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Cloud: Government Poised to Launch ‘Go Cloud First’ Policy – Implications and Preparations

In a significant step toward digital transformation, the Thai government is poised to fully implement its “Go Cloud First” policy, mandating the prioritization of cloud computing for public sector IT infrastructure and services. Approved by the Cabinet in September 2023 and further reinforced in June 2024, this initiative aligns with the National Strategy (2018–2037) and the Digital Government Organization Act B.E. 2562 (2019). The Digital Government Development Agency (DGA) has released key drafts in July 2025, including frameworks and guidelines, with implementation slated to begin on October 1, 2025. This move aims to enhance efficiency, security, and service delivery across government agencies, marking a pivotal shift from traditional on-premises systems to scalable cloud solutions.

The policy encompasses a comprehensive framework for cloud management, data classification, and usage guidelines, ensuring that cloud adoption supports national goals of digital economy growth while safeguarding data sovereignty. As Thailand joins global peers in leveraging cloud technology, this article explores the policy’s details, its anticipated effects, and the necessary preparations for cloud service providers.

Overview of the Cloud-First Policy and Guidelines:

The “Go Cloud First” policy requires all government entities—including central administrations, local governments, state enterprises, and independent organizations—to adopt cloud services as the primary IT approach. Key documents outline the roadmap:

  • Cloud Management Framework (Version 7): This draft announcement establishes preferences for public clouds, mandates data centers within Thailand (with exceptions requiring DGA approval), and requires sovereign clouds for highly sensitive data. Agencies must design cloud-native systems, implement security measures, and connect to a central management platform overseen by the DGA.
  • Cloud Data Classification Guideline (Version 1.0): Data is categorized into three levels—Official (low-risk), Protected (medium-risk), and Highly Protected (high-risk)—based on the CIA triad (Confidentiality, Integrity, and Availability) and risk assessments. Highly Protected Data must use community or sovereign clouds to maintain sovereignty and comply with laws like the Personal Data Protection Act B.E. 2562 (2019).
  • Government Cloud Usage Guideline (Version 1.0): This provides principles for procurement, security, and best practices, emphasizing public clouds first, followed by private, community, or hybrid models. It covers service types (IaaS, PaaS, SaaS), migration strategies, cost management, backup protocols, and exit planning to avoid vendor lock-in.

These guidelines, developed by the DGA and approved for consultation by the Digital Government Development Committee (DGDC) in July 2025, ensure procurement aligns with the Public Procurement and Supplies Administration Act B.E. 2560 (2017), promoting transparency and value for money.

Effects of the Policy Implementation:

The adoption of cloud usage under the “Go Cloud First” policy is expected to yield multifaceted benefits, transforming government operations and the broader economy. Key effects include:

  • Enhanced Efficiency and Service Delivery

By shifting to cloud-based systems, government agencies can achieve greater scalability and flexibility, enabling faster deployment of digital services. This will reduce downtime, streamline data sharing among agencies, and improve citizen access to services such as e-government portals, potentially cutting administrative delays by up to 50% in routine processes. The policy’s emphasis on cloud-native designs will foster innovation, allowing for rapid updates and integration with emerging technologies like AI and big data analytics.

  • Cost Savings and Resource Optimization

Traditional IT infrastructure often involves high upfront costs for hardware and maintenance. The pay-per-use model of cloud services is projected to lower expenses by 20-30%, freeing up budgets for other priorities. Tools like pricing calculators and billing alerts will enable real-time monitoring, preventing overspending and promoting fiscal responsibility.

  • Improved Security and Data Sovereignty

With mandatory data classification and security standards aligned with the Cybersecurity Act B.E. 2562 (2019), the policy will bolster defenses against cyber threats. Requiring data storage in Thailand enhances sovereignty, reducing risks from foreign data breaches and ensuring compliance with national laws. This could lead to fewer incidents of data loss, build public trust in digital government services.

  • Economic and Societal Impacts

On a macro level, the policy will stimulate the domestic cloud market, creating jobs in IT and related sectors while attracting investments from global providers. It supports Thailand’s digital economy ambitions, potentially boosting GDP growth through increased productivity. However, challenges such as the need for workforce upskilling and potential initial disruptions during migration must be managed to mitigate short-term effects.

