than 3% GDP growth in 2025. However, the situation will need to be closely monitored, especially in the third and fourth quarters. If the economic momentum can be maintained, the GDP numbers should remain within the set targets.
