Bangkok: Deputy government spokesperson refutes "Sonthi's" claim that reducing redundant permits is not "giving economic sovereignty to foreigners," emphasizing that state power remains, laws still control the situation, and using nominees is still illegal.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, addressed Mr. Sondhi Limthongkul's criticism of the ministerial regulations concerning foreign business operations. Mr. Sondhi claimed that the government was "giving economic sovereignty to foreigners." Ms. Lalida clarified that the reduction in redundant permit procedures for specific businesses does not equate to relinquishing Thailand's regulatory power to foreigners. She affirmed that foreigners are not freely allowed to engage in any business they choose, as specific laws and government oversight remain intact.
Ms. Lalida emphasized the distinction between 'reducing redundant licenses' and 'giving regulatory power to foreigners,' asserting that these are separate issues. She stated that economic sovereignty does not vanish simply by reducing one license, and the Thai state continues to regulate, inspect, and enforce laws against foreign businesses.
The deputy government spokesperson explained that there is a difference between "not needing permission under the Foreign Business Act" and "not being subject to government laws or supervision." The exemptions aim to streamline permit procedures for businesses already under specific laws or regulatory mechanisms, without allowing foreigners to conduct business without oversight.
Ms. Lalida also addressed concerns about "nominees," clarifying that the amended law does not legalize the concealment of foreign shareholders. The Foreign Business Act still prohibits assisting foreigners in evading restrictions or using nominees to conduct unauthorized businesses. The new ministerial regulation does not repeal existing provisions.
She further explained that if a law allows foreigners to conduct certain businesses directly, there is no need to use nominees to hide shareholder nationality. However, if a company uses Thai nationals as nominees to circumvent laws in restricted businesses, such actions remain illegal.
Ms. Lalida assured that the regulation does not repeal anti-money laundering laws, tax laws, or the investigative powers of relevant agencies. Illegal activities remain illegal despite streamlined permit procedures.
Addressing concerns about the impact on Thai SMEs, the deputy spokesperson noted that the government is monitoring and evaluating potential effects on competitiveness, employment, and Thai businesses. She cautioned against concluding that all SMEs in HR and IT sectors will suffer without supporting data or evidence.
During the regulation's deliberation, software development businesses were removed from the draft following concerns about the impact on the digital industry and Thai entrepreneurs. This illustrates the government's consideration of feedback and adjustment of details before proceeding.
Ms. Lalida emphasized that the government will monitor the benefits of these measures, including employment, skills development, technology transfer, and fair competition, to ensure that reducing business obstacles benefits the Thai economy.
She reiterated that the government has not exempted foreign capital from regulation nor suggested that foreign investment will not impact Thai businesses. The government aims to welcome beneficial investments while maintaining robust regulations. She urged that extending the issue of reducing redundant licenses to 'giving economic sovereignty to foreigners' is an overstatement beyond the ministerial regulations.
The deputy spokesperson affirmed that questioning foreign investment is permissible and the government is open to listening. This includes questions about benefits to Thais, the impact on SMEs, and the sufficiency of the regulatory system, but discussions should be grounded in an accurate understanding of the law.
Ms. Lalida concluded that criticism is welcome, but it should reflect the law accurately. Reducing redundant licenses does not diminish national sovereignty, and opening investment under set rules is not about ceding economic power to foreigners. The state continues to set rules, regulate, and apply Thai law to all businesses operating in Thailand.