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Liquor Import: Draft Ministerial Regulation to Modernize Liquor Import Framework and Support Tourism Sector

On 3 February 2026, the Thai Cabinet approved in principle the draft Ministerial Regulation on Permission to Import Liquor into the Kingdom (amending the Ministerial Regulation B.E. 2560 [2017], as amended by Ministerial Regulation No. 2 B.E. 2562 [2019]), as proposed by the Ministry of Finance through the Excise Department.

The primary purpose of this amendment is to update and rationalize the regulatory regime governing liquor imports. The existing framework has imposed certain procedural and substantive limitations that hinder legitimate business activities and complicate excise tax administration under the licensing system. The revision seeks to streamline procedures, remove unnecessary legal obstacles, facilitate importers, strengthen tax oversight through digital tools, and align the regime with national policies to promote tourism by enhancing product diversity, stimulating tourist spending, and creating greater economic value in the sector, consistent with the Cabinet resolution dated 28 November 2023.

The draft regulation introduces four substantive amendments:

1.  Clarification and Strengthening of Type 5 Import License Provisions
The amendment grants the Director-General of the Excise Department explicit authority to define detailed criteria, procedures, and permitted purposes for Type 5 licenses (covering imports not falling under Types 1–4). This resolves previous ambiguity that allowed broad interpretation and potential misuse.
Initial categories to be specified include importation for re-export, use as raw material or component in non-liquor industries, importation as non-commercial samples or for personal consumption (limited to 200 litres per occasion), and importation of rectified spirit for industrial production of plant-based ethylene.

2.  Abolition of the Sole Agent Requirement for Type 1 Import Licenses
The previous condition requiring Type 1 license applicants (import for sale, excluding duty-free retail under customs law) to be the exclusive agent of the imported brand is removed. This change enables multiple importers to handle the same brand, thereby fostering greater competition.
The relaxation will initially apply only to wine and sparkling wine. The Director-General retains discretion to reimpose the sole agent condition for other liquor categories if warranted. The Excise Department’s Imported Liquor Price Database system now provides reliable price benchmarking, valuation, and smuggling detection capabilities, rendering the sole agent mechanism less essential for tax control.

3.  Introduction of Electronic Submission Channels
Applications for import licenses may now be filed either in person at the appropriate Excise Area Office or Branch Office (corresponding to the Customs clearance location) or electronically via designated digital platforms. This dual mechanism significantly improves administrative efficiency and accessibility for importers.

4.  Simplification of Label Submission Requirements (Type 1 Licenses)
The mandatory prior approval of container labels before applying for a Type 1 license has been eliminated. Importers are now required only to submit sample labels that fully comply with the criteria and content specifications announced by the Director-General of the Excise Department. This reduction in procedural burden is supported by the department’s established electronic label verification infrastructure.

The Ministry of Finance has confirmed that the amendments do not alter excise tax rates or taxable bases; accordingly, no reduction in state revenue is anticipated. The revised system is expected to enhance tax collection effectiveness and further curb illicit importation.

The proposal was subject to public hearing and received concurrence in principle from relevant ministries and agencies, including Tourism and Sports, Commerce, Public Health, Industry, and the Office of the National Economic and Social Development Council. The Council of State has advised that the Cabinet possesses the authority to approve the draft in principle, as the matter constitutes routine regulatory adjustment and does not impose binding obligations on future administrations pursuant to Section 169 (1) of the Constitution.

Key Takeaways:

•  The regulation modernizes Thailand’s liquor import licensing regime by removing outdated restrictions and integrating digital processes.

•  Elimination of the sole agent requirement (initially for wine and sparkling wine) promotes fairer market competition and greater product availability.

•  Enhanced administrative efficiency through electronic applications and simplified label procedures reduces burdens on legitimate importers.

•  Fiscal neutrality is preserved; no tax rate reductions are involved, while improved oversight is expected to strengthen revenue collection and reduce smuggling.

•  The measure directly supports national tourism objectives by facilitating greater variety and accessibility of imported alcoholic beverages, thereby encouraging tourist expenditure and sector growth.

•  Upon publication in the Royal Gazette, the amended regulation will enter into force, marking a structured step toward a more competitive, transparent, and tourism-aligned import framework.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI: Accelerates Implementation of Thailand FastPass to Unlock Over 480 Billion Baht in Strategic Investments

The Board of Investment of Thailand (BOI) continues to advance the Thailand FastPass mechanism as a central tool for expediting large-scale private investments. As outlined in the detailed overview titled “Thailand FastPass: Implementation Details for Expediting Strategic Investments” BOI’s FastPass: Implementation Details for Expediting Strategic Investments – The Legal Co., Ltd., the mechanism was established to address regulatory and operational delays affecting high-priority projects, initially targeting approximately 70 initiatives valued at around 300 billion baht.

Recent developments indicate that the scope has expanded significantly. The BOI is now focusing on unlocking investments exceeding 480 billion baht across roughly 80 stalled or pending projects. These initiatives span critical sectors including data centers, renewable and clean energy facilities, electric vehicle production and component manufacturing, advanced electronics, printed circuit boards, and industrial estate expansions. Delays have primarily stemmed from challenges in electricity grid capacity allocation, land acquisition and zoning approvals, environmental impact assessment processes, visa issuance, and work permit procedures.

