The Deputy Government Spokesperson rebutted Sonthi's claim that reducing redundant licenses equates to "ceding economic sovereignty to foreigners," stressing that state power remains, laws still govern, and nominee shareholding remains illegal.
On 7 Sep 2026 GMT+7, Ms. Lalida Perdiwattana, Deputy Spokesperson of the Prime Minister’s Office, responded to Mr. Sonthi Limthongkul’s criticism of the ministerial regulation regarding foreign business operations. She stated that simplifying redundant licensing steps in certain sectors does not mean Thailand surrenders economic control to foreigners, nor does it allow foreigners unrestricted business operations, because specific laws and state oversight powers remain in place.
"We must distinguish clearly between ‘reducing redundant licenses’ and ‘ceding regulatory power to foreigners,’ as these are entirely different matters. Economic sovereignty is not lost by removing one license. Thailand still sets the rules and retains the authority to supervise, inspect, and enforce laws on foreign businesses," Ms. Lalida said.
The Deputy Spokesperson emphasized the difference between ‘exemption from licenses under the Alien Business Act’ and ‘exemption from laws or state oversight.’ The exemptions target reducing redundant licensing when the business is already regulated by specific laws or government agencies. This does not mean foreigners can operate without conditions or controls.
"As long as the state enacts laws, sets conditions, issues licenses under specific laws, monitors, and punishes offenders, how can this be called ceding economic sovereignty to foreigners? What is removed are redundant procedures, not state authority," the Deputy Spokesperson explained.
Ms. Lalida also clarified concerns regarding nominee shareholding. The regulation changes do not legalize disguising foreign shareholders. The Alien Business Act still criminalizes assisting foreigners to evade restrictions or holding shares on their behalf without authorization. The new ministerial regulation does not repeal these provisions.
If a business is legally open to foreigners, there is no need to use nominees to hide foreign ownership. However, if a company uses Thai nominees to bypass laws reserving or restricting certain businesses, such acts remain illegal.
"The public should not be misled into thinking this regulation legalizes nominees because it does not. Existing illegalities remain illegal. Reducing business procedures does not remove laws preventing foreign capital evasion," Ms. Lalida stated.
The Deputy Spokesperson added that concerns about money laundering, profit transfers, or tax avoidance are also unfounded regarding the regulation. It does not repeal anti-money laundering laws, tax laws, or inspection powers. Illegal acts do not become legal simply due to reduced licensing steps.
Regarding worries that opening certain business sectors to foreigners will harm Thai SMEs, the Deputy Spokesperson said the government sees this as a serious issue requiring monitoring and assessment, including impacts on competition, employment, and Thai entrepreneurs. However, premature claims that HR and IT SMEs will “all die” require economic data and empirical evidence rather than speculation presented as certainty.
During the review process, the government listened to concerns about impacts on Thai entrepreneurs. For example, software development businesses previously included in the draft were removed before cabinet approval due to worries about effects on the digital industry and Thai operators. This shows that the process does not blindly open doors to foreign capital without considering impacts, but involves listening and adjusting details before implementation.
The Deputy Spokesperson said the government must continue monitoring the outcomes clearly to ensure Thailand benefits from these measures, including Thai employment, skills development, knowledge and technology transfer, fair competition, and the impacts on SMEs and Thai entrepreneurs, so that reducing business obstacles truly benefits the Thai economy.
"The government does not say foreign capital should be unregulated or that foreign investment will have no impact on Thai entrepreneurs. The government’s role is to welcome investment that benefits the country while maintaining strong rules and oversight. But exaggerating the reduction of redundant licenses as ‘ceding economic sovereignty to foreigners’ goes beyond what the ministerial regulation stipulates," Ms. Lalida said.
The Deputy Spokesperson stressed that questioning foreign capital is valid and the government is open to hearing concerns about benefits to Thai people, impacts on SMEs, or the sufficiency of existing oversight. However, discussions should start from the full facts of the law. The phrase ‘exempt from licenses under the Alien Business Act’ should not be misinterpreted as ‘foreigners are exempt from Thai law.’
"Criticism, scrutiny, and questioning the government are welcome, but must be based on the law as written. Reducing redundant licenses does not reduce national sovereignty, and allowing investment under regulations is not ceding economic power to foreigners. The state sets the rules, supervises, and Thai law applies to everyone doing business in Thailand," Ms. Lalida concluded.