The Thai stock market pared some losses in the morning session after the Thai Cabinet approved the establishment of a new Thai ESG X Funds with an expectation to help boost the capital market.
The Thai capital market has been facing outflow from the redemption of Long-Term Equity Fund (LTF) since the beginning of 2025, causing the stock market to drop 11.5% so far this year.
A source close to the matter stated that the Thai Cabinet on Tuesday approved the Thai stock market stimulus measure with an establishment of Thai ESG X. Investors who purchase units of this new fund within the first two months of its establishment, but no later than the end of June 2025, will be eligible for a special tax deduction benefit of up to 300,000 baht.
In addition to the newly introduced measures, investors currently holding units in Long-Term Equity Funds (LTF) who have yet to sell their holdings can opt to maintain their tax deduction benefits by transferring their investments to the Thai ESG X Fund. Those who wish to take advantage of this opportunity must express their intent to transfer within two months, but no later than the end of June 2025.
Upon successful transfer, investors will be eligible for a tax deduction of up to 500,000 THB. This deduction can be utilized by deducting up to 300,000 THB in the first year, with the remainder being averaged over the next four years.
While the original LTFs remain in place for investors who choose not to transfer, they will not be entitled to the same tax deduction benefits. This initiative represents the government’s effort to promote sustainable investments, aligning with the broader goals of integrating ESG (Environmental, Social, and Governance) principles into the Thai financial ecosystem.