The FastPass framework retains its core structure while scaling to meet the increased volume:

•  Projects are selected according to minimum investment thresholds, alignment with national strategic industries, and capacity to generate substantial economic benefits such as employment, domestic supply-chain integration, and technology transfer.

•  Participants are required to commit to accelerated disbursement schedules—typically at least 20 percent of the total investment value within a short, defined period (e.g., six months or within the current fiscal year)—to demonstrate immediate economic contribution and justify expedited processing.

•  Inter-agency coordination, supported by dedicated subcommittees and formalized service-level agreements, continues to target a 20–50 percent reduction in approval and licensing timelines for electricity provisioning, land development, immigration services, labor permits, and environmental clearances.

This intensified application of FastPass aligns with the government’s broader Big Win economic strategy, which prioritizes structural transformation in three key domains:

1.  Smart Agriculture: Deployment of technology to lower production costs and position Thai agricultural products at premium global market levels.

2.  Modern Industries: Sustained investment momentum in electric vehicle ecosystems and intelligent electronics manufacturing.

3.  Premium Services: Elevation of tourism and hospitality toward high-value segments, including wellness tourism and advanced experiential offerings.

The BOI is ensuring continuity of these efforts across potential changes in administration. Preparations are also underway for complementary measures, including an enhanced version of the Half-Half Plus program that incorporates mandatory reskilling and upskilling components for participants, with the aim of significantly increasing incomes for small retailers while maintaining focus on equitable distribution to micro and small enterprises in provincial areas.

By channeling substantial private capital without additional public expenditure, the Thailand FastPass mechanism supports immediate economic activation, job creation, industrial upgrading, and Thailand’s long-term positioning within global high-technology value chains.

Key Takeaways:

•  Thailand FastPass now targets the realization of over 480 billion baht across approximately 80 strategic projects in sectors such as data centers, clean energy, and electric vehicles.

•  Qualifying projects must commit to rapid investment disbursement (e.g., minimum 20 percent within a short timeframe) to access expedited approvals.

•  Inter-agency collaboration aims to reduce processing times by 20–50 percent for electricity, land, visa, permit, and environmental requirements.

•  The mechanism supports the Big Win priorities of smart agriculture, modern industries, and premium services while maintaining policy continuity.

•  The approach delivers prompt private-sector stimulus and contributes to sustainable, long-term economic competitiveness.

Related Article: BOI’s FastPass: Implementation Details for Expediting Strategic Investments – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOT: Strengthening Financial Oversight to Address Baht Pressures and Enhance Stability

The Thai baht continues to face pressures stemming from global monetary policy divergences, volatile capital movements, and heightened risks associated with financial crime. Despite robust macroeconomic fundamentals and record-high foreign exchange reserves, the Bank of Thailand (BoT) has implemented a multifaceted strategy that extends beyond traditional monetary policy tools. This approach addresses vulnerabilities in financial transparency, misuse of cash, flows through alternative assets such as gold, and cross-border digital fraud.

Key initiatives include intensified monitoring of large cash withdrawals to disrupt grey funds, enhanced regulatory scrutiny of gold transactions, deepened collaboration with international organizations such as the International Monetary Fund (IMF) and the World Bank to combat digital fraud, and targeted foreign exchange interventions to ensure orderly market conditions.

1. Enhanced Monitoring of Large Cash Withdrawals and Grey Funds

The BoT is advancing stricter oversight of substantial cash withdrawals via commercial banks. Institutions will be required to identify and report transactions exceeding a designated threshold—anticipated to range between THB 3 million and THB 5 million—and to document the customer’s declared purpose. This measure targets the use of cash in illicit or opaque activities, including mule accounts, which are increasingly difficult to reconcile with modern payment preferences favoring electronic transfers. These efforts complement strengthened customer due diligence (CDD) and know-your-customer (KYC) protocols, while aligning with parallel controls on gold as an alternative channel for fund movements outside conventional banking systems.

2. International Collaboration to Counter Digital Fraud

In recognition of the cross-border and technology-driven nature of financial crime, the BoT has intensified partnerships with the IMF and World Bank. These collaborations focus on developing supervisory frameworks, sharing intelligence, and aligning domestic regulations with global standards to mitigate online scams, mule networks, and technology-enabled money laundering. The strategy emphasizes three core elements: reducing digital fraud incidence, bolstering cybersecurity resilience, and enhancing the readiness of Thailand’s digital financial ecosystem to safeguard societal financial well-being.

3. Baht Stabilization and Record Foreign Exchange Reserves

The BoT maintains a managed float regime, intervening only to moderate excessive volatility and preserve orderly conditions without pursuing a specific exchange-rate target. Recent baht appreciation—reaching near five-year highs and breaching 31 baht per US dollar—has been partly attributed to gold-related inflows rather than underlying economic fundamentals. To mitigate such pressures, the BoT is reinforcing oversight of gold transactions to curb short-term baht volatility from synchronized large-scale sales and to limit risks from grey capital flows via gold as a conversion or transfer mechanism.

