FRIDAY, March 29, 2024
nationthailand

SEC reforms to benefit SMEs in raising capital

SEC reforms to benefit SMEs in raising capital

The Securities and Exchange Commission (SEC) will introduce two regulatory reforms to make it easier for small and medium-sized enterprises to gain access to capital in the stock market.

 

 


SMEs and start-ups are the core of Thailand’s economy, said Ruenvadee Suwanmongkol, secretary-general of the SEC, at today’s Thailand Focus 2019 event.
Currently, SMEs provide 14 million jobs in the country and contribute 42 per cent of Thailand’s GDP, she said, adding that by 2021, SMEs will contribute up to 60 per cent of the country’s GDP.
The SEC has ten agendas that will enhance opportunities for SMEs looking to gain access to Thailand’s capital market. They include democratising market access to smaller businesses, enhancing investor protection, promoting big data analysis, enhancing international cooperation, strengthening effective regulatory reform and enforcement and adopting digital transformation.
“The SEC is working with the relevant government agencies on a potential incentive package to lower the cost for SMEs trying to raise funds through Thailand’s capital market,” Ruenvadee said.
A draft of the incentive proposal is being submitted to the executive board of the SEC and the final document is expected to be released at the end of next month, she said.
The draft is part of the SEC’s goal to promote the growth of SMEs and startups in the country by trying to lower regulatory challenges.
Furthermore, the SEC is working with government agencies to amend shareholder regulations so that SMEs will be able to distribute shares to new investors. Currently, SMEs do not have a realistic option for raising capital through this method due to regulatory barriers.
Meanwhile the Stock Exchange of Thailand (SET) has launched the LIVE platform, a platform for start-ups in Thailand to gain access to capital through crowdfunding, said SET president Pakorn Peetathawatchai.
The platform also offers training and business resources for start-ups so that they can learn to grow and start operating like a bigger business listed in the stock exchange.
The SET recognises the importance of SMEs to the country’s economic growth. Going forward, Pakorn said, the SET will be active in providing more resources and platforms for SMEs to grow.

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