Guidelines for Developing Regional Competitiveness of the Stock Exchange of Thailand among ASEAN Countries

Abstract

     Guidelines were proposed to develop the regional competitiveness of the stock exchange of Thailand (SET) among ASEAN-5 countries. In addition to the use of a research synthesis technique, the focus group method was conducted to integrate prior research with expert opinions and to present guidelines to accelerate the development of the SET among ASEAN members. The focus group method allowed experts on the capital market and regulators to analyze the strengths, weaknesses, opportunities, and threats of the SET and to set guidelines for development. The results showed that the SET is middle ranked with regard to competitiveness. Therefore, to enhance the competitiveness of the SET in the short run, policymakers should primarily address its weaknesses and reduce investment trading constraints; for example, improve the trading systems, increase transparency, and enhance the human resource skills in the financial industry. Thailand should also ensure there is easing of procedures, better protection for investors, and amendments to the existing laws to improve investment conditions. Subsequently, a more aggressive development strategy should be promoted along with policy to build up the competitive advantage in the long run such as by expanding the market supply of products and services, promoting cross-border listing in multiple exchanges in ASEAN, and encouraging merger and acquisition activities as well as promoting capital market connectivity among emerging ASEAN countries.