Thailand to Liberalize Foreign Investment through Amendments to Business Law
Commerce Ministry proposes removal of restrictive service businesses from Foreign Business Act to enhance competitiveness.
The Thai Commerce Ministry is set to liberalize foreign investment by amending the Foreign Business Act, originally enacted in 1999.
This significant regulatory change involves the removal of 10 service businesses from List 3, which currently imposes restrictions on foreign ownership.
Auramon Supthaweethum, the director-general of the Department of Business Development, stated that the move aims to simplify business registration and boost investment in Thailand.
The Cabinet officially approved the urgent amendment to the Foreign Business Act on April 22, with the intention of eliminating barriers to business operations and enhancing the country’s competitiveness in the global market.
The review of service businesses included in List 3 was conducted to align with evolving economic conditions, according to Ms. Auramon.
The amendment will specifically address shareholding limits and the nature of allowable business activities, with input from relevant stakeholders within the private sector.
Ms. Auramon indicated that the assessment will focus on several key areas: activities governed by specific laws and oversight agencies, services that align with government initiatives, offerings exclusively for affiliated groups, and services tied to specific concessions.
The proposed changes encompass a diverse range of sectors.
Among the 10 service businesses set to be removed are telecom services for operators without dedicated telecom networks, treasury centre services governed by the Exchange Control Act, and lending services with collateral regulated by both the Securities and Exchange Law and the Derivatives Act.
Other sectors affected include futures trading-related activities, agricultural commodities trading, software development supporting the government's S-curve industries initiative, and various administrative services such as human resources and IT management for affiliates.
Additionally, the scope of the amendment extends to credit guarantee services within affiliated companies, leasing arrangements for financial services equipment and employee vending machines, as well as petroleum drilling services.
According to Ms. Auramon, many startups in the country rely on both local and foreign investment for funding.
This shift is anticipated to lead to an increase in foreign ownership as investment opportunities expand in Thailand.
This significant regulatory change involves the removal of 10 service businesses from List 3, which currently imposes restrictions on foreign ownership.
Auramon Supthaweethum, the director-general of the Department of Business Development, stated that the move aims to simplify business registration and boost investment in Thailand.
The Cabinet officially approved the urgent amendment to the Foreign Business Act on April 22, with the intention of eliminating barriers to business operations and enhancing the country’s competitiveness in the global market.
The review of service businesses included in List 3 was conducted to align with evolving economic conditions, according to Ms. Auramon.
The amendment will specifically address shareholding limits and the nature of allowable business activities, with input from relevant stakeholders within the private sector.
Ms. Auramon indicated that the assessment will focus on several key areas: activities governed by specific laws and oversight agencies, services that align with government initiatives, offerings exclusively for affiliated groups, and services tied to specific concessions.
The proposed changes encompass a diverse range of sectors.
Among the 10 service businesses set to be removed are telecom services for operators without dedicated telecom networks, treasury centre services governed by the Exchange Control Act, and lending services with collateral regulated by both the Securities and Exchange Law and the Derivatives Act.
Other sectors affected include futures trading-related activities, agricultural commodities trading, software development supporting the government's S-curve industries initiative, and various administrative services such as human resources and IT management for affiliates.
Additionally, the scope of the amendment extends to credit guarantee services within affiliated companies, leasing arrangements for financial services equipment and employee vending machines, as well as petroleum drilling services.
According to Ms. Auramon, many startups in the country rely on both local and foreign investment for funding.
This shift is anticipated to lead to an increase in foreign ownership as investment opportunities expand in Thailand.
