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.