Overall, these effects position Thailand as a regional leader in digital governance, aligning with ASEAN’s digital integration goals.

Addressing Potential Concerns and Global Precedents:

While the “Go Cloud First” policy promises substantial advantages, it has sparked debates regarding potential risks, particularly in areas of national security, data sovereignty, and privacy. Critics argue that relying on cloud services, especially from foreign providers, could lead to loss of control over sensitive data transferred abroad, increasing vulnerabilities to cyber-attacks or unauthorized access. Concerns include jurisdictional ambiguities, where foreign governments might compel access to data under their laws, potentially violating Thai data secrecy and personal privacy protections. Additionally, there are worries about unencrypted data exposure, misuse through AI analysis by providers for business or intelligence purposes, and broader implications for financial institutions handling critical economic data. These issues underscore the need for robust local cloud development, stringent data classification, encryption, multi-factor authentication, and continuous monitoring to safeguard national interests.

However, these concerns can be effectively mitigated, as evidenced by successful cloud adoptions in Western financial sectors. Major banks in the US and Europe have embraced cloud technologies from providers like AWS, Azure, and Google Cloud, demonstrating that with proper safeguards, the benefits outweigh the risks. For instance, JPMorgan Chase and Bank of America have partnered with Microsoft Azure to enhance their operations, leveraging the platform for improved resilience and innovation in services like fraud detection and customer analytics. Wells Fargo employs a multi-cloud strategy with both Azure and Google Cloud, focusing on scalability and data management while maintaining compliance with stringent regulations such as the Gramm-Leach-Bliley Act. In Europe, HSBC and Barclays have integrated AWS for core banking functions, achieving cost efficiencies and faster digital transformations without compromising security. Capital One, a prominent US bank, completed a full migration to AWS, resulting in enhanced agility and reduced infrastructure costs, serving as a model for secure cloud usage in regulated environments. These examples illustrate how Western banks navigate similar sovereignty and privacy challenges through hybrid models, data localization where required, and advanced encryption, leading to operational improvements and regulatory adherence.

Cloud providers further bolster these efforts with robust policies designed to resist unwarranted government or third-party data access. Amazon Web Services (AWS) adheres to the Clarifying Lawful Overseas Use of Data (CLOUD) Act, which requires legal processes like warrants for data disclosure, and publishes transparency reports detailing government requests while challenging overbroad demands in court. Microsoft Azure emphasizes data sovereignty through regional data centers and commitments to only disclose data when legally compelled, often pushing back against requests lacking proper authorization under frameworks like the EU’s GDPR. Google Cloud similarly prioritizes user privacy, offering tools for data residency and encryption keys managed by customers, and has a history of litigating against U.S. government surveillance orders to protect client information from unauthorized access. These policies, combined with compliance certifications like ISO 27001 and SOC 2, enable providers to safeguard data against external pressures, providing reassurance for Thai agencies adopting cloud solutions.

photo of a satellite dish

Preparations for Cloud Providers:

To capitalize on this opportunity, cloud service providers must align with the policy’s stringent requirements. The DGA will evaluate and certify providers, publishing an approved list for government procurement. Key preparations include:

AspectRequirementsActions for Providers
Compliance and CertificationProviders must meet DGA standards for security, data classification, and management. Certification may involve fees and annual reviews.Undergo DGA evaluations, implement controls per the Cybersecurity Standards for Cloud Systems (2024), and prepare documentation for audits.
Data LocalizationData centers and storage must be in Thailand, with sovereign cloud options for sensitive data.Invest in local infrastructure or partner with Thai entities to ensure compliance, avoiding offshoring without approvals.
Security and Best PracticesSupport VPCs, encryption, vulnerability testing, and backup/recovery tools.Enhance offerings with features like AWS Backup or Azure Backup, provide training on secure configurations, and develop exit strategies to prevent lock-in.
Service Models and ScalabilityOffer IaaS, PaaS, SaaS with flexible pricing and migration support.Customize solutions for government needs, including pricing calculators and alerts, while ensuring interoperability with existing systems.
Ecosystem EngagementParticipate in public consultations and DGA collaborations.Engage in training programs, contribute to the cloud ecosystem, and monitor updates via DGA resources like https://kb.dga.or.th/cloud/.

