AIMC unveils plan to attract investment to the Thai capital market, promoting Thai ESG as its flagship product, targeting 6 million investor accounts.
The Association of Investment Management Companies (AIMC) unveils its 3-year strategic plan to elevate the Thai capital market towards sustainability and support various projects. TISA is positioning Thai ESG as its flagship product, targeting the expat market to generate 100 billion baht in annual revenue and aiming to double its investor base to 6 million within 5 years.
Amidst the main challenges stemming from the savings-investment gap among Thais, where despite high access to the financial system, only a small percentage actually invest, the crucial question is... Poj Harinsut, Chief Executive Officer of Wann Asset Management Co., Ltd., in his capacity as President of the Association of Investment Management Companies (AIMC).AIMC (Association of Asset Management Companies) The new appointee, who took office on March 20, 2569, faces the challenge of making mutual funds the primary savings instrument for the country, competing with other savings options, especially cooperatives, attracting foreign investment, and leading ESG transformation.
Unveiling the 3-year plan with 4 strategic approaches.
Poj Harinsut, President of the Association of Asset Management Companies. Give a special interview bank finance Based on the above objectives, the Association of Asset Management Companies has developed a 3-year strategic plan (2569-2571) under 4 main strategies as follows:
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- Policy Drivers – Driving policies to increase savings. The plan aims to increase national savings, expand the investor base from 3 million to 6 million within 5 years, expand sales channels through digital platforms, promote automatic investing, and expand investment to the informal sector, including freelancers and gig workers.
- ESG Pioneer – Driving ESG as a selling point for the Thai capital market. We support the Nationally Determined Contributions (NDCs), which are action plans and commitments developed by each country to reduce greenhouse gas emissions and adapt to climate change. We aim to promote ESG assets as a strength of the Thai capital market and encourage collective engagement among institutional investors to elevate the standards of listed companies.
- Pension Architect – Laying the Foundation for a Pension System The aim is to increase retirement savings through provident funds (PVDs) to support an aging society, while also promoting mandatory savings through relevant legislation and expanding the types of investment assets in PVDs to align with international standards.
- AMC Business Development – Elevating the Investment Management Industry Develop channels and opportunities to expand investment management businesses, including developing industry infrastructure, reducing costs, and increasing management efficiency.
Furthermore, the president of the Association of Mutual Fund Management Companies (AMCs) has a concept to upgrade investment through digital channels and promote automatic investing. For example, global companies like Microsoft or Amazon, which have established data centers in Thailand, should be encouraged to tokenize their assets to create digital assets that are easily accessible to the public. This would also help increase liquidity for the Thai Digital Asset Exchange Company Limited (TDX) of the Stock Exchange of Thailand.
“The Association of Investment Management Companies' strategy for the next three years is therefore not just about increasing the number of investors or the growth of the investment management industry, but about designing a new economic system that efficiently links public savings with national growth. Enhancing the role of institutional investors, attracting foreign investment, addressing the aging society, and driving financial innovation are all crucial components that will shape the direction of the Thai capital market in the coming decade.”
Poj said that if the strategy can be implemented concretely, the Thai capital market has the potential to become a key mechanism for creating long-term wealth, strengthening economic stability, and sustainably improving the quality of life for the people in the future.
“Currently, only 15% of the total workforce of 40 million people are investors, indicating significant room for growth compared to neighboring countries. Thailand holds approximately 60% of its financial products in mutual funds, while Malaysia, Singapore, and the United States have much higher proportions, around 80-100%. Meanwhile, Thailand has a substantial amount of money in bank deposits, totaling 16-17 trillion baht, while the money in mutual funds is only 10 trillion baht. This demonstrates the considerable potential to attract savings to generate returns in the capital market.”
“Four strategies of the Investment Management Association to drive policies to increase savings, promote ESG as a selling point for the Thai capital market, lay the foundation for a pension system, and upgrade the investment management industry, with the ultimate goal of increasing…”"The number of investors doubled to 6 million within 5 years."
