The Capital Market Development Fund (CMDF) has reaffirmed its commitment to driving sustainable development in Thailand's capital market, which faces both external and domestic challenges.
A slowing economy, elevated household debt, static tourist arrivals, market fraud, and selling pressure from maturing long-term equity funds (LTFs) all weigh on the capital market, said Kitipong Urapeepatanapong, chairman of the CMDF board.
These factors have contributed to the Thai bourse stagnating, said Mr Kitipong, who is also chairman of the Stock Exchange of Thailand (SET).
"The new Thai ESG Extra [ESG X] funds have so far drawn relatively limited capital to lift the SET," he said.
"If inflows continue to underperform, it may be necessary to extend the investment period and encourage more investors to switch from maturing LTFs to Thai ESG X funds."
Efforts should focus on increasing public awareness and promotion of Thai ESG X funds, said Mr Kitipong, as there are no plans to change the fund's terms or conditions.
Last year the CMDF provided funding to 22 strategic projects, reflecting its focus on enhancing the capabilities of market professionals, promoting investor education, and advancing policy frameworks that align with long-term national goals, he said.
Strengthening Thailand's capital market ecosystem should eventually improve the country's competitiveness, according to the fund.
"The CMDF is dedicated to supporting capital market development through promoting financial literacy, developing human capital, advocating for regulatory reform, and applied research," said Mr Kitipong.
The fund supports projects that promote environmental, social and governance efforts, public investment literacy, and capital market workforce enhancement.
In addition, the CMDF supported a policy study on the development of the Thai Individual Savings Account, meant to establish a robust long-term savings infrastructure for Thais.
These efforts highlight the fund's role in bridging research and practice, providing insights and recommendations to key stakeholders, he said.
According to CMDF president Juckchai Boonyawat, between 2020 and 2024 the fund approved 153 projects worth more than 2.9 billion baht. Of these, 83 projects have been successfully completed.
"Each project contributed to the capital market ecosystem, reinforcing CMDF's mission to build a resilient, inclusive, and forward-looking financial landscape," said Mr Juckchai.
In 2024, CMDF also advanced several research initiatives through the Capital Market Research Institute, focusing on provident fund management in post-retirement life, investment fraud prevention, investor protection, and strategies for carbon credit market development in Thailand.
The fund's ongoing tasks include the development of more than 3,500 organisations and training of 15,000 professionals in the capital market.
The CMDF also facilitated international and domestic certification programmes, benefiting 940 industry participants.
Looking forward, the fund's strategic plan emphasises workforce development, research-driven policymaking, and promoting capital market literacy.
These efforts align with its core objectives of enhancing market infrastructure, strengthening human capital, advancing public understanding, and supporting targeted research, he said.