Providers who proactively address these areas will gain a competitive edge in serving Thailand’s public sector, estimated to expand significantly under the policy.

Conclusion:

The Thai government’s launch of widespread cloud usage through the “Go Cloud First” policy represents a forward-thinking commitment to digital excellence. By fostering efficiency, security, and innovation, it promises substantial benefits for citizens and the economy. While valid concerns exist, global precedents from Western banking sectors and strong provider policies demonstrate viable paths to secure implementation. Cloud providers, in turn, must prioritize compliance and localization to thrive in this evolving landscape. As implementation unfolds, ongoing collaboration between the DGA, agencies, and industry stakeholders will be crucial to realizing the full potential of this transformative initiative.

an artist s illustration of artificial intelligence ai this illustration depicts language models which generate text it was created by wes cockx as part of the visualising ai project l

Key Takeaways:

Enhanced Data Security: Compared to the current decentralized systems used by individual agencies, the cloud-based approach with standardized security protocols and centralized oversight will provide stronger protection for government data.

Strategic Shift: Thailand’s “Go Cloud First” policy, effective October 2025, mandates cloud prioritization for government IT, aligning with national digital economy goals.

Operational Benefits: Cloud adoption will enhance efficiency, reduce costs by 20-30%, and improve service delivery through scalable, cloud-native systems.

Security and Sovereignty: Strict data classification and local storage requirements ensure compliance with Thai laws, reducing cyber risks and enhancing trust.

Global Precedents: Western banks like JPMorgan Chase and HSBC demonstrate secure cloud use, mitigating concerns about data privacy and sovereignty.

Provider Readiness: Cloud providers must invest in local infrastructure, comply with DGA standards, and offer robust security to serve Thailand’s public sector effectively.

Government Control: Regardless of which cloud provider the government uses, the government retains sovereignty and control over its data through mandated localization and policy safeguards.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Approves Strategic Stimulus Fund Reallocation to Address Trade Pressures and Strengthen Key Industries

The Thai government has approved the strategic reallocation of funds from its Economic Stimulus Budget to support those affected from the U.S. tariff measures. The reallocated resources will prioritize rapidly implementable projects with demonstrable economic impact, focusing on mitigating U.S. tariff effects, strengthening the agricultural sector, and supporting small-scale entrepreneurs.

Economic Stimulus Budget Framework

Phase 1: Initial budget allocation supports 481 projects encompassing 8,939 activities across infrastructure investment, tourism development, agricultural modernization, and community economic programs.

Phase 2: Secondary budget allocation targets strategic industries and establishes a student loan fund. Priority industries include:

  • Next-Generation Automotive
  • Intelligent Electronics
  • High-Quality Tourism
  • Agriculture and Biotechnology
  • High-Value Food Processing
  • Robotics
  • Aviation
  • Digital Industry
  • Comprehensive Medical Industry
  • Biofuels and Biochemicals

Strategic Priorities for Fund Reallocation

Government officials have emphasized that reallocated funds will be deployed exclusively for projects demonstrating rapid execution capabilities and measurable outcomes. Priority areas encompass:

  • Supporting exporters from U.S. tariff affects
  • Strengthening the agricultural sector
  • Providing targeted assistance to small and medium enterprises (SMEs)

U.S. Trade Relations Context

Alongside budget management initiatives, trade negotiations with the U.S. remain a critical policy concern. Discussions regarding rules of origin for Thai exports have been deferred, while the establishment of a 40% local content requirement remains unresolved. Thai government officials maintain that adopting a definitive position is premature until the U.S. presents its formal policy stance, enabling Thai policymakers to formulate an appropriate strategic response. The budget as allocated will be measured to support the affected until this has come to the conclusion.

Partnership Talks for Sustainable Growth

The Minister of Finance has recently held discussions with members of the Congressional Delegation of the U.S. on various below issues for further consideration and collaboration.

