Thailand launches new investment fund to bolster stock market.

The Cabinet has approved the launch of the “Thai ESG Extra” fund, designed to encourage investment in sustainable and high-growth equities through substantial tax incentives. 

This initiative aims to support Thailand’s domestic stock market amid global economic uncertainty. 

Investors will be able to transfer existing holdings from long-term equity funds (LTFs), which currently amounts to approximately 180 billion baht, into the Thai ESG Extra fund.

This transfer qualifies for a tax deduction of up to 500,000 baht. Investors can claim 300,000 in the 2025 tax year, with the remaining 200,000 baht available for deduction in subsequent years at 50,000 baht annually.

New investments in the Thai ESG Extra fund will also be eligible for a separate tax deduction of 300,000 baht in the 2025 tax year, provided the units are purchased between May and June.

At a press conference on Tuesday, Finance Minister Pichai Chunhavajira explained that the fund was established in response to increased global market volatility, particularly due to US President Donald Trump’s trade policies. 

He also referenced the success of the Vayupak Fund, which helped stablise the Thai market in 2024, and expressed confidence that the Thai ESG Extra fund – focusing on sustainable growth and technology-driven companies – would help alleviate selling pressure on the market. 

The government hopes the new fund will encourage long-term investment in key sectors, while providing investors with attractive tax incentives during a period of market uncertainty.