4. Regulatory Updates on Gold and Foreign Exchange Transactions

On 26 January 2026, the Royal Gazette published Exchange Control Notifications No. 35 and No. 36, issued by the Competent Officer for Rules and Practices Relating to Foreign Exchange. These instruments refine the framework for gold trading and foreign exchange operations to promote transparency and audit-ability among high-value participants.

•  Notification No. 36 (effective from 27 January 2026) introduces stricter requirements for major gold traders—those involved in importing or exporting gold and averaging at least THB 10 billion per year in domestic gold transactions over the preceding five calendar years (or equivalent at market rates). Such entities must:
(i) submit transaction data electronically via BoT-designated systems or methods;
(ii) ensure the accuracy and completeness of reported information, with the Competent Officer retaining authority to request supplementary details as necessary; and
(iii) retain relevant records and supporting documentation for a minimum of three years for inspection purposes.

•  Notification No. 35 modernizes foreign exchange rules to reflect prevailing economic conditions. It relaxes certain obligations for foreign currency acquisitions below USD 10 million (or equivalent), permits individuals to execute direct overseas payments up to USD 5 million per person annually, and mandates licensed entities to verify investor compliance, secure required reports through BoT systems, maintain documentation for at least five years, and prevent misuse for speculation, unlicensed cross-border payments, or regulatory circumvention.

Potential Implications:

These measures will impose greater compliance and reporting obligations on banks, gold traders, digital platforms, corporate entities, and high-net-worth individuals. Cross-border operations may experience increased alignment with international norms, potentially reducing flexibility while enhancing predictability and transparency.

In summary, the BoT’s integrated response underscores the interconnected nature of contemporary financial risks across cash, alternative assets, digital channels, and international flows. By addressing both immediate pressures and underlying vulnerabilities, these policies aim to reinforce systemic resilience and sustain confidence in Thailand’s financial framework.

Key Takeaways:

•  The BoT is prioritizing transparency in gold and cash transactions to mitigate baht volatility and curb illicit flows.

•  Notification No. 36 mandates reporting and record-keeping for major gold traders (THB 10 billion+ average annual domestic volume).

•  Notification No. 35 eases certain foreign exchange thresholds while strengthening compliance safeguards.

•  International partnerships and domestic oversight enhancements target digital fraud and grey funds.

•  Market participants should prepare for heightened scrutiny, robust documentation, and proactive adaptation to ensure regulatory alignment.

Author: Panisa Suwanmatajarn, Managing Partner.

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Updates to Thailand’s Investment Promotion Regime

Overview of Recent Amendments to Investment Promotion Measures in Thailand

Pursuant to the Investment Promotion Act B.E. 2520 (1977), as amended, Thailand has established a comprehensive framework and institutional mechanisms for promoting investment. The primary objectives are to create an investment-friendly environment, foster industrial development, and promote equitable income distribution by granting investment incentives to business activities deemed significant and prioritized.

In furtherance of these objectives, the Board of Investment (BOI) issued Notification of the Board of Investment No. 9/2565 regarding Measures for the Promotion of Industries Critical to National Development (“BOI Notification No. 9/2565“). This notification establishes the categories of business activities eligible for investment promotion, together with the applicable conditions, criteria, and privileges granted to promoted projects, as detailed in the Schedule of Investment-Promoted Activities annexed thereto.

To align with Thailand’s evolving economic development policies and strategic direction, accommodate the rapid expansion of industrial activities, and enhance incentives for investors, the BOI issued two notifications dated 5 June B.E. 2568 (2025), which were published in the Royal Gazette on 22 January B.E. 2569 (2026). These notifications revise and update the investment promotion framework to reflect current economic and industrial conditions by amending certain categories of business activities eligible for investment promotion as prescribed in the Schedule of Investment-Promoted Activities. The key amendments are summarized below:

1. Notification of the Board of Investment No. Sor. 5/2568

Amendment to the List of Activities Eligible for Investment Promotion under BOI Notification No. 9/2565

This notification is issued pursuant to BOI Notification No. 9/2565, which prescribes the categories of business activities and conditions eligible for investment promotion as set forth in the Schedule of Investment-Promoted Activities. Certain categories have been amended to focus on investments that create added value, promote the adoption of modern technologies in the manufacturing sector, enhance the development of supply chains to ensure Thailand’s export-oriented production attains international recognition and delivers maximum benefits, and accommodate the rapid expansion of data center businesses by supporting Thailand’s advancement toward becoming a digital hub of the ASEAN region.

This notification revises the categories of business activities and conditions eligible for investment promotion with respect to 32 categories under the Schedule of Investment-Promoted Activities. The majority of these are activities that generate added value for the national economy, including the machinery and automotive industry, electrical appliances and electronics industry, metals and materials industry, public utilities, digital industry, and creative industry. Additionally, investment promotion for metal cutting activities (Category 5.4.10) has been discontinued and removed from the list of promoted activities. This notification applies to business operators who submit applications for investment promotion on or after 1 July B.E. 2568 (2025).

