The Ministry of Finance is scheduled to roll out the Thailand Individual Savings Account (TISA) by September to further promote household savings following the success of the government retail bond programme dubbed “Aom Plus” (Savings Plus).
According to Finance Minister Ekniti Nitithanprapas, the ministry aims to finalise the details of the TISA investment framework by September. The primary objective is to encourage long-term savings to ensure individuals have sufficient financial resources for retirement, as the ageing population is growing rapidly.
Currently, around 20% of the population is aged over 60, while the country’s household savings rate remains relatively low.
According to Mr Ekniti, the TISA will differ from previous tax-advantaged investment products such as the Long-Term Equity Fund (LTF), Retirement Mutual Fund (RMF) and Super Savings Fund (SSF).
The new scheme will allow individuals to choose investment options based on their own risk tolerance.
Savings accumulated through the TISA are also expected to support the development of Thailand’s capital market and encourage younger generations to begin investing and saving through the capital market from the start of their working careers.
The government is still considering the tax deduction framework to strike a balance between providing incentives and maintaining fiscal sustainability.
In addition to TISA, the government is also committed to continuing to promote savings through the Savings Bond Plus programme, which opened for subscriptions this week. The issuance will adopt the “small lot first” allocation principle to improve access to government savings bonds for retail investors and the general public.
