Thai Times

Covering the Thai Renaissance

New State Fund Aimed at Boosting Thai Market with One Hundred Billion Baht

The Finance Ministry plans to introduce a new fund similar to the Vayupak Fund within two weeks. The fund is expected to inject one hundred billion baht into the market. There are two options: creating a new fund or adding to existing ones, with the latter being faster.
The Finance Ministry is preparing a proposal to create a new investment fund similar to the Vayupak Fund within two weeks.

This new fund is expected to inject at least one hundred billion baht into the capital market, as stated by finance permanent secretary Lavaron Sangsnit.

Two options are being considered: establishing a third Vayupak fund or raising additional capital for the existing funds.

The existing Vayupak funds consist of Type A, with public investment units valued at one hundred fifty billion baht, and Type B, composed of state-held units valued at around three hundred fifty billion baht.

The second option of raising additional funds is preferred for quicker market stimulation.

While improvements to the Thai ESG Fund have been made to offer tax deductions and stimulate market investments, these investments likely won't materialize until year-end.

Consequently, the new Vayupak Fund is deemed necessary to fill this gap.

The fund aims to capitalize on current stock price drops by focusing on fundamental stocks.

According to Lavaron, strong regulatory frameworks are essential for sustainable investor confidence.
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