Bangkok, December 29, 2024 — The Stock Exchange of Thailand (SET) has faced a tumultuous year, marked by significant scandals that have undermined investor confidence and led to a notable decline in market performance. Compared to other markets in Asia and ASEAN, the SET has struggled, with performance indicators lagging behind its regional counterparts.
Overview of the Market in 2024
Throughout the year, the SET has experienced a downturn in performance. Market indices have underperformed, and trading volumes have decreased, reflecting a broader lack of investor confidence. Factors such as global economic uncertainties, local political instability, and concerns about regulatory effectiveness have compounded the market’s woes. Compared to the robust growth observed in other ASEAN markets, the SET’s performance has been notably poor.
Scandals That Shook the Market
Dr. Boon Vanasin and Thonburi Healthcare Group
Date: November 2024
The Case: Dr. Boon Vanasin, chairman of Thonburi Healthcare Group (THG) and co-founder of Thonburi Hospital, was accused of fraud and money laundering and was later charged on December 14. He and his associates allegedly misled investors into pouring funds into non-existent medical businesses, promising high returns and issuing post-dated cheques that later bounced. The financial damage from this fraud is estimated at around 7.5 billion baht.
Impact: The scandal severely damaged investor trust in the healthcare sector and led to massive volatility in THG shares. The market reacted with caution, leading to broader skepticism about other healthcare-related stocks.
The Energy Absolute (EA) Scandal
Date: The Securities and Exchange Commission (SEC) of Thailand filed a criminal complaint against Energy Absolute (EA) directors and executives on July 12, 2024. However, the scandal began in 2016.
The Case: CEO Somphote Ahunai and his deputy Amorn Sapthaweekul of Energy Absolute (EA), a leading renewable energy company, faced fraud charges. The allegations involved procurement fraud related to solar power equipment and software for projects in Nakhon Sawan and Lampang provinces between 2013 and 2015. EA’s share price plummeted by nearly 95%, and the company found itself 81 billion baht in debt.
Impact: The scandal led to a severe erosion of confidence in the renewable energy sector. EA’s share price volatility contributed to overall market instability, and the case highlighted significant oversight gaps in corporate governance within the industry.
The Stark Corporation Debacle
Date: The Stark case unfolded in multiple stages, starting in July 2023 and continuing through September 2024:
July 6–7, 2023: The Department of Special Investigation (DSI) issued summons to key suspects to face charges.
June 20, 2023: The DSI accepted it as a special case.
September 18, 2024: The SEC charged five former Stark executives with publishing false information about the company’s financial status.
The Case: Stark Corporation faced allegations of accounting fraud and financial mismanagement.