The Ministry of Finance is set to propose the creation of a new fund within the next two weeks, modeled after the existing Vayupak Fund, which primarily invests in Thai stocks with strong fundamentals. Permanent Secretary for Finance Lavaron Sangsnit indicated that the initiative aims to inject a minimum of 100 billion baht into the capital market to stimulate investment.
There are currently two types of Vayupak funds: Fund Type A, accessible to the public with a total value of 150 billion baht, and Type B, comprised of investment units held by the Finance Ministry and state agencies, totaling around 350 billion baht. The ministry is considering either creating a third fund or expanding the existing ones, with the latter option preferred for its expediency as it circumvents the delays associated with establishing new regulations.
In addition to the Vayupak Fund proposal, the ministry is refining the Thai ESG Fund’s investment conditions, offering investors tax deduction incentives. Although these changes are intended to boost stock market activity, substantial investments in the Thai ESG Fund are not anticipated until the end of the year, leading to a potential gap in market stimulation.
Lavaron stated that the Vayupak Fund could quickly raise funds and invest in the stock market, bridging the gap until the Thai ESG Fund investments materialize. He noted the current low prices of many stocks present a favorable investment opportunity, with the fund focusing primarily on stocks with solid fundamentals.
Lavaron, meanwhile, stressed the importance of robust regulations from the Stock Exchange of Thailand and the Securities and Exchange Commission in maintaining sustainable investor confidence. (NNT)
