Bangkok: The Ministry of Commerce announced the removal of nine businesses from the foreign-owned business list, aiming to reduce duplication in permit requirements while maintaining the need for permissions from specific agencies.
According to Thai News Agency, the Ministry's initiative to amend the Foreign Business Act B.E. 2542 (1999) seeks to streamline regulations and remove redundancies in the permit process for foreign businesses. The Ministry emphasized that the change does not equate to a liberalization allowing unrestricted competition with Thai businesses, as foreign entities will still require permits from relevant agencies.
Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, stated that the proposal to remove these businesses from the list is a step towards reducing redundant procedures and increasing business flexibility. The decision was made because existing specific laws and agencies already regulate these businesses.
The businesses are categorized into three groups. Group 1 includes those governed by specific laws, such as telecommunications and futures trading. Group 2 involves services provided exclusively to affiliated companies, like administrative and IT services, which do not directly compete with Thai enterprises. Group 3 covers businesses like leasing space for financial services equipment and petroleum drilling services, limited to concessionaires.
Mr. Poonpong clarified that the objective is to update regulations to align with the current economic context, attract foreign investment, and enhance Thailand's competitiveness. Foreign investors must still seek permits from agencies like the NBTC for telecommunications and the SEC for futures trading, among others. The Ministry of Commerce will no longer issue these permits.
He assured that the Ministry remains committed to protecting Thai businesses and preventing the misuse of Thai nominees or proxy shareholders by foreign entities.