Government Clarifies Approval of Foreign Business Regulations Draft, Insists It Is Not Liberalization but Subject to Specific Laws
The government clarified that proposed foreign business regulations refine specific high-tech sectors under strict supervision, not blanket deregulation, while maintaining oversight through sector regulators like the Bank of Thailand and Se
On May 13, 2025, Ratchada Thanadirek, government spokesperson, addressed misconceptions about reports claiming the government would allow foreigners to conduct business without permits. She emphasized that the draft regulations under the Foreign Business Operations Act B.E. 2485 do not represent a blanket opening of business to foreigners without oversight, but rather a refinement of certain business sectors—primarily high-technology businesses or those with specific regulatory frameworks—while maintaining strict state supervision. The amendment aims to streamline redundant authorization processes, facilitate business operations, and update regulations to align with modern economic contexts, while ensuring all exempt businesses strictly comply with their respective sector laws. Examples of continuing strict oversight include telecommunications under the National Broadcasting and Telecommunications Commission, financial management centers under Bank of Thailand guidelines, securities and futures trading under the Securities and Exchange Commission, and petroleum drilling under energy sector regulations. Ratchada noted that the government prioritizes protecting Thai entrepreneurs, evidenced by the removal of software development from the draft regulation following concerns from relevant agencies about impacts on Thailand's digital industry. The regulatory improvements aim to achieve five strategic objectives: reducing unnecessary authorization steps, increasing fair and transparent competition, attracting advanced technology and expertise to Thailand, supporting Thailand's development as a regional service and business hub, and creating overall economic, investment, and employment benefits. The government reaffirms that all economic measures must protect national interests, Thai entrepreneurs, and economic security through improved regulatory efficiency, not deregulation as misunderstood.
