Thailand is set to enhance the size of a state mutual fund by an estimated 100-150 billion baht for an investment in local stock markets, officials revealed on Tuesday in an effort to bolster support for the region’s weakest performing market this year.
Finance Minister Pichai Chunhavajira informed reporters that the Vayupak Mutual Fund will introduce new units to the public by September. The Finance Minister expressed confidence in the project’s ability to revitalize trust in the capital market, highlighting that the government is contemplating additional supportive measures.
Thailand’s main bourse SET Index has plummeted by 8.4% year-to-date, with foreign investors offloading shares worth 120 billion baht ($3.4 billion). Last year, the market experienced a 15% decline due to a sluggish economy, a weakening currency, and political uncertainties.
Lavaron Sangsnit, the finance ministry’s permanent secretary, mentioned that the new fund units will have a 10-year maturity period and will be listed on the exchange. Further specifics will be disclosed at a later date, he added.
The fund’s primary focus will be on investing in securities listed on the Thai stock market, with an emphasis on companies showcasing solid returns, long-term stability, and robust corporate governance, as outlined by Lavaron.
Currently, the Vayupak fund holds assets valued at approximately 322 billion baht, with key investments in prominent entities such as Thailand’s leading energy company, PTT, financial group SCBX, and Krung Thai Bank.