2. Notification of the Board of Investment No. Sor. 6/2568

Investment Promotion Measures for Tourism-Related Businesses in Secondary Cities

The public sector has provided support for tourism development in secondary cities, which are provinces that are not widely known but possess high tourism potential. To promote tourism, distribute income equitably, and sustainably expand economic opportunities to local communities, investment promotion measures have been introduced for tourism-related businesses located in designated secondary cities.

This notification revises the criteria and conditions for investment promotion applicable to certain categories of tourism-related businesses (including cruise terminals, hotels, international exhibition centers, and similar establishments), totaling 12 items under the Schedule of Investment-Promoted Activities. The location of the establishment serves as a key criterion for granting enhanced and more beneficial investment promotion privileges, such as extended periods of corporate income tax exemption, to create incentives for both domestic and foreign investors to invest in secondary cities and extend investment promotion benefits to tourism businesses located therein. This notification applies to business operators who submit applications for investment promotion on or after 5 June B.E. 2568 (2025).

Key Observations

1. Discontinuation of Metal Cutting Activities (Category 5.4.10)

Business activities previously eligible for investment promotion under Category 5.4.10 (metal cutting activities) are no longer entitled to apply for BOI promotion, as the BOI has formally discontinued investment promotion for this category. Businesses operating in the affected sectors should conduct a careful review of their current operations to determine whether they may qualify under other eligible promoted activities. Where necessary, they should consider restructuring their investment structures or business operations to ensure ongoing compliance with the revised BOI investment promotion framework.

2. Enhanced Incentives for Tourism-Related Businesses in Secondary Cities

Tourism-related businesses located in secondary cities, whether newly established or existing, may have opportunities to receive investment promotion incentives at a higher level than previously available, including longer and more favorable tax incentives, which may serve as a catalyst for increased investment. Conversely, businesses located in primary cities may not be entitled to the same level of preferential treatment as those located in secondary cities, which may result in heightened competitive pressure regarding operational costs.

Status and Legal Effect

These two notifications are issued pursuant to Section 16 of the Investment Promotion Act B.E. 2520 (1977), as amended, and shall be applied in conjunction with the Investment Promotion Act B.E. 2520 (1977) and BOI Notification No. 9/2565. In the event of any inconsistency or conflict between the conditions or criteria, the provisions of these two notifications shall prevail and be applied on a case-by-case basis to the relevant promoted businesses, taking into account the prevailing economic circumstances at the relevant time.

Furthermore, additional or amending notifications concerning investment-promoted activities may be issued in the future to reflect Thailand’s evolving economic conditions. Investors are therefore advised to closely monitor regulatory developments in order to formulate, review, and adjust their investment strategies in a timely and appropriate manner.

Conclusion

These two BOI notifications constitute a significant component of Thailand’s current legal and policy framework governing investment promotion. They clearly reflect the government’s policy orientation toward enhancing national competitiveness, promoting targeted high-value industries, supporting regional economic development, and refining the investment promotion regime to ensure its alignment with rapidly evolving economic and technological landscapes.

Related Article: Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568) – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand BOI Launches New SME Efficiency Enhancement Measures (Notification No. 5/2568)

The Thailand Board of Investment (“BOI”) has issued BOI Notification No. 5/2568 Re: Measures to Enhance the Efficiency of Small and Medium-Sized Enterprises (“SMEs”), introducing a comprehensive incentive framework aimed at strengthening the competitiveness of SMEs. The measures are designed to encourage SMEs to modernize their operations through technological upgrades, enhanced operational efficiency, digital transformation, improved energy efficiency, and diversification into new industries.

This notification took effect on 5 June 2025 and applies to all investment promotion applications submitted on or after that date.

Purpose of the Measure

This measure aims to strengthen the resilience and long-term competitiveness of SMEs by promoting investments that enhance operational efficiency, elevate business practices to internationally recognized sustainability standards, and facilitate the transition into emerging industries. These initiatives are intended to enable SMEs to better align with global production requirements and environmental expectations.

Eligibility Requirements

To be eligible for the incentives under this measure, an applicant must satisfy all of the following conditions:

  • The company must have at least 51% Thai shareholding, and more than half of its authorized directors must be Thai nationals.
  • The company’s total revenue, calculated on a consolidated basis and inclusive of both BOI-promoted and non-promoted activities, must not exceed THB 500 million in aggregate over the preceding three fiscal years.
  • The company must be registered under the SME ONE ID system prior to the submission of the investment promotion application.

Conditions

The BOI permits existing SME projects to apply for incentives under this measure, subject to the following conditions:

  • This measure applies to existing SME projects, irrespective of whether they currently receive BOI investment promotion, provided that the project falls within an activity category eligible for promotion at the time of application. Projects classified under the BOI’s excluded activities or policies shall not be eligible.
  • Projects that have previously been granted BOI promotion may reapply under this measure upon the expiry of their existing corporate income tax (CIT) exemption or reduction period, or in cases where no CIT exemption was granted at the time of the original promotion.

