Investment reform lifts sentiment
The proposed Thailand Individual Savings Account (TISA) scheme could be launched in the third or fourth quarter this year, creating a new growth path that could lift GDP growth to 4% and push the benchmark stock index towards 1,800 points, says the Federation of Thai Capital Market Organizations (Fetco).Modelled after programmes in Japan and the UK, TISA could become a game-changer for Thailand's capital market, said Fetco's new chairman Paiboon Nalinthrangkurn.
Unlike previous tax-saving investment schemes, TISA is designed as a permanent programme that encourages continuous long-term investing rather than periodic participation, said Mr Paiboon, who is also chief executive of Tisco Securities.
The framework already received preliminary support from the Finance Ministry, while implementation details are being finalised, with the scheme likely commencing in the third or fourth quarter this year, he said.
Under TISA, investors can allocate funds to individual stocks or mutual funds while enjoying tax incentives. Funds invested under the scheme remain in the investment system until maturity, although investors can switch funds between eligible assets.