Promoting mutual funds as the primary savings mechanism for Thais.
Poj pointed out that public access to the financial system is high, with 92% of adults having bank accounts, 92% using digital payments, and over 81 million PromptPay accounts. However, only 3-4 million people, or just 10%, have mutual fund accounts, highlighting a significant gap in the Thai capital market. The Association of Mutual Fund Management Companies aims to double its investor base, targeting the number of unit holders from 3 million to 5-6 million within 3-5 years, making mutual funds the primary savings mechanism for Thais.
Considering public investment patterns, the proportion of investors remains relatively low. There are approximately 3 million provident fund holders, 2.83 million stock investment accounts, and 4.2 million investors in the Stock Exchange of Thailand. Meanwhile, there are about 3.17 million digital asset accounts, with an estimated 6 million actual investors. Over 34 million people, or 85% of the workforce, have yet to invest.
Currently, the Thai mutual fund industry has total assets under management (AUM) of 6.35 trillion baht, divided into mutual funds (63%), private funds (21%), and provident funds (15%). The majority of fund investments are domestic (74%) or 4.82 trillion baht, while 26% or 1.71 trillion baht is invested internationally.
For equity mutual funds, investments in Thai and foreign stocks are roughly equal, totaling around 0.92 trillion baht per category. Compared to the size of the economy, Thailand's Gross Domestic Product (GDP) is 18.97 trillion baht, while the market capitalization of the Thai stock market is 17.89 trillion baht, or 94% of GDP. The bond market has a value of 15.91 trillion baht, or 84% of GDP.
A new model, based on Singapore's approach, has emerged to attract investment into the stock market.
Furthermore, a proposal has been made to increase the value of the Thai stock market by encouraging long-term foreign investors in Thailand to invest. This approach recognizes the potential of this group of foreigners, particularly from the Middle East, who number around 500,000 in Thailand. Attracting just 25,000 of them to invest an average of 1 million baht each would significantly inject new capital into the market.
The Association of Mutual Fund Management Companies will propose adjustments to the Long-term Resident Visa (LTR Visa) requirements, which currently stipulate an investment of US$500,000 in bonds or real estate. The proposal is to allow mutual funds to be included as investment assets for visa applications, thereby facilitating the process and attracting more investment into the Thai capital market.
“Regarding the LTR Visa, the association proposes adopting a model similar to Singapore's, requiring LTR Visa holders to invest at least 10% of their wealth in the Thai stock market to enhance competitiveness against countries in the region.”
Defining the role of the Asset Management Companies Association.
Be an "architect of retirement savings."
Regarding the issue of supporting an aging society, Mr. Poj said that Thailand is moving towards an aging society, so there is a plan to promote the Association of Mutual Fund Management Companies (AMCs) as "architects of retirement savings" to help solve the problem of money flowing out of the system after retirement. This will involve competing with cooperatives, which currently allow retirees to deposit their money in cooperatives offering returns of 3-4% per year. Therefore, it is a major challenge for AMCs to offer products that provide returns of 4-6% per year to attract investors.
This includes developing retirement products (Silver Age Products), such as annuity funds that provide regular cash flow or funds linked to assets that older people trust, such as gold, to give investors a sense of security while still receiving good returns. It also involves collaborating with financial institutions to convert residential properties into income for post-retirement expenses, supporting the concept of converting real estate into monthly income for retirement, similar to models used internationally.
“The role of the Association of Mutual Fund Management Companies is no longer just that of fund managers, but is evolving into a ‘Pension Architect.’ We design mechanisms, channels, and products to create a system that supports long-term financial security. Our goal is to make society aware that we are a key mechanism in helping to improve savings for Thai people.”