Required Efficiency Improvement or Transition Activities

To be eligible under this measure, applicants must implement one or more of the following efficiency enhancement or business transition activities, subject to approval by the BOI:

  • Upgrading or replacing machinery and automation systems to enhance operational efficiency;
  • Adoption of digital technologies, including system integration software, artificial intelligence (AI), machine learning (ML), big data analytics, and electronic payment systems;
  • Upgrading production processes or operational systems to align with Industry 4.0 standards;
  • Improving energy efficiency or adopting renewable energy solutions within business operations;
  • Obtaining internationally recognized sustainability or quality certifications (e.g., GAP, FSC, PEFC, ISO 22000, ISO 14064); and
  • Transitioning business operations into new industries or activity categories eligible for BOI investment promotion.

1. Submission and Approval of the Investment Plan

  • Applicants are required to submit a comprehensive investment plan detailing the proposed improvement measures or transition activities.
  • Investment plans involving Industry 4.0 upgrades must be reviewed and approved by the National Science and Technology Development Agency (NSTDA).

2. Minimum Investment Requirement

  • The investment in efficiency improvement must be no less than THB 500,000, excluding the cost of land and working capital.

Rights and Benefits

Eligible SME projects are entitled to the following incentives:

  • Import duty exemption on machinery
  • Corporate income tax (CIT) exemption for up to five (5) years, equivalent to 100% of the qualifying investment amount (excluding land and working capital)
  • The CIT exemption period commences once the project generates revenue and must be utilized within three (3) years from the date of the promotion certificate.

Conclusion

BOI Notification No. 5/2568 represents a significant policy initiative to strengthen Thailand’s SME sector. By promoting modernization, digital transformation, energy efficiency, and sustainability, the measure supports SMEs in enhancing productivity and aligning with international standards.

Overall, the scheme is expected to accelerate the long-term competitiveness and resilience of SMEs while contributing to Thailand’s broader industrial transformation.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s New Import Duty Framework for Low-Value Goods: A Policy Shift Toward Competitive Neutrality

On 4 December 2025, the Thai Customs Department issued Customs Notification No. 219/2568 (2025), introducing significant reforms to Thailand’s import duty regime for low-value goods (LVGs). This measure eliminates the long-standing import duty exemption for LVGs as part of a broader policy initiative to address competitive imbalances between imported and domestically supplied goods and to restore tax neutrality in the Thai market. The Notification took effect on 1 January 2026 and remains in force until superseded by subsequent regulation.

Legal Background: Evolution of Import Duty Rules for LVGs

Historically, LVGs were exempt from import duty under Customs Notification No. 191/2561 (2018), which granted duty-free treatment for imported goods with a customs value not exceeding THB 1,500. This exemption was originally designed to reduce administrative burdens associated with customs clearance of small-value shipments.

However, the rapid expansion of cross-border e-commerce has resulted in LVGs being imported into Thailand on a substantial commercial scale, often in direct competition with domestically supplied goods. Over time, the exemption increasingly deviated from its original administrative rationale and raised concerns regarding fair competition and unequal tax treatment.

This measure was expressly temporary and applied only until 31 December 2024, after which the exemption regime reverted to the framework established under Notification No. 191/2561 (2018).

To establish a more sustainable policy framework, the Customs Department subsequently issued Customs Notification No. 219/2568 (2025), which formally repealed Customs Notification No. 191/2561 (2018). Consequently, the previous import duty exemption for LVGs has been fully revoked and is no longer in effect.

Current Import Duty Framework for LVGs

Under Customs Notification No. 219/2568 (2025), the following provisions now apply:

  • Imported goods with a customs value of less than THB 1 remain exempt from import duty.
  • Imported goods with a customs value of THB 1 or more are subject to import duty in accordance with the applicable tariff classification under Thailand’s customs tariff schedule.

Anticipated Benefits

  • Enhanced competitive equity: Domestic businesses, particularly small and medium-sized enterprises (SMEs), benefit from more equitable market conditions, as imported goods are now subject to import duty treatment comparable to locally supplied goods.
  • Improved tax neutrality: The revised framework reduces disparities in tax treatment between imported and domestically supplied goods, promoting a more level playing field.
  • Strengthened customs enforcement: These changes enhance customs oversight of large-scale commercial imports previously classified as low-value shipments, improving revenue collection and trade compliance.

Potential Challenges

  • Increased costs for cross-border sellers and consumers: Goods previously imported duty-free may now incur import duties, resulting in higher overall costs for end consumers and cross-border merchants.
  • Enhanced compliance obligations: Overseas sellers and e-commerce platforms face additional customs formalities and documentation requirements, potentially increasing operational complexity.
  • Administrative burden: The shift may require significant adjustments to existing logistics and compliance infrastructure.
  • Practical and Operational Implications
  • Pricing adjustments: Importers, logistics providers, and e-commerce platforms should revise their pricing structures to reflect increased exposure to import duties and maintain competitive positioning.
  • Process and system updates: Customs declarations, tariff classifications, and internal compliance systems require comprehensive review and updates to ensure alignment with the new regulatory framework.
  • Transitional considerations: Market participants may experience temporary operational adjustments and should implement appropriate change management procedures to facilitate smooth adaptation to the new regime.

Future Policy Considerations

In addition to the revised import duty framework, the Customs Department has indicated interest in simplifying the import duty structure for LVGs through the application of a single, uniform duty rate rather than multiple rates determined by product tariff classification. From a policy perspective, preliminary discussions suggest that collecting import duties on LVGs at an average rate of approximately 10% may be insufficient to achieve meaningful competitive balance. A higher rate—potentially in the range of 30%—has been discussed as more likely to establish parity between domestic and foreign businesses.

