Thailand’s Cabinet has approved in principle two pieces of draft subordinate legislation under the Foreign Business Act 1999, exempting eight service business categories from the requirement to obtain a foreign business licence, the government announced on May 12.
Deputy Government Spokesperson for the Prime Minister’s Office, Patdarasm Thongsaluaykorn, announced the Cabinet meeting. The two instruments, a draft royal decree and a draft ministerial regulation, are designed to reduce duplication in regulatory procedures and bring oversight in line with the current economic environment.
The draft royal decree amends Schedule Three of the Foreign Business Act 1999 to carve out one specific activity: agricultural futures trading conducted through designated futures trading centres where physical delivery of goods takes place. That activity will no longer require a foreign business licence in Thailand.
The draft ministerial regulation lists eight service categories that foreign operators may carry out without a licence:
- Telecommunications service businesses
- Treasury centre businesses
- Administrative, human resources, and IT management services
- Domestic debt-guarantee services
- Leasing of a partial space for electronic financial service machines and vending machines for company employees
- Petroleum drilling services
- Other businesses under securities and stock exchange law
- Agents, traders, advisers, or fund managers for derivatives contracts not governed by the Derivatives Act 2003
Exemptions do not mean deregulation
Government Spokesperson Rachada Dhnadirek said the changes had been misrepresented in some reporting. The exempted categories either involve advanced technology or are already governed by dedicated legislation and closely supervised by state agencies.
The changes are intended to remove duplicate approval steps, not to allow unsupervised foreign operation. She said the purpose is to improve investment flexibility and bring regulations in line with the modern economic context.
Each exempted category remains subject to its existing sectoral regulator. Telecommunications businesses fall under the National Broadcasting and Telecommunications Commission (NBTC). Treasury centre businesses remain subject to Bank of Thailand oversight. Securities and derivatives businesses are supervised by the Securities and Exchange Commission (SEC), and petroleum drilling continues to be governed by energy law.
Rachada also confirmed that software development had been dropped from the draft ministerial regulation following concerns from relevant agencies about potential impacts on Thailand’s digital industry. The Commerce Ministry removed the category to balance investment promotion with protection for domestic operators.
The story Thailand eases foreign business red tape in eight sectors to cut regulatory overlap as seen on Thaiger News.
