Posters displayed along a Bangkok street promote parties running in the country’s upcoming election scheduled for Feb 8.

With the Feb 8 general election on the horizon, equity analysts and investors are watching the economic and capital market proposals of major political parties, which collectively strike a broadly pro-investment tone.

Across the political spectrum, parties agree on the need for structural reforms aimed at strengthening governance, lifting market liquidity and modernising Thailand’s financial system.

Representatives from eight parties signalled market-friendly policies, offering cautious optimism for investors.

However, analysts noted while these proposals could help restore confidence in the Thai capital market, any sustained recovery in Thai equities would ultimately depend on policy execution, regulatory consistency and political stability, rather than campaign rhetoric.

COMPETING PATHS TO GROWTH

Nikorn Sachdev, a party-list MP candidate of the Klatham Party, said the party’s economic and capital market policies focus on enhancing transparency and promoting sustainable growth.

Key proposals include the use of artificial intelligence (AI)-driven surveillance to improve market transparency, shifting investment incentives towards long-term investing and aligning capital market development with "Made in Thailand" initiatives and the Eastern Economic Corridor (EEC).

"We will continue effective policies from past governments and place strong emphasis on good governance, ensuring Thailand’s capital market and economy grow in a stable and sustainable manner," he said.

Kanate Wangpaichitr, head of the economics team at the Thai Kao Mai Party, said the party aims to strengthen the institutional foundation of Thailand’s capital market. Its proposals include the establishment of a Capital Market Court to accelerate securities-related cases, measures to boost liquidity through infrastructure funds, small and medium-sized enterprise (SME) support and a greater role for capital markets in shaping national economic strategy.

"We will bring together the Stock Exchange of Thailand [SET], the Board of Investment and the EEC board to create a new investment strategy and build a modern structure that enables SMEs and startups to grow in Thailand, without the need to relocate or list overseas," said Mr Kanate.

Anucha Burapachaisri, a party-list MP candidate from the Bhumjaithai Party, said the party plans to continue its reform agenda by strengthening corporate governance laws and director accountability, launching the Thailand Individual Savings Account (TISA), a new long-term personal savings account, and building a comprehensive Thai wealth-creation structure.

"We will ensure policy continuity from the current government and place strong emphasis on good governance to support stable and sustainable growth of the Thai economy," he noted.

Korn Chatikavanij, deputy leader of the Democrat Party, said his party’s policies are aimed at restoring market confidence and reinforcing Thailand’s credibility among investors. With this goal, it plans to strengthen anti-corruption enforcement, liberalise markets to expand investment choices and ensure fair trading rules for high-frequency trading and short selling.

"Under our leadership, Thailand has successfully navigated economic crises, and the stock market once rose by as much as 145%. This demonstrates proven economic management, not just promises," Mr Korn said.

Atavit Suwanpakdee, deputy leader of the United Thai Nation Party, highlighted the revival of long-term equity funds (LTFs) in a new five-year format for capital market policies, along with an overhaul of credit-scoring systems to increase competition in the banking sector.

The party views high energy costs and limited financial access as key structural constraints on growth. Its economic policies include support for S-curve industries and clean energy.

"Without affordable clean energy, electricity costs will remain high, innovation will stagnate and GDP growth will suffer. We are ready to drive policies that deliver real benefits to the people," he said.

Paopoom Rojanasakul, deputy leader of the Pheu Thai Party, said it aims to boost economic growth by accelerating financial innovation and expanding access to capital markets. Its proposals include advancing digital capital markets, including G-Tokens, generating new demand in equity and bond markets, and simplifying initial public offering (IPO) rules to improve SME access to funding.

"We represent a safe and reliable choice to unlock Thailand’s true economic potential," he said.

Chaiwat Sathawornwichit, deputy leader and party-list MP candidate of the People’s Party, said the party focuses on improving market fairness and regulatory integrity.

Key measures include reducing trading friction through speed-bump mechanisms, introducing Tax Individual Accounts to replace LTFs and safeguarding the independence of the Securities and Exchange Commission.

"When you invest, you consider who manages your assets. Likewise, voters should choose a party with capable administrators who can manage the country professionally and sustainably," noted Mr Chaiwat.

Suradech Taweesaengsakulthai, head of economic strategy at the Thai Sang Thai Party, said the party’s proposals include creating a force-sell prevention fund during market crises, promoting licensed market makers to enhance liquidity and advancing tokenisation of agricultural products.

"We focus on policies that can truly change Thailand’s economy through innovation and tangible results, not just rhetoric," he said.