However, under the current caretaker government, the Customs Department lacks the authority to issue emergency decrees to amend the customs tariff schedule. Consequently, any modifications to duty rates or tariff structures will require legislative action following the formation of a new government.

Conclusion

The new import duty framework for low-value goods represents Thailand’s strategic policy response to the rapid growth of cross-border e-commerce and reflects a clear commitment to competitive fairness and tax neutrality. While these changes may result in increased costs and compliance obligations for certain overseas sellers and importers, they also strengthen customs enforcement capabilities and create more equitable conditions for domestic businesses.

Businesses engaged in importing goods into Thailand should conduct comprehensive reviews of their pricing strategies, customs classifications, and logistics and compliance processes to ensure ongoing adherence to the new regulatory framework. Early preparation and proactive adaptation will be essential to maintaining operational efficiency and market competitiveness under the revised regime.

Author: Panisa Suwanmatajarn, Managing Partner.

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Advancing the ASEAN Power Grid through LTMS-PIP Phase 2

The regional energy landscape has achieved a significant milestone with the execution of the Energy Wheeling Agreement (EWA) under Phase 2 of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP Phase 2). This agreement involves the Electricity Generating Authority of Thailand (EGAT), Électricité du Laos (EDL), and Tenaga Nasional Berhad (TNB) of Malaysia, representing a sophisticated evolution in multilateral cross-border electricity trade within Southeast Asia.

The EWA represents a substantial advancement from the project’s inaugural phase, doubling the capacity for multilateral cross-border electricity commerce from 100 megawatts (MW) to 200 MW over a two-year period. This enhanced mechanism facilitates the transmission of electricity generated in Laos and Malaysia to Singapore, utilizing the existing grid infrastructure of Thailand and Malaysia as transmission corridors.

Transmission Framework

The Transmission Framework establishes the structural and operational parameters for cross-border power flows under LTMS-PIP Phase 2. It delineates institutional roles, capacity allocations, and operational protocols that enable coordinated electricity transfers across multiple jurisdictions.

Under LTMS-PIP Phase 2, the transmission framework operates through a multidirectional power trade arrangement:

  • Lao PDR Supply Stream: Up to 100 MW of renewable hydropower from Laos, transmitted through Thailand and Malaysia to Singapore
  • Malaysia Supply Stream: Up to 100 MW of electricity from Malaysia directly to Singapore

This integrated framework enables a total seamless transfer capacity of 200 MW, representing a robust commitment to regional energy integration and demonstrating the technical feasibility of multilateral power trade in ASEAN.

Strategic National Contributions

The success of LTMS-PIP transcends technical achievement, serving as a strategic blueprint for the ASEAN Power Grid (APG). Each participating nation fulfills a critical role in this collaborative energy framework:

Thailand (EGAT)

Serving as the primary wheeling partner, EGAT manages the transmission of power across Thai territory. This role positions Thailand’s transmission infrastructure as a cornerstone of the APG, facilitating regional grid integration and strengthening overall energy stability. Thailand’s participation generates revenue through wheeling charges while enhancing national energy security.

Laos (EDL)

As the renewable energy supplier, EDL reinforces its commitment to the APG by providing clean hydropower resources. LTMS-PIP Phase 2 expands Laos’ participation in the regional electricity market, promoting sustainable development objectives and positioning the nation as a key renewable energy exporter within ASEAN.

Malaysia (TNB)

As both a wheeling partner and electricity supplier, TNB plays a dual role in facilitating the framework while actively participating in regional power trade. TNB’s involvement supports Malaysia’s Ministry of Energy Transition and Water Transformation in building a resilient, interconnected ASEAN energy infrastructure, while generating export revenue and strengthening regional energy cooperation.

Conclusion

The successful integration of cross-border electricity trade among Thailand, Laos, and Malaysia under LTMS-PIP Phase 2 establishes a functional model for multilateral energy cooperation within ASEAN. By harmonizing technical standards and optimizing grid utilization through the EWA, the participating nations have progressed from bilateral trade arrangements to a sophisticated regional exchange mechanism.

This partnership not only maximizes existing infrastructure efficiency but also serves as the primary pathfinder project for the broader APG initiative. LTMS-PIP Phase 2 demonstrates that coordinated technical frameworks and sustained political commitment can successfully address the energy needs of multiple nations while advancing toward a sustainable, low-carbon future. The project’s achievements provide valuable insights and operational precedents for future multilateral power integration initiatives across the ASEAN region.

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI Unveils Draft National Semiconductor Roadmap Aiming to Attract Over 2.5 Trillion Baht in Investments

The Board of Investment (BOI) has presented the draft National Strategy for the Development of the Semiconductor and Advanced Electronics Industry to the National Semiconductor and Advanced Electronics Policy Committee. This comprehensive roadmap, prepared since April 2025 with the assistance of a leading global consulting firm, outlines a long-term vision to position Thailand as a leading hub for semiconductor production in the region.

