New Factory Act aims to help new entrepreneurs and SMEs
Prakob Wiwitthajinda, director-general of the Industry Ministry’s Department of Industrial Works, said on Monday (Nov. 4) that his department is ready to serve and guide business entrepreneurs in compliance with the newly amended Factory Act, which came into effect on October 27.
“The new Factory Act aims to facilitate business operators applying for new licenses by considerably reducing waiting time” he said. “Moreover, it eliminates the need for selected industries to extend to expired licenses thus ensuring entrepreneurs enjoy seamless operation and no interruptions to production.”
The new law also enables factory owners who wish to upgrade their machinery and equipment to increase efficiency and productivity to do so without applying for a permit first. “Furthermore, we have changed the definition of “factory” from an operation with machinery of 5 horse power upward and at least 7 workers to 50 horse power and 50 workers,” said Prakorb. “This means at least 60,000 small factories no longer have to stay in compliance with overlapping laws and have only to deal with DIW instead of several agencies as in the past.
The new Factory Act also allows the factory inspection to be carried out by private third-party investigators instead of only government inspectors as in the past. “This will help speed up the investigation process as well as enhance its transparency,” he said.