  1. Investment in Thailand – The U.S. delegation recognized Thailand as a country with strong investment potential.
  2. Public Debt – Thailand’s public debt level is relatively low compared to other ASEAN member countries.
  3. 64.2% of its Gross Domestic Product (“GDP”)
  4. 99.2% domestic debt.
  5. 0.8% external debt.
  6. Trade Deficit and Reciprocal Tariff – reaffirmed its commitment to the agreement, including
  7. Increasing imports of the U.S. agricultural products, energy supplies, and military equipment;
  8. Reducing non-tariff barriers (NTBs); and
  9. Monitoring and regulating the transshipment of goods through third countries.

Conclusion

The stimulus fund reallocation demonstrates Thailand’s commitment to balancing immediate economic relief with long-term strategic positioning. Through measures to mitigate U.S. tariff pressures, strengthen agricultural competitiveness, and support SME resilience, the government seeks to stabilize near-term economic performance. Simultaneously, channeling resources into high-potential industries positions Thailand for sustained growth and enhanced global competitiveness.

Author: Panisa Suwanmatajarn, Managing Partner.

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US Watch List: Strategic Intellectual Property Work Plan for Removal

Background:

Under the framework of the U.S. Special 301 Report, the Office of the United States Trade Representative (USTR) annually evaluates the intellectual property (IP) protection and enforcement standards of its trading partners. This assessment categorizes countries into three tiers: Priority Foreign Country (PFC), Priority Watch List (PWL), and Watch List (WL), each with significant implications for trade relations. The 2025 Special 301 Report maintains Thailand’s designation on the Watch List, a status it has held since 2017, following a decade on the PWL from 2007 to 2016. This placement reflects progress in Thailand’s IP framework but underscores ongoing challenges that impact its trade relationship with the United States. Please see 2025 Thailand status in our previous article in the link https://thelegal.co.th/2025/05/14/thailands-2025-special-301-report-on-intellectual-property-protection-and-enforcement-released/

To address these challenges and achieve removal from the Watch List, Thailand has developed a comprehensive IP Work Plan, aimed at aligning its IP ecosystem with international standards. On August 6, 2025, the National Intellectual Property Policy Committee, chaired by senior government officials and involving over 20 public sector agencies, convened to formalize this strategy. The meeting, held at the Ministry of Finance, emphasized the critical role of IP in driving economic growth, fostering innovation, and enhancing Thailand’s global competitiveness, particularly for small and medium enterprises (SMEs).

Key Pillars:

The approved Intellectual Property Development Plan for 2026–2027 serves as the cornerstone of Thailand’s efforts. This plan is structured around four key pillars:

1.  Legislative Development: Modernizing IP laws to meet global best practices, including updates to existing regulations and the introduction of new frameworks where necessary.

2.  Enforcement Enhancement: Strengthening mechanisms to combat IP infringement through improved inter-agency coordination, robust enforcement measures, and stricter penalties.

3.  Public Service Optimization: Streamlining IP-related services, such as registration and examination processes, to enhance accessibility and efficiency for stakeholders.

4.  Stakeholder Engagement and Awareness: Promoting public participation and increasing societal awareness of IP rights to foster a culture of respect for innovation and creativity.

These pillars aim to create a robust IP ecosystem that supports innovation from creation to commercialization, benefiting SMEs and attracting foreign investment. The plan also prioritizes elevating Thailand’s ranking in the Global Innovation Index (GII) through six strategic initiatives: leveraging research and innovation investments, enhancing innovation value through creativity and IP, developing financial and capital market mechanisms for innovation, promoting the scaling and utilization of innovations, fostering innovation-based enterprises and skilled talent, and improving innovation data management.

The IP Work Plan is a proactive response to the USTR’s concerns, specifically designed to address deficiencies highlighted in the Special 301 Report. By implementing these measures, Thailand aims to strengthen its IP framework, enhance enforcement, and demonstrate its commitment to international IP standards. Successful execution is expected to facilitate Thailand’s removal from the Watch List, improve bilateral trade relations with the United States, and provide greater protection for both domestic and international IP holders.

