Thailand is planning to change its rules to allow more foreign businesses to operate in the country with fewer restrictions. The Commerce Ministry said it will ask the Cabinet to remove 10 business categories from the restricted list under the Foreign Business Act, which would let foreign companies operate in those areas without needing a state license. At a seminar in Bangkok, Commerce Minister Suphajee Suthumpun explained that the change aims to attract more overseas investment and support economic growth, which has been sluggish.
The sectors under consideration to be opened include telecommunications, software development, financial management, petroleum exploration and trading in agricultural derivatives. These areas currently require special approval or are restricted to Thai-owned firms under existing law.
Officials also said they want to reduce the time it takes to approve permits for foreign businesses from about 60 days to one month. This change is intended to lessen administrative delays and improve Thailand’s competitiveness compared to other countries in the region.
The proposed reforms are part of broader efforts to revive economic momentum and boost foreign direct investment. Thailand’s economy has faced challenges such as a strong currency, external tariff pressures and political uncertainty ahead of national elections.
Lawmakers and business groups have long criticized restrictions on foreign ownership as a barrier to investment. Current foreign business rules date back to the Foreign Business Act of 1999, which limits foreign participation in many sectors for reasons including national security and protection of local industries.
(Source: Bloomberg)
