Paopoom proposes linking Thailand, Luxembourg’s financial hubs
Thailand and Luxembourg plan to link their financial hubs to boost investment, innovation, and sustainability through enhanced bilateral cooperation.
Deputy Finance Minister Paopoom Rojanasakul said on Sunday that he had discussed linking Thailand’s and Luxembourg’s financial hubs with Luxembourg’s Finance Minister, Gilles Roth.
The meeting took place on the sidelines of the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC, last week.
Plans for Financial Infrastructure Cooperation
Paopoom said he also discussed strengthening cooperation on financial infrastructure between the two countries.
Both sides expressed an intention to pursue bilateral collaboration through various mechanisms, such as memorandums of understanding, policy and regulation exchanges, and technical support. This cooperation aims to help Thailand further develop its financial hub.
Luxembourg’s Role as a Model Financial Hub
Highlighting Luxembourg’s position as a leading financial centre in Europe and globally, Paopoom described it as a gateway to the European Union’s financial markets.
He explained to Roth that Thailand’s goal is to become a financial gateway to ASEAN nations, focusing on the international financial market, wealth management, and financial innovation.
Thailand’s Commitment to Openness and Standards
Paopoom assured Roth that Thailand’s financial hub would be open to operators from other countries.
He added that Thailand would enhance its financial supervision standards to meet international benchmarks.
The regulatory framework would also become more flexible to support the development of financial innovations, alongside efforts to develop the financial industry ecosystem, human resources, and infrastructure.
Financial Hub Bill to Boost Foreign Investment
Paopoom informed Roth that the Thai Cabinet had approved the Financial Hub Bill in principle.
Once enacted, the bill would allow foreign firms to apply for licences to operate up to eight types of financial businesses within Thailand’s financial hub:
- Commercial banking
- Payment services
- Securities
- Forward exchange contracts
- Digital assets
- Insurance
- Insurance brokerage
The bill would also establish the Office of Supervisory and Promotion of Financial Hub Business to offer a one-stop service for financial firms.
Progress on the Financial Hub Bill
Paopoom said the bill is currently being scrutinised by the Office of the Council of State and would soon be tabled before the House of Representatives.
Expanding Financial Linkages
Additionally, Paopoom revealed that Thailand and Luxembourg discussed plans to list Thailand’s sustainability-linked bonds on the Luxembourg Stock Exchange soon, further strengthening financial ties between the two nations.
