Thailand Plans New Savings Plan Like Japan's

Thailand plans to start a new savings plan called TISA, where people can invest up to 600,000 baht each year in different financial products.

This plan is like Japan's Nippon Individual Savings Account and aims to encourage people to invest for the long term instead of keeping their money in bank accounts.

The idea for this plan was first introduced about a year ago when Thailand's stock market was not doing well due to political issues.

People and a dog wait to cross a road in Bangkok on December 15, 2022.

The head of the Securities and Exchange Commission said they want to encourage people to invest by offering tax benefits.

This plan also helps address the growing problem of retirement and pension gaps as the population ages faster.

Thailand has one of the fastest-aging populations in Asia and faces increasing costs for elderly care and pensions.

Last year, the number of elderly people in Thailand surpassed the number of young people.

There are now 13.6 million people aged 60 and above, and 9.5 million children under 15, according to the population analysis.

Officials think that encouraging long-term investments can improve retirement security and bring more money into the country's markets.

Thailand already offers tax benefits for people who invest in certain retirement funds, which hold about 725 billion baht in assets.

The new plan, TISA, will offer tax benefits for direct investments in stocks and bonds, replacing old tax-saving funds.

The government is also considering special accounts for children that are tax-free, where parents can invest up to 200,000 baht each year until the child is 20.

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