Auramon Supthaweethum, the Director-General of the Department of Business Development | Photo via ThaiPost

 

In a strategic effort to bolster investment, Thailand's Commerce Ministry plans to streamline business registration by removing 10 service businesses from List 3 of the Foreign Business Act. Announced by Auramon Supthaweethum, Director-General of the Department of Business Development (DBD), this initiative aims to adapt to current economic conditions by easing restrictions that typically require foreign majority-owned businesses to obtain a specific permit under List 3 sectors.

 

List 3 encompasses areas like services, retail, wholesale, and some construction projects where Thai enterprises are deemed not yet fully competitive. Traditionally, foreign businesses in these sectors have needed a Foreign Business License (FBL) to operate. The Cabinet approved an urgent amendment to the Foreign Business Act of 1999 on April 22, marking a pivotal step towards removing business barriers and boosting Thailand’s competitiveness on the global stage.

 

This planned review will emphasise four core areas: services regulated by specific laws, those aligned with government initiatives, services exclusive to affiliated groups, and concession-specific services. Auramon stressed that the proposal, awaiting Cabinet approval, is designed to create a more inviting investment environment and facilitate foreign business operations in Thailand.

 

The initiative includes diverse sectors such as telecom services for operators lacking their own networks; treasury centre services under the Exchange Control Act; lending services regulated by the Securities and Exchange and Derivatives Acts; futures trading consultancy governed by the Derivatives Act; and trading in the agricultural commodities futures market.

 

Additionally, it covers software development linked to Thailand’s new S-curve industries, administrative services for affiliated groups, credit guarantee services within affiliates, space leasing for financial services equipment, and petroleum drilling services.

 

This move is likely to be seen as advantageous for startups reliant on both domestic and international investors. While potentially increasing foreign investment influx, it also raises concerns about diminishing Thai ownership, posing challenges to local businesses within the rapidly transforming economic landscape. Nonetheless, the proposed changes signal a significant shift towards accommodating international participation while innovatively boosting Thailand's market competitiveness.

 

  Adapted by ASEAN Now from The Thaiger 2025-05-05

 

 

Sounds like a positive step for making business in Thailand easier for foreigners. Let’s see how it plays out in practice!