ANALYSTS’ VIEWS

KGI Securities observed that most parties’ policies converge around three themes including reducing household debt, increasing the use of AI and technology, and tackling corruption to restore investor confidence.

The brokerage raised concerns that election campaigns are dominated by populist policies aimed at short-term popularity, with limited emphasis on upgrading Thailand’s economic structure or enhancing long-term competitiveness.

"Excessive spending on ineffective populist measures could widen the budget deficit and crowd out investment in productivity-enhancing reforms," it warned.

From KGI’s perspective, policies that focus on governance, technology adoption and structural competitiveness – rather than consumption-driven stimulus – are more supportive of sustainable capital market growth.

Asia Plus Securities (ASPS) said four policy areas are critical to revive confidence and liquidity.

First is judicial and legal reforms. Thai Kao Mai’s proposal to establish a Capital Market Court directly addresses one of the market’s biggest pain points, which is slow legal enforcement.

"Faster prosecution of stock manipulation, accounting fraud and governance violations would significantly deter misconduct and restore confidence," said ASPS.

Second, the Thai market needs long-term institutional liquidity.

"We support the broad consensus – shared by Thai Kao Mai and United Thai Nation – to revive long-term equity funds. Such funds could stabilise the SET index amid foreign fund outflows and reduce volatility driven by short-term new flows," noted the brokerage.

The third area is digital transformation of capital markets. The policies of Pheu Thai and Thai Sang Thai, which emphasise digital assets and tokenisation, are seen as constructive steps towards modernising the market, attracting younger investors and opening new fundraising channels for SMEs, ASPS noted.

Finally, regulatory guillotine is required to streamline regulations and reduce bureaucratic steps. Many parties’ proposals shared the same view that complex procedures currently prevent SMEs from accessing capital markets efficiently.

ASPS noted a confidence revival must start with the swift establishment of a Capital Market Court and the reintroduction of tax-saving long-term equity funds, which would serve as the first tangible signals of reform.

"Thailand’s stock market is suffering from deep structural weaknesses, including declining equity valuations, weak foreign investor confidence and repeated governance failures among listed companies. In our view, short-term stimulus measures are insufficient – what the market urgently needs is institutional reform," said the brokerage.

Krungsri Securities (KSS) adopted a bullish medium- to long-term view, expecting the next four years of economic and capital market reforms could help reduce Thailand’s country risk premium and support a valuation re-rating of Thai equities if the proposed policies are implemented effectively.

Policy impacts are grouped into three pillars, the first being long-term liquidity. Almost all parties propose mechanisms to build domestic investment flows, which would support large-cap stocks in the near term.

Second, parties agreed that stricter enforcement and clearer governance frameworks would help restore investor trust. The third pillar is innovation and new listings.

"Accelerating IPOs of high-potential companies and promoting tokenisation could unlock the next phase of market growth," KSS stated. "If implemented effectively, these measures could unlock Thai equity market value in the next phase."

CREDIBLE ENFORCEMENT REQUIRED

Kobsak Pootrakool, chairman of the Federation of Thai Capital Market Organizations, said Thailand’s stock market faces multiple structural challenges.

"IPO activity is at a historic low, confidence has been periodically undermined by governance-related issues and market returns have remained negative for three consecutive years," he said.

Looking ahead, Mr Kobsak said the new government must prioritise restoring confidence in the capital market by enforcing laws more rigorously and strengthening both legal and tax incentives.

What the market wants to see is credible enforcement, stronger governance and comprehensive support for all forms of investment.

"Only then can confidence in Thailand’s capital market be sustainably rebuilt," he said.

Mr Kobsak also supported the establishment of a Capital Market Court, reviving LTFs and promotion of new S-curve industries.

Kitipong Urapeepatanapong, chairman of the SET, also had policy recommendations for the new government. The first is legal reform to revive confidence, while establishing a specialised committee or war room in charge of the capital market.

He also proposed restructuring of taxes and investment incentives to make them more appealing to investors. The fourth proposal is accelerating the transition to the new economy.

Mr Kitipong also shared the same concern with some analysts, warning against economic policies solely focused on cash handouts.

The Investment Analysts Association (IAA) proposed three key policy priorities for the next government.

A recent IAA survey of investment analysts and fund managers from 24 institutions indicated support for targeted household debt restructuring, introducing clearer guidelines for TISA and separating retirement savings from speculative investments, said secretary-general Sombat Narawutthichai.

The second area is support for the business sector by stimulating private investment through conditional incentive measures such as tax benefits, promoting targeted industries and expanding public-private partnership mechanisms.

Government investment projects ranked third, with the IAA recommending infrastructure investment, particularly in mass transit systems and water management, while supporting new S-curve industries, he said.