Key Takeaways:

  • Successful implementation of the IP Work Plan is critical for Thailand’s removal from the U.S. Watch List, strengthening trade relations, and enhancing protections for IP holders.
  • Thailand’s continued Watch List status in the 2025 U.S. Special 301 Report underscores the need for enhanced IP protection and enforcement.
  • The Intellectual Property Development Plan 2026–2027, built on legislative, enforcement, service, and awareness pillars, aims to align Thailand’s IP ecosystem with global standards.
  • Strategic initiatives focus on fostering innovation, supporting SMEs, and improving Thailand’s Global Innovation Index ranking.

Author: Panisa Suwanmatajarn, Managing Partner.

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Copyright: Legislative Amendments to Comply with the WIPO Performances and Phonograms Treaty under the RCEP

Thailand became a member of the Regional Comprehensive Economic Partnership (RCEP), a significant multilateral trade agreement, effective January 1, 2022. As part of its commitments under the RCEP, Thailand is obligated to accede to the WIPO Performances and Phonograms Treaty (WPPT) by January 1, 2027, within five years from the RCEP’s entry into force. The WPPT, administered by the World Intellectual Property Organization (WIPO), establishes international standards for the protection of performers’ and phonogram producers’ rights, particularly in the digital environment. To fulfill this obligation, Thailand has undertaken amendments to its Copyright Act B.E. 2537 (1994) (Copyright Act) to align domestic legislation with the treaty’s requirements and to address technological advancements. These amendments, outlined in a draft act reviewed by Thailand’s Council of State, aim to enhance protections for performers and creators while updating penalties for copyright infringement.

Purposes of the Draft Act:

The draft act introduces several key amendments to the Copyright Act to ensure compliance with the WPPT and to strengthen intellectual property protections. The primary objectives are as follows:

1.  Enhancement of Performers’ Rights: The draft revises Sections 44, 49, 52, and 53 and introduces new Sections 44/1 and 44/2 to expand performers’ exclusive rights. These rights now encompass the distribution of original works or copies, making works publicly accessible through electronic media, and renting originals or copies. Performers are also granted the authority to license these rights to others, with or without conditions, thereby strengthening their control over their performances.

2.  Fair Remuneration for Performers: Section 45 is amended to ensure performers receive fair compensation for the broadcasting or public distribution of sound recordings, regardless of whether the use is for commercial purposes. Previously, performers were entitled to remuneration only for commercial uses. The amended provision allows performers to collect compensation from users of sound recordings or from copyright owners (when the latter act as collectors), providing more comprehensive protection for performers’ economic interests.

3.  Expanded Protection for Creators’ Copyright: The draft amends Sections 8(1) and 8(2) to broaden the criteria for creators to acquire copyright. For unpublished works, creators must be Thai nationals, reside in Thailand, or be nationals of or reside in a country party to an international copyright protection convention during most or all of the creation period. For published works, copyright is granted if the work is published in Thailand or any country party to such a convention. These changes align Thailand’s copyright framework with international standards, ensuring broader protection for creators.

4.  Revision of Penalties for Infringement: The draft revises Sections 69, 69/1, and 70 to adjust penalties for copyright and performers’ rights infringements. Previously, under Section 69, infringement carried a fine of 20,000 to 200,000 baht, with commercial infringements incurring imprisonment of six months to four years and a fine of 100,000 to 800,000 baht, or both. The amendment removes the minimum penalties, setting a fine not exceeding 200,000 baht for general infringement and, for commercial infringement, imprisonment not exceeding four years and a fine not exceeding 800,000 baht, or both. Similarly, Section 69/1, addressing specific infringements under Section 28/1, now imposes imprisonment not exceeding four years or a fine not exceeding 800,000 baht, or both, also removing minimum penalties. These changes grant courts greater discretion in sentencing to ensure penalties are proportionate to the circumstances of each case while maintaining the maximum penalties.

Analysis of Key Provisions:

The amendments significantly strengthen performers’ rights by expanding their scope to include digital distribution and public accessibility, reflecting the WPPT’s emphasis on protecting performances in digital environments. The inclusion of non-commercial uses in performers’ remuneration rights under Section 45 marks a significant advancement, ensuring fair compensation across a broader range of uses. This provision enhances economic protections for performers, aligning with international standards for equitable remuneration.

