The Commerce Ministry confirms that the Cabinet approved removing 9 service businesses from the annex of the Foreign Business Act. This is not a liberalization allowing foreigners to dominate Thai businesses, but a move to reduce legal redundancies. Specific laws and agencies will continue to supervise these businesses, which mainly serve group companies and do not compete with Thai businesses. Foreign investors still need permits from regulatory agencies as before.
Mr. Poonpong Nainapakorn, Director-General of the Department of Business Development, revealed that the Commerce Ministry through the Department proposed to the Cabinet the removal of 9 service businesses from the annex of the Foreign Business Act B.E. 2542 (1999), and the Cabinet approved. This is not liberalizing to let foreigners take over Thai businesses but is a regulatory adjustment to eliminate legal overlaps and increase flexibility for foreign investors to invest legally in Thailand. It aims to attract investment capital and advanced technology to develop Thai labor and business potential to compete internationally, aligning with the government's investment promotion policy.
However, even with these businesses removed from the annex, foreign investors must register a legal entity with the Department of Business Development and still need permits from relevant regulatory agencies. For example, telecommunications businesses require permission from the National Broadcasting and Telecommunications Commission (NBTC); money management centers must get approval from the Bank of Thailand (BOT); securities and futures trading businesses must be authorized by the Securities and Exchange Commission (SEC); and petroleum drilling requires the Ministry of Energy's approval.
They no longer need to obtain business operation permits under the Foreign Business Act B.E. 2542 from the Commerce Ministry. This significantly reduces redundant licensing processes and enhances the country's competitiveness.
“The Commerce Ministry assures that this measure prioritizes national interests by protecting Thai operators and business sectors not yet ready to compete with foreigners, preventing unfair disadvantages. It helps balance and reduce inequality in business operations, while attracting more foreign investment into Thailand. This will stimulate fair competition, giving consumers better access to quality goods and services,” the ministry stated.
Moreover, foreign investors will not only bring capital but also advanced technology and business experts to Thailand. Technology transfer and expertise sharing with Thai operators and employees will enhance specialized skills in the Thai workforce. This will develop Thai businesses and promote Thailand as a regional and global service and investment hub in the future. Meanwhile, serious efforts continue to prevent and combat businesses intentionally circumventing laws by using Thai nominees on behalf of foreigners.
The 9 businesses are divided into 3 groups: Group 1 includes those with specific laws and regulatory agencies, such as telecommunications services under the Telecommunications Business Act, money management centers under the Foreign Exchange Control Act, lending businesses secured by securities under the Securities and Exchange Act and Futures Trading Act, futures brokerage and consultancy services not under the Futures Trading Act B.E. 2546 (2003), and agricultural commodity futures trading at designated warehouses under the Futures Exchange Act.
Group 2 provides services exclusively to affiliated companies within the group, including administrative management, human resources, and information technology services, as well as domestic debt guarantees for affiliated companies. These services are internal to corporate groups and do not compete with Thai businesses. Group 3 includes other services such as leasing space for installing electronic financial service machines, vending machines, or automated services primarily for company employees’ convenience, and petroleum drilling services exclusively for concession holders.
Of these 8 businesses across the 3 groups, proposals will be submitted as draft ministerial regulations, except for agricultural commodity futures trading in Group 1, which will be proposed as a draft royal decree.
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