In the past 2-3 years, the Thai stock market has been lackluster, with the index dropping below 1,400 points and not yet returning to previous levels. Many believe one reason for the slow recovery is the disappearance of foreign investment fund flow.
Although recently, during Dec 2025 - Jan 2026, foreign investors returned with net purchases totaling 10.547 billion baht, marking the first consecutive net buying since July 2023, many still see this as a temporary factor. There is concern that the Thai stock market is becoming merely a transit point and may grow more slowly than before.
If money flows in and out quickly, Thailand may only serve as a temporary cash parking spot. The challenge is how to make Thailand a lasting refuge for investment. Dr. Sorapol Tulyasatien, Deputy Managing Director and Head of Corporate Strategy and Finance at the Stock Exchange of Thailand (SET). He explained that globally, the greatest fear among investors is asset prices that have soared too high, such as tech stocks, AI bubbles, gold, Bitcoin, and others.
However, Thailand's fundamentals have gradually improved, keeping Thai stock prices at reasonable levels and still attractive. Currently, the price-to-earnings (P/E) ratio stands at 14 times, down from a high of 15-16 times. Thai stocks also offer the advantage of being a safe haven. With the new government’s positive narrative, investors need not worry about bubbles. Regarding SET's role,
: Assadech Kongsiri, Director and Managing Director of SET. He shared that in 2026, there are multiple plans to continuously attract and retain fund flow. SET plans a roadshow targeting long-term foreign investors starting in May 2026, focusing on hundreds of investors interested in Thailand.
Currently, investing in the Thai stock market is considered global. Foreign investors favor Thai banks but often face restrictions leading them to invest elsewhere. Moving forward, regulations must be reviewed and adjusted for better suitability.
Professor Kitipong Urpiboonpong, Chairman of the Stock Exchange of Thailand (SET). He said that packages have been proposed to Prime Minister Anutin's government, such as the Thailand Individual Savings Account (TISA) and the JUMP+ program to enhance the value of listed companies by offering additional tax incentives. These initiatives focus on feasible measures, and if conditions are agreed upon, relevant agencies are ready to implement them promptly.
Assadech elaborated that TISA was not finalized due to parliament dissolution, but discussions with the government are underway to adjust aspects to ensure sustainable investment without concerns about expiration or sell-offs like LTF, and to allow diverse asset investments. Preparations are made to discuss this with the new finance minister.
The bigger challenge for the Thai stock market is to have new businesses and increased opportunities for new revenue streams. The JUMP+ program aims to encourage Thai businesses to invest more boldly, diversifying the SET50 into new industries. Additionally, efforts focus on building trust and confidence in the capital market, including regulatory improvements to monitor misconduct. The BOI to IPO initiative, aimed at capital market-driven growth, is under discussion with the SEC and expected to clarify in Q1 2026.
Recently, there have been reports that prominent Thai companies often choose to list on foreign stock exchanges, mostly through IPOs. Assadech explained that competition among Asian stock markets is intense, with Hong Kong and Singapore aggressively attracting Thai companies. Therefore, SET must study details to determine the best approach for Thailand.
Urgent actions include increasing valuation and liquidity of individual stocks and reducing overlapping or complicated regulations. This includes minimizing discretionary judgments and emphasizing comprehensive disclosure principles.
Finally, while Thai stock prices seem cheaper compared to the past, what everyone seeks are growth opportunities. The key question may be how promising Thailand’s future is compared to other countries.
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