The revised criteria for copyright acquisition under Section 8 facilitate broader protection for creators, particularly those from countries party to international copyright conventions. This amendment ensures Thailand’s compliance with global intellectual property frameworks, fostering an environment conducive to creative innovation.

The adjustment of penalty provisions reflects a balanced approach, removing mandatory minimum penalties to allow judicial flexibility while preserving stringent maximum penalties to deter infringement. This ensures that penalties are tailored to the severity and context of each case, promoting fairness in enforcement.

Key Takeaways:

•  RCEP and WPPT Compliance: Thailand’s accession to the RCEP mandates alignment with the WPPT by January 1, 2027, necessitating updates to its Copyright Act to protect performers and creators in line with international standards.

•  Strengthened Performers’ Rights: Amendments to Sections 44, 44/1, 44/2, 45, 49, 52, and 53 enhance performers’ exclusive rights and ensure fair remuneration for both commercial and non-commercial uses of sound recordings.

•  Broader Creator Protections: Revisions to Sections 8(1) and 8(2) expand copyright eligibility, aligning Thailand’s laws with international conventions and fostering creative output.

•  Flexible Penalties: Updates to Sections 69, 69/1, and 70 remove minimum penalties, granting courts discretion to impose proportionate sanctions while maintaining robust maximum penalties for deterrence.

•  Technological Alignment: The amendments address digital-era challenges, such as electronic distribution and technological protection measures, ensuring Thailand’s copyright framework remains relevant and effective.

These legislative changes position Thailand to meet its RCEP obligations while enhancing protections for intellectual property stakeholders, supporting the nation’s integration into the global creative economy.

Author: Panisa Suwanmatajarn, Managing Partner.

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Trade Competition: Draft Guideline on Unfair Trade Practices in Digital Platforms

Introduction:

The rapid expansion of digital markets, particularly in e-commerce and multi-sided platform businesses, has raised significant concerns regarding unfair trade practices and monopolistic behaviors. To address these issues, the Trade Competition Commission of Thailand (TCCT) has issued the Draft Guidelines for Considering Unfair Trade Practices and Monopolistic Acts in Multi-Sided Platform Businesses, Digital Services, and E-Commerce (the “Draft Guideline”). Open for public consultation from August 19, 2025, to September 18, 2025, these guidelines aim to strengthen regulatory oversight under the Trade Competition Act B.E. 2560 (2017) (the “Act”). This document outlines the key provisions of the Draft, the types of anti-competitive conduct it targets, and its implications for stakeholders in the digital economy.

Purpose of the Guidelines:

The Act seeks to promote free and fair competition in multi-sided platform markets, including e-commerce and digital services, by establishing clear guidelines for business conduct. The Draft Guideline addresses collaborative agreements or legal arrangements between digital platform operators and other businesses in related markets, ensuring compliance with the Act and associated legal frameworks. By doing so, the TCCT aims to prevent monopolistic practices and foster a competitive environment that benefits all market participants.

Categories of Anti-Competitive Conduct:

The Draft Guideline identifies two primary categories of conduct that may undermine competition or constitute unfair trade practices: price-related and non-price-related behaviors.

stock exchange board
Photo by Pixabay on Pexels.com

1. Price-Related Conduct:

The following practices are highlighted as potentially anti-competitive:

  • Predatory Pricing: Setting prices below the average total cost without legitimate economic justification, with the intent to eliminate competitors.
  • Rate Parity Clauses: Mandating uniform pricing across all sales channels, prohibiting sellers from offering lower prices on competing platforms.
  • Resale Price Maintenance: Imposing fixed resale prices on sellers and enforcing compliance through penalties, such as refusal to supply.
  • Unjustified Commissions and Fees: Levying excessive or discriminatory fees, including commissions, advertising, logistics, promotional, or payment processing fees, without reasonable justification. Examples include:
  • Setting fees at excessively high levels;
  • Aligning fees with competitors’ rates (parallel pricing);
  • Charging fees below average total cost to engage in predatory pricing; or
  • Practicing price discrimination, such as charging different rates to “mall sellers” compared to regular sellers.
  • Algorithmic Price Manipulation: Utilizing algorithms or automated tools to distort market prices unfairly, such as manipulating price rankings to favor certain sellers.

