Government says easing rules for eight foreign business sectors is not deregulation
The government says eight foreign business categories remain under legal oversight, rejecting claims of unrestricted market access.
Rachada Dhnadirek, spokesperson for the Prime Minister’s Office, on Wednesday clarified reports claiming that the government is allowing foreigners to operate businesses without seeking permission, saying the claim was a misunderstanding of the substance of draft subordinate legislation under the Foreign Business Act 1999.
Rachada said the draft law was not intended to open the door for foreigners to run businesses without supervision. Instead, it updates certain business categories, most of which involve advanced technology or sectors already governed by specific laws and strictly supervised by state agencies.
The aim, she said, is to reduce duplication in approval procedures, make business operations more convenient and bring regulations in line with the modern economic context.
“The government confirms that all economic measures must go hand in hand with protecting the country’s interests, Thai entrepreneurs and economic security. This regulatory update is about improving supervisory efficiency, not liberalising without control as misunderstood,” Rachada said.
Businesses granted exemptions must still strictly comply with specific laws, including:
• Telecommunications businesses, which remain under the supervision of the National Broadcasting and Telecommunications Commission (NBTC).
• Treasury centre businesses, which remain subject to the Bank of Thailand’s rules.
• Securities and derivatives businesses, which remain under the supervision of the Securities and Exchange Commission (SEC).
• Petroleum drilling businesses, which remain strictly governed by energy laws and supervised by energy agencies.
Rachada said the move was intended to reduce duplicate procedures, improve investment flexibility and enhance the country’s competitiveness. It does not mean the government is abolishing supervision or allowing foreigners to operate businesses freely and without conditions.
She added that the government remains committed to protecting Thai entrepreneurs. In the case of the “software development business”, the Commerce Ministry has already removed it from the draft ministerial regulation after concerns were raised by relevant agencies over possible impacts on Thailand’s digital industry. The decision was made to strike a balance between promoting investment and safeguarding the competitiveness of domestic operators.
The Cabinet has approved in principle the draft ministerial regulation specifying additional businesses for which foreigners are not required to seek permission under the Foreign Business Act 1999. The eight business categories are:
- Telecommunications service businesses.
- Treasury centre businesses.
- Administrative, human resources and information technology management services.
- Domestic debt-guarantee services.
- Services involving the leasing of partial space for the installation of electronic machines used for financial services, as well as vending machines for goods or services, to serve and facilitate company employees.
- Petroleum drilling services.
- Other businesses under the law on securities and the stock exchange.
- Services as agents, traders, advisers or fund managers for derivatives contracts in which the underlying goods or variables are not governed by the Derivatives Act 2003.
