PATTAYA, Thailand – Thailand’s Ministry of Commerce has clarified that its proposal to remove nine business categories from the annex of the Foreign Business Act B.E. 2542 (1999) is intended to reduce overlapping licensing procedures, not to fully liberalize sectors for foreign competition against Thai operators.
Poonpong Naiyanapakorn, Director-General of the Department of Business Development, said the proposal has been submitted to the Cabinet for consideration because many of the businesses are already regulated under sector-specific laws and supervised by specialized agencies.
He explained that the move aims to streamline investment procedures and improve ease of doing business for foreign investors operating legally in Thailand, while maintaining regulatory oversight through existing authorities.
The nine business categories are divided into three groups.
The first group covers sectors already governed by specific laws, including telecommunications services, treasury center operations, secured lending businesses, derivatives trading services, and agricultural futures trading businesses.
The second group includes services provided exclusively within affiliated companies, such as administrative services, human resources, information technology support, and domestic debt guarantee services for group companies. Authorities said these operations do not directly compete with Thai businesses.
The third group covers other specialized activities, including leasing space for electronic financial service machines or vending machines within business premises, as well as petroleum drilling services provided only to concession holders.
Poonpong stressed that foreign investors would still be required to obtain approvals from relevant regulators under existing laws. For example, telecommunications businesses would remain under the supervision of the National Broadcasting and Telecommunications Commission, treasury centers under the Bank of Thailand, securities and futures businesses under the Securities and Exchange Commission, and petroleum drilling under the Ministry of Energy. “The proposal only removes the need for duplicate approval from the Ministry of Commerce,” he said. He added that the ministry remains committed to protecting sectors where Thai businesses are not yet ready to compete internationally, while continuing strict enforcement against illegal nominee shareholding arrangements involving Thai nationals. (TNA)
