Thailand Approves AFAS 9 Financial Services Agreement with ASEAN

Thailand's cabinet has approved ratification of the ninth protocol amending financial services commitments under the ASEAN Framework Agreement on Services (AFAS), with the measure to be forwarded to parliament for constitutional approval before binding Thailand. The protocol is designed to deepen economic integration across ASEAN by reducing or eliminating trade barriers in services, particularly banking and financial services. Thailand's updated schedule focuses on banking services, including payment and fund transfer services for cross-border money transfer businesses, capping foreign shareholding at 49 percent—well below Thailand's current 75 percent ceiling. This means Thailand need not liberalize further than its existing domestic laws permit, and no legislative changes are required. Deputy government spokesperson Lalida Periwiwattana stated that participation does not require Thailand to lower financial sector regulation, but instead leverages the ASEAN framework to help Thai financial service businesses expand trade and investment across ASEAN member states under clear, harmonized rules. Thailand signed the protocol on December 20, 2022, and all ten ASEAN members had signed by April 9, 2026. Once parliament approves, the Ministry of Foreign Affairs will deposit the instrument of ratification with the ASEAN Secretariat to bind Thailand. The agreement also aligns with OECD guidelines on reducing restrictions to cross-border financial services and supporting market access for foreign providers, further supporting Thailand's progress toward OECD membership. The step increases Thai financial services access to ASEAN markets while preserving domestic regulatory standards and remaining within Thailand's current liberalization level.