Japanese model inspires Thai capital planners

As Thailand prepares to reshape its capital market landscape, Japan’s Nippon Individual Savings Account (NISA) is emerging as a blueprint to nudge households away from low-yield bank deposits into more dynamic, higher-return investments, say pundits.

- NUNTAWUN POLKUAMDEE

With a prolonged downturn in the Thai stock market and waning investor interest due to a series of negative factors, many investors have shifted their focus to alternative assets and foreign markets.

The Capital Market Development Fund (CMDF) sees Japan's NISA as a promising model to help revive domestic investor confidence and possibly redirect capital back into the Thai stock market.

The CMDF commissioned Thammasat University’s Research and Consultancy Institute to collaborate with economists from BBL Asset Management (BBLAM) to conduct a comprehensive study about insights and policy directions for this initiative.

Chajchai Sarit-apirak, chief investment officer at BBLAM, said Thailand is exploring a similar path as Japan with the upcoming Thai Individual Savings Account (TISA), a new tax-incentivised scheme that could be a game-changer for long-term equity investors.

Under the proposed framework, individuals who invest in long-term stocks may enjoy tax exemptions, mirroring the benefits previously offered by long-term equity funds.