The strategy builds upon Thailand’s existing strengths in downstream activities, such as outsourced semiconductor assembly and testing (OSAT) and integrated circuit design, while advancing capabilities across the full value chain—from upstream wafer fabrication to high-value design and production. The ultimate objective is to achieve “Made-in-Thailand Chips” by 2050, fostering a complete and integrated semiconductor ecosystem.

Strategic Focus and Targets:

The roadmap targets investments exceeding 2.5 trillion baht over the 25-year period from 2026 to 2050. It also aims to develop more than 230,000 highly skilled personnel to support industry growth.

Emphasis is placed on five product categories where Thailand demonstrates strong potential and alignment with domestic industries:

•  Power chips

•  Sensor chips

•  Photonics chips

•  Analog chips

•  Discrete chips

These segments are closely linked to key sectors including automotive, electronics, telecommunications, data centers, artificial intelligence, automation, and medical applications.

Phased Development Approach:

In the initial five-year phase (2026–2030), efforts will concentrate on leveraging current advantages in OSAT, IC design, and advanced electronics, while initiating investments in wafer fabrication and nurturing domestic enterprises to emerge as leading players. Subsequent phases will progressively expand the value chain toward full self-reliance in high-value production.

Five Key Driving Mechanisms:

To realize these ambitions, the strategy proposes action across five critical areas:

1.  Investment Incentives — Provision of financial support, including grants and long-term low-interest loans, to attract priority projects.

2.  Human Capital Development — Establishment of specialized curricula, industry-academia collaborations (both domestic and international), and vocational training programs to build expertise in semiconductor engineering and advanced research.

3.  Technology Advancement — Upgrading national research centers and fostering partnerships among government, private sector, and academic institutions for research and development.

4.  Infrastructure Enhancement — Development of dedicated clusters, reliable utilities (including clean energy), water systems, and robust disaster management capabilities.

5.  Business Environment Improvement — Streamlining approvals and permits, negotiating international trade agreements, and implementing government procurement mechanisms to support local enterprises.

Competitive Positioning and Supporting Context:

Although, Thailand’s semiconductor industry remains in its early stages compared to regional leaders such as Singapore and Malaysia, or competitors including Vietnam and the Philippines, the country possesses competitive advantages in infrastructure, workforce quality, business environment, and downstream industries.

From 2018 to November 2025, the electrical and electronics sector attracted 1,748 investment promotion applications totaling 1.17 trillion baht, representing 19% of all promoted investments and underscoring its status as the leading sector. The global semiconductor market is projected to reach 1 trillion U.S. dollars by 2030, presenting significant opportunities for strategic growth.

Key Takeaways:

•  Thailand’s national semiconductor roadmap targets over 2.5 trillion baht in investments and the development of more than 230,000 skilled professionals by 2050.

•  Focus is directed toward five high-potential chip categories that align with the country’s established industrial strengths.

•  A five-pillar approach addresses incentives, talent, technology, infrastructure, and business facilitation to build a complete ecosystem.

•  The strategy emphasizes transitioning from assembly-focused activities to high-value design and fabrication, aiming for “Made-in-Thailand Chips” and regional leadership in the sector.

•  This initiative positions the semiconductor industry as a key driver of long-term economic competitiveness amid rapid global technological and supply chain evolution.

Author: Panisa Suwanmatajarn, Managing Partner.

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Online Platform: ETDA’s Push for New Rules on Social Commerce to Safeguard Thai Consumers

In a move to tighten oversight on digital marketplaces, Thailand’s Electronic Transactions Development Agency (ETDA) is gearing up to introduce new regulations targeting social commerce platforms. This initiative aims to close loopholes in consumer protection, ensuring that online transactions meet stringent standards amid the growing popularity of buying and selling via social media. The announcement comes as platforms like Facebook argue they fall outside traditional e-commerce definitions, prompting ETDA to expand its regulatory net.

The backdrop for these changes is rooted in Thailand’s evolving digital economy. With e-commerce booming, the existing Electronic Transactions Committee’s announcement—set to take effect on December 31, 2025—already mandates that e-commerce platforms sell or advertise products adhering to standards from the Thai Industrial Standards Institute (TISI) and the Food and Drug Administration (FDA). However, social media giants such as Facebook have claimed exemption, citing the absence of integrated payment systems and separate user accounts for transactions. ETDA has countered this, stating, “Facebook has informed ETDA that they do not fall under the category. We are therefore preparing a new announcement to cover Facebook, as it cannot be denied that Facebook is widely used as a platform for buying and selling goods known as social commerce, which requires strict product standards.”

This conciliatory approach by ETDA also considers international trade dynamics, particularly U.S. policies under President Donald Trump, which threaten trade retaliation against countries restricting American platforms. By avoiding overly restrictive measures, Thailand seeks to balance consumer safety with open trade, preventing potential barriers for U.S.-based companies operating in the region.

Beyond social commerce, the new rules will extend to space-sharing platforms like Airbnb. ETDA plans to enforce standards for user safety, identity verification, and tenant rights, addressing common issues such as leaks or power outages. Additionally, concerns over monopolistic practices in delivery services—previously requiring platforms to offer at least three shipping options—have been shifted to the Trade Competition Commission (TCC) for handling and streamlining regulatory responsibilities.

