Cabinet accepts FETCO proposals

The Cabinet has accepted three proposals from the Federation of Thai Capital Market Organisations (FeTCO) on how to promote the use of local markets as a funding mechanism to stimulate the economy.

The group submitted the proposals on Sunday at this year’s first meeting between public and private agencies and Prime Minister Yingluck Shinawatra in Chiang Mai, FeTCO chairman Paiboon Nalintharangkul said.

The proposals are designed to help the government find funding for infrastructure and economic development, he said.

The first proposal is to exempt offshore holding companies and funds covered by Thailand’s double-taxation treaties with Burma and Laos from paying withholding taxes on dividend and interest.

The meeting resolved that the Finance Ministry would consider appropriate requirements for those qualifying for the exemptions to negotiate changes in the treaties.

The second proposal is to provide basic financial knowledge for people in the upper North involved in implementing the Finance Ministry’s and FeTCO’s resolutions.

The third proposal is to upgrade Thailand’s capital markets and promote them as the most efficient mechanism for mobilising funds. The meeting assigned the Finance Ministry to speed up development of the markets so local administrative organisations can help shoulder the burden of finding funding sources. The readiness of these organisations must be considered, Paiboon said.

"The Cabinet approved the proposals and assigned FeTCO to work with the relevant agencies. I’m glad the government sees the capital markets as essential to helping secure funding sources. I see this as another success for FeTCO," Paiboon said.

He added that FeTCO would become an increasingly important agency for raising public awareness of the capital markets among the public and private sectors.

The organisation was invited to join three more public-private meetings to tackle regional economic problems in the Northeast, South and Central regions in February, March and April respectively.

FeTCO will hold an internal meeting to discuss proposals to be tabled at future Cabinet meetings, Paiboon said.