The Stock Exchange of Thailand (SET) has emphasized the significant role of family businesses in the Thai economy through its recent SET Note document.
The report highlights that 80% of all businesses in Thailand are family-owned small and medium-sized enterprises (SMEs). Moreover, 67% of the listed companies on the SET and the Market for Alternative Investment (MAI) are family businesses, underscoring their importance in the country’s economic landscape.
As of June 2024, 575 out of 852 listed companies are identified as family businesses. These companies account for 50% of the total market capitalization on the Thai stock exchange. Family businesses span various sectors, including food and beverage, real estate development, energy and utilities, commerce, and media. They have consistently utilized the stock market for capital raising, with 76% of companies listed between 2016 and June 2024 being family businesses.
From 2016 to 2023, 188 family businesses conducted initial public offerings (IPOs), raising a total of 344.45 billion baht, representing 61% of all IPO funds. Additionally, 71 family businesses have raised further capital through 329 secondary offerings, totaling 70.18 billion baht.
Family businesses significantly contribute to the Thai economy. In 2023, they generated 8.31 trillion baht in revenue, equivalent to 46.4% of Thailand’s GDP. These businesses also paid 106.287 billion baht in corporate income tax, accounting for 14.1% of the total corporate income tax collected by the Revenue Department.
The report also indicated that employment within family businesses is substantial, with 561 companies employing 1.35 million people in 2023, a 6% increase from the previous year. (NNT)
