Thaksin Shinawatra, the de facto leader of Thailand’s ruling party and former two-time prime minister, has called for tighter regulatory oversight, better corporate governance, and tax incentives to reignite investor confidence in the country’s struggling stock market.
Speaking at a dinner organized by Thai-language newspaper Kao Hoon, Thaksin emphasized the need for a more proactive role from the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) to address a series of corporate scandals that have dampened investor sentiment. He argued that the stock market should also review the prevalence of high-frequency trading, which, according to him, benefits no one except for generating trading volume.
“Trust, confidence, and sentiments are not great in the Thai market now,” Thaksin stated. “We need to bring back trust and confidence.”
Thailand’s $490 billion stock market has significantly underperformed its Southeast Asian peers in recent years. Foreign investors have been pulling out amid concerns over corporate fraud, illegal short-selling, and weak corporate performance, with the economy remaining sluggish. Political instability has further exacerbated the outflow of foreign funds. The SET is down 3.3% so far in 2025, and HSBC recently downgraded the market to underweight, citing a lack of positive catalysts.
Over the past two years, foreign investors have sold off approximately $9.6 billion in Thai stocks, according to Bloomberg data. In response to these challenges, both the SEC and the SET have introduced measures such as mandatory registration for high-frequency traders, tighter disclosure requirements, and collaboration with law enforcement to address corporate fraud. These efforts have focused on companies like Energy Absolute Pcl, Stark Corp., and More Return Pcl.
However, Thaksin criticized the slow response of companies and regulators to fraud cases, which he believes has further eroded foreign investors’ confidence in the Thai market. He urged the SEC and the SET to enforce rules more strictly to “keep the house clean.”
Although Thaksin no longer holds any official position in the government or his daughter’s Pheu Thai Party, he is still seen as an influential figure, shaping the policies of the current administration. Many of his economic proposals have been adopted by the government.
In addition to his proposals for the stock market, Thaksin, a long-time advocate of cryptocurrencies, suggested that Thailand explore issuing stablecoins backed by government bonds for both retail and institutional investors. He also proposed the creation of a digital currency sandbox in Phuket, focusing on bitcoin transactions for tourism-related services.
Related topics:
Constellation Energy Stock Soars on $26.6 Billion Acquisition of Calpine: Key Price Levels to Watch
China’s December Exports Exceed Expectations Amid Trade Uncertainty
China’s Central Bank Halts Bond Purchases to Address Economic Concerns and Yuan Weakness
