Bangkok: The government has clarified that the draft ministerial regulation on foreign business is not a complete liberalization. It emphasizes that the regulation will remain under specific laws, maintaining strict controls on all key businesses.
According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, addressed the dissemination of information suggesting that the government is allowing foreigners to conduct business without permission. She explained that this is a misunderstanding of the draft regulations under the Foreign Business Act B.E. 2542 (1999). The draft law is not about liberalizing business operations for foreigners without regulation but amending certain business categories, mostly high-tech businesses or those already under specific laws and government oversight. The aim is to reduce duplication in licensing procedures, facilitate business operations, and adapt regulations to the modern economic context.
Exempted businesses are still required to comply with specific laws. For instance, telecommunications businesses are under the supervision of the National Broadcasting and Telecommunications Commission (NBTC), money management businesses are regulated by the Bank of Thailand, securities and derivatives trading businesses are overseen by the Securities and Exchange Commission (SEC), and petroleum drilling businesses remain under strict laws and energy agency supervision.
Ms. Rachada stated that the aim is to reduce redundant procedures, increase investment flexibility, and enhance the country's competitiveness. She clarified that the government is not abolishing regulations or allowing foreigners to conduct business without conditions. The government remains committed to protecting Thai entrepreneurs. In the case of software development businesses, the Ministry of Commerce has removed this from the draft ministerial regulation after concerns from relevant agencies regarding its impact on Thailand's digital industry, to balance promoting investment and safeguarding domestic business competitiveness.
This regulatory revision has five key strategic objectives: reducing unnecessary permit procedures, enhancing fair and transparent competition, attracting high-level technology and expertise to Thailand, supporting Thailand's transformation into a regional service base and business hub, and generating benefits for the overall economy, investment, and employment.
'The government affirms that all economic measures must go hand-in-hand with protecting the interests of the country, Thai businesses, and economic stability. This regulatory revision aims to enhance the effectiveness of oversight, not to allow uncontrolled liberalization as has been mistakenly understood,' Ms. Rachada said.