These developments underscore Thailand’s commitment to fostering a secure digital ecosystem. As social commerce continues to thrive, with platforms blending social interaction and shopping, the need for robust oversight has become evident. ETDA’s efforts aim not only to protect consumers from substandard or unsafe products but also to promote fair competition and innovation in the online space.

Key Takeaways:

Future Implications: This could set a precedent for more comprehensive digital platform governance in Thailand, boosting trust in online transactions.

Expanded Regulation: ETDA’s new announcement will include social commerce platforms like Facebook, requiring them to enforce product standards from TISI and the FDA to plug consumer protection gaps.

Consumer Focus: The rules prioritize Thai buyers’ safety by mandating quality controls on goods sold online, effective from late 2025 onward.

International Considerations: A balanced approach avoids trade conflicts with the U.S., aligning with global digital trade norms.

Broader Scope: Space-sharing services like Airbnb will face new safety and rights standards, while delivery monopolies fall under TCC jurisdiction.

Author: Panisa Suwanmatajarn, Managing Partner.

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Updated Regulation on Official Secrets: Modernization, Electronic Security Measures, and Comparison with International Standards

On 30 December 2025, the Thai Cabinet approved in principle the draft Regulation on the Protection of Official Secrets (No. ..) B.E. …., as proposed by the Office of the Permanent Secretary to the Prime Minister. This revision updates the framework established in B.E. 2544 (2001), primarily to address the increasing reliance on electronic systems in government operations and resolve limitations in handling classified information digitally.

Background and Rationale:

The original regulation, enacted pursuant to Section 16 of the Official Information Act, B.E. 2540 (1997), mandated measures to prevent leakage of official secrets. It detailed procedures for classification, copying, translation, transfer, transmission, disclosure, destruction, storage, backup, and security, but focused predominantly on paper-based documents.

With the widespread adoption of electronic systems, agencies faced operational delays when handling classified information, often reverting to paper methods for compliance. This practice conflicted with the Prime Minister’s Office Regulation on Administrative Correspondence (No. 4), B.E. 2564 (2021), which promotes electronic administration.

The need for reform was identified as early as the Official Information Board No. 2/2554 meeting in March 2011, leading to the formation of a sub-committee. The revised draft, endorsed by the Board in its no. 2/2568 meeting on 28 October 2025, was subsequently submitted to the Cabinet.

Key Amendments: Electronic Classified Information

The primary enhancement is the introduction of Chapter 5: Electronic Classified Information, comprising 26 new provisions (Sections 50/1 to 50/26). These establish comprehensive guidelines for digital management of classified data, covering:

•  Classification and marking of electronic documents.

•  Procedures for creation, copying, translation, transfer, transmission, receipt, and disclosure via digital channels.

•  Secure storage, backup, and recovery to mitigate loss or unauthorised destruction.

•  Cybersecurity measures, including encryption, access controls, and system auditing.

•  Protocols for secure destruction of electronic classified information when no longer needed.

These provisions aim to facilitate efficient inter-agency coordination and public service delivery while preserving confidentiality.

Expected Benefits:

By providing clear protocols for electronic transmission, the regulation enhances administrative speed and aligns secrecy practices with modern information technology. It supports digital transformation in public administration without compromising national security or obligations under the Official Information Act, B.E. 2540 (1997).

Next Steps:

The Cabinet has directed submission of the draft to the Committee for the Scrutiny of Draft Legislation and Subordinate Legislation Proposed to the Cabinet. This review will incorporate observations from entities such as the Office of the Public Sector Development Commission, the Office of the Council of State, the Digital Government Development Agency, the National Economic and Social Development Council, and the National Security Council. Formal promulgation will follow upon completion.

Comparison with International Standards:

Thailand’s revisions demonstrate strong alignment with global best practices in electronic handling of classified information, which universally emphasize encryption, access controls, auditing, and secure storage.

•  United States: Executive Order 13526 and NIST SP 800-53 Revision 5 offer detailed, risk-based controls across multiple families (e.g., Access Control, System and Communications Protection). Thailand’s provisions mirror these in core areas but are less granular.

•  European Union: Council Decision 2013/488/EU requires approved cryptography for higher classifications and comprehensive information assurance. Thailand parallels this in transmission and storage requirements.

•  United Kingdom: The Official Secrets Act 1989 (as amended) and related policies incorporate encryption and secure systems, with recent enhancements under the National Security Act 2023 addressing contemporary threats.

•  ISO/IEC 27001: This standard mandates risk-based information classification and controls for transfer and protection. Thailand’s government-specific rules complement this approach.

Similarities include mandates for encrypted transmission, restricted access, secure storage, and audited destruction. Differences lie in depth: international frameworks like NIST provide extensive, customizable controls and certification requirements, whereas Thailand’s update remains procedurally focused on administrative adaptation.

Overall, this reform represents a commendable advancement toward international convergence, bolstering Thailand’s digital governance while upholding robust confidentiality safeguards. Further enhancements could involve adopting more detailed risk-based mechanisms and independent certification processes observed in mature systems.

Author: Panisa Suwanmatajarn, Managing Partner.

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