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 Home > About Thailand > Economy > The Capital Market

THE CAPITAL MARKET

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The Securities Exchange of Thailand (SET) was established in 1974 under the supervision of the ministry of Finance and the Bank of Thailand. In 1993, there were 347 companies listed on the SET. Its trading volume expanded rapidly in the early period of its establishment, and, recently it has become popular with offshore investors. Capital gain tax is not levied on profit on sale of listed securities on the SET. Dividends received from listed companies also receive favourable treatment.

To closely monitor and supervise the operations of SET, the Office of the Securities and Exchange Commission (SEC) was established in 1992. In the same year, to give new dimension to the capital market, seven mutual fund management companies were licensed to give the general public a chance to participate in the investment through Unit Trusts.


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THE ROLE OF THE PUBLIC SECTOR

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Thailand is predominantly a free market economy with the private sector generating most of the economic activity. Public sector involvement is largely limited to providing a framework for the economy's regulation and expansion. The government's major contribution to economic growth has been to provide economic and social services, most notably to build highways, irrigation, and power facilities as well as to provide various incentives and financial assistance to promote private investments, export businesses and agricultural enterprises. In 1993, total government expenditure was 15.8 percent of the GNP.


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INFRASTRUCTURAL SUPPORT

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Irrigation. During the period of the first two development plans, the irrigation service area increased from 1.5 million hectares in 1964 to two million hectares in 1974. By the end of 1993, the irrigated area was 4.24 million hectares which is 18 percent of the entire agricultural area. Most of the irrigation service areas are in the central and northern regions fed by tributaries of the Chao Phraya River. Areas in the Northeast irrigated by canals came to about 13 percent of the total.

About 3.4 million hectares have access to gravity irrigation, and 92,800 hectares of these are under an intensive on-farm development programme known as the Land Consolidation Project. Within gravity irrigation servicing areas, major structures such as reservoirs, diversion dams and main canals have been built.

Investment in on-farm development is generally required to enhance the effectiveness of the system.

Pumping irrigation is another important technique in the irrigation system. This technique was first implemented in 1973. In 1993 pumping stations serviced 500,000 hectares. The northeastern region benefits most from this service.

In addition, underground reserves provide a significant amount of irrigation water in certain areas. It is estimated that farmland irrigated by ground-water at present amounts to 1,600 hectares. Farm ponds are also used to supplement rainfall for many areas of the dry Northeast.

 

If you want to read some interesting topics, select the following information :

                        Bounty of the Land and 
                        Sea | Sector Performance 
                        | The Agriculture and 
                        Mining Sectors | Major 
                        Crops | Livestock 
                        | Forestry | Fisheries 
                        | Mining | The 
                        Manufacturing Sector | Tourism 
                        | The Organized Financial 
                        Market | The Bank 
                        of Thailand | Other Sources 
                        of Finance | The Capital 
                        Market | The Role of the 
                        Public Sector | Infrastructural 
                        Support | Public Utilities 
                        | Government Incentives 
                        and Financial Assistance | Foreign 
                        Trade and Balance of Payments | Conclusion 
                      


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