00:00What do you make of this big surprise from this election?
00:03Well, I look at it positively, because ultimately we're looking for stability and continuity in how our countries run.
00:12And hopefully this result will at least make it easier to form a government and make it a stronger and stable, more stable government as well.
00:22Because ultimately what we're looking for is continuity.
00:24The consistent comment that I've had from international investors in the past about Thailand is that we've got so much potential.
00:36And all the policies that have been announced by prior governments has always been great.
00:43But when's the execution?
00:45So ultimately if stability comes along and execution can happen, we're looking at it positively.
00:52Can the results, can the new coalition fundamentally, materially change the sentiment among foreign investors?
01:00We talk about stability, but we're also looking for structural change that would boost the economy.
01:06Currently growing at the slower pace in South Asia.
01:09Correct.
01:09Because fundamentally that's the bottom line, right?
01:12How can we grow?
01:14How can we reach our potential?
01:16I think, at least from the economic team of the Pum Jai Thai Party over the past four or five months,
01:23they've shown a good balance between short-term stimulus and as well as looking for the long-term structural changes that are required.
01:33I think both the Commerce Ministry and the Finance Ministry have done a great job in terms of coordinating themselves
01:39and looking to build a stronger platform for the Thai economy in the future.
01:46What kind of flows are you seeing right now?
01:48I mean, some say that perhaps the results have been priced in, not fully, but priced in.
01:53That stability will come back to the country.
01:56What kind of flows are you seeing, especially from the international community?
02:00Well, gladly to say that since the end of December and through January,
02:03we've seen positive inflows from international investors.
02:06How can you quantify that?
02:07It's around, the Thai number is around 10 billion baht, so probably about 3, is it 3 billion or 10 billion baht, let's say.
02:16Then you can exchange rate later because the exchange rate is another issue we could talk about as well.
02:22But it's been a positive flow, so it's been a push on the market.
02:26It's encouraged retail investors to also participate more, at least in January.
02:33What is the SEC doing to encourage more investments in the country, a bigger play in the stock exchange here?
02:41So it comes down, as I mentioned, to fundamentals.
02:45How do we push growth, growth in earnings, growth in returns on equity?
02:50So one of the big major programs that we launched mid-last year is called Jump Plus.
02:55So effectively the same as value-up program in Japan and Korea.
02:59Similar, but adjusted for the Thai context.
03:02We've got 114 companies signed up already, so we're hoping the growth plans under this program will slowly be disseminated,
03:14communicated to the investor community over the next two, three quarters.
03:19We still have room for people to join.
03:22We're looking for the larger companies to join the program as well.
03:26Are there goals?
03:27They will have set goals.
03:30So effectively they need to formulate a three-year plan, investment plan, and what they look to achieve out of those investment plans in terms of real measurable numbers,
03:39whether it be ROE or increases in bottom line and so on.
03:43And this will be communicated to investors as well.
03:47And we'll be keeping track of it.
03:48We'll be communicating.
03:49I think they're required to communicate progress every quarter.
03:54So we'll see.
03:56Hopefully the stronger, more stable government will encourage more people to join the program and more, at least be brave in terms of investing.
04:05Kunal Siddharth, I want to take a look at the IPO market.
04:07It wasn't that long ago that Thailand was actually a front-runner.
04:11It's now a laggard.
04:12What's the outlook for the IPOs in 2026?
04:16It's relatively stable compared to last year.
04:19So it's still relatively down from the pipeline that we've seen at the moment.
04:25And for natural reasons, right?
04:27PEs are low.
04:30The uncertainties both in Thailand and outside of Thailand causes people to at least stop and think about investments and the funds that they want to raise to invest.
04:41So things are looking up with this result in the election, with a number of people joining the JumpUp program.
04:51I think general sentiment will be better and will ultimately help the IPO process.
04:56How many IPOs?
04:57How big might these IPOs be?
04:59Is there a target by the end of 2026?
05:01We don't actually have a quantitative target.
