Finance Ministry set to cash in: £400bn portfolio gets a stock-over

In a bold new move, the Finance Ministry is gearing up to overhaul its colossal 400 billion baht stock portfolio, hinting at potential sell-offs. This announcement comes straight from Finance Permanent Secretary Lavaron Sangsnit, who let the cat out of the bag.

Lavaron, a key player in the State Securities Management and Development Committee within the State Enterprise Policy Office (SEPO), recently helmed the committee’s maiden meeting. They rolled up their sleeves to craft a game plan for tweaking the ministry’s portfolio, which includes both publicly listed and non-listed securities.

The mission? To crank up the portfolio’s value and bring maximum benefits to the nation. The committee aims to decide within two weeks which stocks to keep and which to offload, meticulously evaluating their current and future prices before hitting the sell button, said Lavaron.

“If future prices are not expected to rise and the ministry is incurring costs to manage these stocks, they may be considered for sale.”

Lavaron added that stocks generating income or holding strategic importance to government policy will generally be retained. Sepo holds more than 100 stocks in its portfolio, requiring a comprehensive portfolio plan, which may entail selling off some stocks entirely or reducing their holdings.

The portfolio, excluding state enterprises, comprises 33 securities listed on the stock exchange, 41 unlisted securities, and another 41 acquired through legal action, such as asset seizures under anti-money laundering laws. The combined value of these holdings is nearly 400 billion baht, with more than 340 billion belonging to the Vayupak Fund and the remainder in other securities.

Tibordee Wattanakul, SEPO Director-General, emphasised that the management of these securities will align with cabinet resolutions and relevant laws, including maintaining stocks related to the Finance Ministry’s mission, beneficial stocks, or those providing high returns.

“Other stocks may be sold off by the ministry.”

Previously, Deputy Finance Minister Paopoom Rojanasakul advised SEPO to consider selling part of the stock portfolio held by the ministry to improve asset management efficiency.