Complex regulations keeping companies away from stock market

First, to maintain a business-friendly environment, the upcoming budget should not impose any additional tax burden. Given the government's pressure to increase revenue, we are not calling for tax cuts. Our only request is that no new taxes be introduced in the budget.

Second, the incentive package announced by the government for closed companies should also be extended to firms facing working capital shortages. Many companies are still operating but cannot run at full capacity due to a lack of working capital.

So, the incentive aimed at creating employment should not be limited to closed companies alone. Firms that are unable to operate their factories fully because of financial constraints should also be eligible.

If a closed company can create jobs after receiving fresh funding, an existing company can generate even more employment. These businesses are already providing jobs, but many have reduced their workforce because of financial difficulties. Some have strong demand for their products but cannot maximise production due to a lack of funds to purchase raw materials.

To achieve the full benefits of the fund, the government should support both closed companies and those suffering from working capital shortages. This would have a positive impact on employment generation.

Third, to energise the capital market, the IPO approval process for companies seeking to raise capital should be reduced to a maximum of five months. At present, obtaining approval for an IPO takes at least 14 months, whereas securing a bank loan requires far less time. Therefore, the IPO approval timeline must be shortened to ensure easier access to long-term financing.

On capital market development, there are currently several unnecessary regulations that discourage many companies from seeking listing.

Take my own case as an example. I have three companies and want to list all of them on the stock market. However, under the commission's rules, I can serve as managing director of only one company. Why? 

The regulations require me to appoint a family member as managing director of the other two companies, even if they have no interest in the business. Complying with such a rule does not improve the business and discourages multiple companies within the same group from entering the capital market.

The new law proposes increasing the number of independent directors on company boards. Yet even the requirements under the existing law are often difficult to meet. Although independent directors bear little responsibility, many qualified individuals, particularly university teachers and established professionals, are reluctant to join company boards. As a result, new regulations are creating additional complexity, while companies are struggling to remain compliant.

Therefore, regulations governing the capital market should be simplified so that more companies are encouraged to seek listing.