Thailand is set to finalise a new ESG fund in the first quarter to ease selling pressure from maturing long-term equity funds (LTFs), a factor contributing to the Thai stock market’s 10% decline this year. The Finance Ministry is considering tax incentives for LTF holders transferring investments to the ESG fund instead of selling. LTF units worth THB180bn (USD5.352bn) remain unsold, down from THB240bn at the end of last year. ESG funds invest in Thai equities and debt securities meeting sustainability criteria, with investors eligible for tax deductions. The ministry also aims to drive economic growth to 3.5% in 2025 by accelerating investment projects. Last year, investment promotion applications rose 40% to THB1.14tr, with approved projects valued at THB850bn.