Leading Thai economists have expressed support for the government’s push to establish Thailand as a regional financial hub through the recently approved principles of the Financial Business Centre Act.

The draft law aims to enhance the country’s competitiveness by attracting foreign investment, creating jobs, and stimulating economic growth.

Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Securities, acknowledged the potential benefits of the initiative but noted that outdated laws and restrictive regulations remain significant obstacles.

He pointed to the robust legal frameworks and judicial systems in established financial centres such as Singapore and Hong Kong, and stressed the need for Thailand to open its financial sector to foreign competition.

Pipat also highlighted the importance of modernizing payment systems to offer diverse methods, including facilitating cross-border transactions in multiple currencies and digital assets.

Pacharapoj Nantaramas, executive vice president and chief economist at Krungthai Bank, supported a “sandbox” approach to test various financial models and recommended streamlining processes for businesses and skilled workers relocating to Thailand.

He cautioned that incentives for attracting foreign investment should be carefully balanced to avoid placing undue strain on public finances.

Burin Adulwattana, managing director and chief economist at Kasikorn Research Center, compared the initiative to the creation of a special economic zone for finance.

He indicated that while initial restrictions on competition may limit immediate gains, full liberalisation and open competition are essential for increasing financial flows, boosting tax revenue, retaining talent, and creating jobs.

The Financial Business Centre Act represents a strategic effort by the Thai government to position the country as a key financial centre in the region by addressing structural and regulatory challenges.