05:04Ultimately, it's been a balancing act in Thailand over the last three, four years between quantity and quality.
05:10At least from our perspective, we focus on quality.
05:14The numbers are up and floating around at the moment.
05:18It's tough to say.
05:19People are hesitant.
05:20People have delayed their processes since the end of last year.
05:24So we'll have to regroup and see what the real numbers will be this year.
05:27How tough is the sell?
05:29Valuations are so low.
05:30And a lot of the IPOs that have taken place in Thailand, the stocks have barely done better than their debut.
05:39I mean, what concerns are you hearing from potential companies wanting to IPO in the country?
05:45Well, unfortunately, the last quarter of 2025, many of the IPOs were the smaller IPOs that have been placed.
05:54So we're looking at structurally how those IPOs are distributed.
05:59I think the majority of the smaller IPOs, obviously the institutional investors, especially international ones, are not in there.
06:05It's just too small for them.
06:07So when it's disseminated majority to retail investors, the sentiment can be triggered quite quickly.
06:16So we're talking to the investment bankers and the SEC in terms of structurally how can we reallocate or allow a bit more flexibility in terms of allocation to ensure that there's a stronger and more long-term investor base at the IPOs.
06:32How are you positioning Thailand in the context of Southeast Asia?
06:36Malaysia, for instance, has become quite an attractive market for IPOs.
06:40Well, I think we're going to be doing a lot of roadshows this year.
06:43So with this government, or hopefully the government that's coming along, led by Pum Jaitai, ever since last year already, we've been on roadshows, a couple of roadshows with them.
06:55And they're positive for the capital market.
06:58They're supportive of the capital market.
07:00There were programs in place that unfortunately wasn't launched because of the dissolution of parliament.
07:07So, for example, for the TISA, T-I-S-A, the Individual Savings Account Programme, if Pum Jaitai comes back in and leads the economic team, hopefully these programs will be launched very quickly.
07:22And then we'll have a story to go to the market and sell it to people.
07:24And then you'll come back for an interview with us.
07:27Kunasad, you alluded to manhood policy, which is, you said, a story on its own.
07:31And what do you see the Bank of Thailand do?
07:33What does it need to do to help support the economy?
07:37I think from what we've heard of the current governor of the Bank of Thailand, they're looking to have a bigger role.
07:44So it's not just interest rates anymore.
07:46They need to be part of helping the economy grow.
07:50And that's a positive or a nice shift in perspective that we hear.
07:58And I'll actually be having lunch with our team shortly this month, later this month, to discuss where we can help each other, encourage and help the economy grow at a faster pace as well.
08:11It is interesting to see how strong the Thai bot has been, despite growth being lackluster.
08:18Is that a concern?
08:18Because that impinges on exports of the country.
08:23What we've heard, at least from my perspective, what we've heard from the international brokers who obviously speak to their international clients,
08:30is that's been a bit of a sort of a ceiling, a limitation.
08:35So there are concerns that if they come back into the Thai market and the Thai bot weakens, it could be seen as a risk, to be honest.
08:46The other perspective that we look at it is from our listed companies.
08:50Obviously, Thailand is so quite dependent on exports.
08:53So the, I wouldn't call it unnaturally or possibly unnatural strength of the Thai bot does have an impact on performances of many of our companies listed.
09:06And, of course, Thailand relies a lot on the U.S. market.
09:09It has been imposed with 19 percent tariffs.
09:12I'm just wondering, how closely are you watching the change, the transition of the top man at the Fed?
09:18How sensitive is Thailand to that?
09:20It has an impact around the world, obviously, where the U.S. policies go along.
09:28I mean, Thailand, as a relatively small economy, is probably less impacted.
09:34It will obviously have issues on fund flows, an impact on fund flows.
09:40But you mentioned tariffs.
09:42I think that's the bigger issue of concern, at least from a local perspective.
09:46If we can get the reciprocal tariffs clarified, it will give us or put us in quite a strong position to know where to invest and compete with the rest of the world.
Comments