Withdraw money TISA - Foreigners residing in Thailand - Senior Citizen Group
Regarding the goal of attracting new funds into the capital market, Mr. Poj said that the Association of Investment Management Companies (AIMC) is proactively pursuing a plan to enhance domestic savings and investment through the Personal Savings and Investment Account (TISA) program, coupled with adjustments to the Thai ESG fund conditions as key mechanisms for attracting new funds into the savings and investment system.
The initiative also aims to expand the investor base to include expats residing in Thailand and the elderly (Silver Economy), who have high savings potential. It is estimated that these measures will generate at least 1 billion baht per year in revenue for the system.
The Association of Investment Management Companies (AIMC) is preparing to propose to the government a restructuring of tax benefits under the TISA program to increase incentives closer to those offered by long-term equity funds (LTF) in the past. Key proposals include expanding the overall tax benefit ceiling from 800,000 baht to 1 million baht, and increasing the deduction limit for investments in ESG assets—including stocks, bonds, and Thai ESG funds—from 300,000 baht to 500,000 baht, reflecting the growing emphasis on sustainability in investment.
Meanwhile, there are also structural proposals to increase flexibility for investors. In the event that the benefit ceiling remains at 800,000 baht, the association proposes allowing the final 300,000 baht to be invested in a Thai ESG fund.
Suggest additional ESG Share Class
An inflow of 1 billion baht per year is expected.
Poj said that the first generation Thai ESG fund had too high a proportion of debt instruments (70%), resulting in less than 1 billion baht per year flowing into the stock market. Therefore, in order to ensure efficient inflow of funds into the Thai stock market, he proposed the following new solution:
ESG Share Class If the government does not include Thai ESG in TISA, a proposal will be made to add a new share class to existing funds that focus directly on Thai equities, in order to reduce confusion and avoid the need to create a new fund. The target is a total asset under management (AUM) of 500,000 billion baht, with an expected annual inflow of 1 billion baht.
Strategic aspect ESG and the Green Economy The Association of Investment Management Companies (AIMC) will be the main driver towards Thailand's Net Zero 2050 goal by developing a Carbon Credit Fund, covering both upstream and downstream carbon credits, to enable businesses to manage carbon risk and support Thailand's Net Zero 2050 target.
ESG Integration Mandating rigorous ESG (Environmental, Social, and Governance) criteria for stock selection processes by asset management companies aims to enhance corporate governance in Thai listed companies. This includes developing a central registration system to integrate provident fund and mutual fund data, improving efficiency and reducing costs for asset management companies. Furthermore, it involves expanding the Digital Asset Platform (DAP) to create a one-stop shop where investors can view a comprehensive overview of their investment portfolios from all asset management companies in a single location.
A proactive approach to driving good governance in Thailand's capital market.
From the perspective of the new president of the Association of Mutual Fund Management Companies, the issue of corporate governance in the Thai capital market remains a key topic of ongoing discussion, particularly through case studies of some large listed companies, which reflect both the power structure in decision-making and gaps in the regulatory system.
The role of the Association of Asset Management Companies (AMC) is therefore not limited to investment, but also supports the advancement of good governance in the Thai capital market through a proactive approach. It emphasizes the importance of the screening process for directors of listed companies as a key element of good corporate governance.
“We believe that directors with the appropriate knowledge, experience, and expertise can create added value for the business, coupled with business ethics, free from disqualifying characteristics or a history of governance risks. This is a fundamental factor in building confidence among both domestic and international investors, which directly impacts the value and long-term sustainability of the business.”
Meanwhile, ESG concepts are being pushed from abstract frameworks to tangible investment tools, particularly in the development of new products linked to the green economy. On the upstream side, there are plans to establish a Green Investment Trust that will focus on investing in carbon credit-generating projects according to domestic standards.
On the downstream side, Carbon Credit Funds are being developed in both real asset and derivative formats to provide investors with opportunities to manage price risk in advance. These mechanisms aim to increase the participation of Thai investors in ESG assets and build understanding through real investment experiences.
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