The Stock Exchange of Thailand (SET) has a market cap of up to 115 per cent of the nation’s GDP, he says, and “is one of the largest and most advanced stock market systems in the Asean region and globally”.

However, only 3.5 million Thais are registered in the stock market, a small fraction of the total population of approximately 69 million. 

Rapee was speaking at the “Structure of Thai Stocks, Will it Plummet or Continue to Grow?” event, organised by Krungthep Turakij, a sister newspaper to The Nation. 

Thailand’s population is rapidly ageing, with up to 17.1 per cent of Thailand’s population now seniors. As a proportion of the total population, this places Thailand’s elderly as the second highest in the Asean region, behind Singapore with 19.6 per cent and ahead of Vietnam with 11.1 per cent, he said.

“This not only increases the tax burden on the younger population as the number of taxpayers fall, but also leads to a financial problem |for the elderly population,” Rapee said.

Savings accounts in banks and purchasing government bonds will not suffice as a financial retirement plan, as the increase in their value over time from interest may not compensate for inflation. The interest-based approach would over time reduce the net wealth of individuals, he said.

Meanwhile, the secretary-general added that the average return from investing in stocks is at 10 per cent, making it a more viable option for long-term investment for retirement. 

“For this reason, the SEC and SET have been introducing new programmes and initiatives to encourage more Thais to start making long-term investments in the stock market,” he said.

For example, the Supervision and Provident Fund Management programme aims to offer a life path-oriented plan for its members.

“The plan will adjust the members’ portfolios automatically and appropriately according to their age. It would change the nature of investments as members’ approach closer to retirement,” Repee explained.

The SEC has also launched “Wealth Advice for All” as another long-term investment service for the public. 

It was kick-started at the beginning of this year and is now picking up steam, with up to 170 listed companies cooperating with the SEC to provide wealth advice, he said. 

The service aims to provide the public with financial advice and financial planning as well as |promote the use of financial technology (fintech) as both a business tool and assistance for personal financial planning, said Rapee. 

“Most Thais receive inadequate financial advice from banks as banks tend to only offer constant and flexible financial advice to private wealth investors. This is due to the lack of human resources to offer detailed financial advice [targeted for the personal situation of each] bank client,” he said.

“Hence, most Thais are misinformed about how to most effectively invest their capital. The ‘Wealth Advice for All’ project aims to address this, focusing on giving advice about long-term and sustainable investments for the public,” he explained. 

Source: http://www.nationmultimedia.com/detail/Economy/30360844