Finance Ministry plans ESG-linked LTF to boost investor confidence

Ministry developing plans to establish a 180-billion-baht long-term equity fund

 

The Finance Ministry is developing plans to establish a 180-billion-baht long-term equity fund (LTF) within the Thai ESG (environmental, social, and governance) framework, aiming to support investors during market downturns.  

 

Finance Minister Pichai Chunhavajira announced that the ministry is exploring a policy to revamp existing LTFs, potentially transferring them into a new fund linked to Thai ESG principles. 

 

This new fund would consolidate the current LTF market, which holds around 180 billion baht.
  

The LTF scheme, initially designed to incentivise long-term stock-market investment through tax deductions, has seen its value decline recently, prompting some investors to sell. A significant portion of LTF investments are concentrated in blue-chip stocks listed on the SET 100 index.

 


"Investors considering selling may wish to reconsider. Remaining invested within the Thai ESG framework will also offer tax benefits, potentially over a five-year period. This is currently under review, and we anticipate making an announcement shortly," Pichai said. 
 
 

He added, "Given the recent market downturn, investors can still benefit from tax advantages by keeping their investments within the Thai ESG fund. I encourage investors to explore this option."

(2025/02/11-00:00)