SET announces 2019-2021 strategic plan to become nations one-stop capital market platform

Stocks and Financial Services Press Releases Thursday January 31, 2019 17:32
Bangkok--31 Jan--SET

The Stock Exchange of Thailand (SET) sets out the three-year strategic plan (2019-2021) under a theme of "Creating Partnership Platform to Drive Inclusive Growth" via four main strategies 1) Expand business activities; 2) Explore new opportunities with technology; 3) Reform regulations and streamline processes; and 4) Restructure business portfolio to slim down costs and broadening business opportunities for the entire capital market industry, aiming to boost efficiency and become Thailand's one-stop capital market platform that enables for the country's growth.

Furthermore, SET is committed to the capital market's sustainable development by applying UN Sustainable Development Goals (SDGs)'s framework to achieve sustainable development, focusing on four goals which are the 10th goal on Reduced Inequalities; the 12th goal on Responsible Consumption and Production; the 13th goal on Climate Action; the 17th goal on Partnerships for the Goals.

SET President Pakorn Peetathawatchai stated in three years (2019-2021), that SET is poised to implement the strategic plan via four key strategies"Expand-Explore-Reform-Restructure" by improving working efficiency and diversifying into new businesses to make the capital market 'Work" for everyone.

SET's four-pillar strategy:

1) Expand business activities: Increasing investor base in potential secondary provinces; educating retail investors on investment planning for retirement and investment tools; building a culture of investment through dollar-cost averaging (DCA) approach; developing the capital market's standard common infrastructure (front - middle - back office); and facilitating data accessibility for capital market stakeholders; including setting up financial knowledge platforms under partnership with the public and private sectors as well as media.

2) Explore new opportunities with technology: Scaling up to a full spectrum of digital transformation by creating an open utility platform, widening accessibility to mutual funds through FundConnext platform's services for cross-border fund distribution, interbank payment, online account opening, while connecting with international partnership to create business valuation for capital market, and preparing to build digital asset ecosystem.

3) Reform regulations and streamline processes: Initiating one-stop service platform inclusive of initial public offering (IPO), supervision, post-trade, sustainability development services, and expand services for other stakeholders in the future, in order to eliminate duplicate processes, creating flexibility, cutting down industry cost, as well as working with regulatory agencies to truly remove business operation obstacles.

4) Restructure business model: Focusing on providing value added to stakeholders in the capital market to sharpen competitive edge by identifying businesses into three groups, namely core business, new business & infrastructure development, and capital market development.

Summary of key developments and achievements in 2018
Business
  • SET has been the most liquid market in ASEAN since 2012, with an average daily trading value of THB 57.67 billion (approximately USD 1.8 billion).
  • 19 Thai listed companies have been selected as components of Dow Jones Sustainability Indices (DJSI), the highest number in ASEAN.
  • 35 Thai listed companies have been selected as constituents of the MSCI Standard Index, with two additions from the previous year, the highest number of added stocks in ASEAN.
  • SET introduced two new indices named "SET THSI Index (SETTHSI)" consisting of stocks, highly perform on environmental, social and governance (ESG) perspectives; and "SET CLMV Exposure Index (SETCLMV)" which comprises of Thai stocks, generating revenues from Cambodia, Laos, Myanmar and Vietnam (CLMV), allows investors to get benefit from these growing economies.
  • SET kicked off Thailand's first depositary receipt (DR) representing an exchange-traded fund (ETF), which invests in VN30 index that tracks performance of the top 30 large-cap Vietnamese stocks.
  • Thailand Future Fund Infrastructure Fund (TFFIF) emerged as the first SET-listed fund backed by state infrastructure projects.
Qualitative
  • Thai capital market led ASEAN CG Scorecard, receiving the highest score in ASEAN.
  • SET introduced C (Caution) sign to protect investors and retain listed companies' quality.
  • SET encouraged a culture of continuous investment, with additional 63,000 accounts adopting DCA approach.
  • SET built financial literacy to additional 832,946 working-age persons from 327 organizations.
  • SET enhanced innovative creation in the capital market through "Capital Market Innovation Awards 2018" program.
  • SET enhanced listed companies' awareness of combating global warming by reducing greenhouse gas emissions through Care the Bear project.
Recognition on global stage
  • SET was the sole emerging and Asian exchange to be granted the United Nations Sustainable Stock Exchanges (SSE) Market Transparency Award at the SSE Global Dialogue, demonstrating the exceptional sustainability disclosure practices of Thai listed companies.
  • Thailand Securities Depositary (TSD) won Best Central Securities Depositary in Southeast Asia, reflecting development in working process and upgrade of post-trade service to meet the global standards.
  • SET received two awards: Best Stock Exchange in Advanced Emerging Market and Best Sustainable Securities Exchange in Southeast Asia Emerging Market, from a UK-based magazine CFI.co.
  • SET took a big step on the global stage by hosting international conferences for: the Association of Futures Market (AFM), the Greater Mekong Subregion (GMS) Exchange CEOs Summit (GMS Focus), including the annual grand inbound roadshow Thailand Focus to showcase the Thai capital market's potential among global investors.
Infrastructure development
  • SET adopted T+2 settlement cycle.
  • SET signed a Memorandum of Understanding in cooperation with Clearstream, one of the world's leading international securities depositories, to conduct a study on cross-border fund trade.
  • SET has allowed investors to use securities as collateral for margin at Thailand Futures Exchange (TFEX).
Digital service development