BANGKOK, Thailand – Thailand’s Department of Business Development (DBD) is investigating 15 aromatic coconut businesses suspected of using Thai nationals as “nominees” to bypass foreign ownership laws and manipulate market prices.
The investigation into firms in Ratchaburi, Nakhon Pathom, and Samut Sakhon focuses on suspected foreign-backed control over the supply chain, a practice believed to suppress purchase prices and hurt local farmers.
“The DBD is acting as a whistleblower,” said Director-General Poonpong Naiyanapakorn. “We have forwarded data to the DSI, Central Investigation Bureau, and the Revenue Department for deep-dive inspections into shareholder structures and trade behaviors.”
Under the Foreign Business Act, Thais acting as nominees for foreigners face up to three years in prison and/or fines of up to 1 million baht.
The move comes as Thailand’s aromatic coconut industry faces a “four-fold crisis”: seasonal shortages, price slumps during oversupply, low-cost competition from foreign capital, and counterfeit products. A multi-agency meeting is scheduled for this afternoon to formalize a joint crackdown on illegal nominee structures to ensure fair competition. (TNA)
