Kittiratt against plan for SET to go public

Kittiratt against plan for SET to go public

Deputy Prime Minister Kittiratt Na-Ranong expressed strong disagreement yesterday with the plan to float the Stock Exchange of Thailand's shares.

Mr Kittiratt, a former president of the SET, said the policy to turn the SET into a public company could weaken the Thai bourse in the long run.
Under the current management, he said, the SET was highly competitive with other regional stock markets and had a strong financial status.
But once the SET becomes a public company, the fund-raising will bring in a huge number of new shareholders while reducing the role of member brokerage firms and other top-notch personnel in the SET's management.
"Since the new management comes from everywhere," said Mr Kittiratt, "how could we guarantee their capabilities in managing the SET to move ahead with a stronger financial status?"
He said it was a risk that the new management would be unable to manage the SET's current huge fund of 20 billion baht.
Mr Kittiratt agreed, however, with other capital market development plans.
Meanwhile, Charamporn Jotikasthira, the SET president, insisted that the privatisation was essential for the SET to improve its long-term competitiveness.
"Free-market competition is inevitable, we have to accept that, but to only accept it is not enough," he said. "We have to keep moving ahead with the regional standard while developing the market to ensure our strong positioning amid the tough competition and a rapidly changing landscape.
"I believe that the current structure of the SET needs a change to stay competitive, but there are many ways of change, and we can discuss all relevant issues to seek the best solution."