2. Non-Price-Related Conduct:

The Draft Guideline also addresses non-price behaviors that may restrict competition, including:

  • Self-Preferencing: Prioritizing the platform’s own products or those of affiliated sellers, while reducing the visibility of competitors’ offerings.
  • Bundling or Forced Usage: Imposing mandatory conditions, such as requiring sellers to use the platform’s proprietary payment gateway or participate in specific promotional events (e.g., “double date sales”).
  • Exclusive Dealing: Enforcing unconditional or predetermined exclusivity arrangements that limit sellers’ ability to engage with other platforms.
  • Discriminatory Practices: Engaging in unfair product rankings among sellers of identical goods or favoring the platform’s in-house logistics provider over competitors.
  • Data Leveraging: Using seller data collected on the platform to gain an unfair competitive advantage for the platform’s affiliated businesses.
  • Collusion: Coordinating with rival platforms or sellers on competitive elements, such as advertisement keyword bidding.
  • Other Restrictive Practices: Any conduct that results in monopolization, reduces competition, or restricts fair market practices.

Stakeholders Impacted:

The Draft Guideline will be enforced in a broad range of stakeholders who are considered to hold a dominant position in the market, including:

  • Digital platform operators in e-commerce and service sectors;
  • Sellers and merchants operating on these platforms;
  • Logistics and payment service providers; and
  • Advertisers and affiliate partners.

Businesses will face increased scrutiny, particularly where practices lack reasonable economic, business, or technological justification. Common practices, such as mandatory use of logistics partners or rate-parity clauses, may now be subject to regulatory challenge.

Conclusion:

The Draft Guideline reflects the TCCT’s heightened focus on regulating the digital economy, particularly platforms with significant market influence. Businesses operating in multi-sided platform markets must review their commercial strategies, pricing structures, and data practices to ensure compliance with the proposed regulations.

Key Takeaways:

Businesses must evaluate their practices to ensure compliance, particularly regarding pricing, data usage, and contractual arrangements.

The TCCT’s Draft Guideline targets unfair trade practices and monopolistic behaviors in digital platforms, with a focus on e-commerce and multi-sided markets.

Anti-competitive conduct is categorized into price-related (e.g., predatory pricing and rate parity clauses) and non-price-related behaviors (e.g., self-preferencing and exclusive dealing).

Stakeholders, including platform operators, sellers, logistics providers, and advertisers, will face increased regulatory scrutiny.

Author: Panisa Suwanmatajarn, Managing Partner.

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Foreign Geographical Indication Registration in Thailand

Overview of Geographical Indications

A Geographical Indication (GI) is a distinctive mark used for products originating from a specific geographical area, where the quality, reputation, or other characteristics of the products are essentially attributable to their geographical origin. It serves as a local brand that signifies both the quality and origin of products. GI marks can be registered regardless of whether they originate from Thailand or abroad by filing the applications with the Department of Intellectual Property (DIP).

To register Thai GI marks, applicants must use a proper name, symbol, and/or sign that identifies their geographical origin. It cannot be just a generic name of the goods. It is required to demonstrably establish a connection between the products and their geographical origin and ensure compliance with public interest, while also ensuring that they do not contravene public order, good morals, or public policy.

For the overseas applicants registering GI marks originating from abroad, it is required to show clear evidence that such marks are protected under the GI law of those countries, and the GI marks registered in those countries have been in continuous use up to the date of application for registration in Thailand.

Registering the GI marks grants the community exclusive rights to their names, enhances the products’ market value, ensures compliance with quality standards, and preserves unique local heritage. Currently, there are 257 registered GI marks, comprising 234 Thai GI products from all 77 provinces of Thailand and 23 foreign GI marks from 9 countries.

basket of mangosteen

International Agreement Context

Thailand and the European Union (EU) are currently negotiating a Free Trade Agreement (FTA), with the aim of concluding the negotiations by 2025. One of the EU’s key requirements is the protection of GI through the exchange of GI lists under the FTA.

Currently, there is no specific legislative provision in Thailand that governs the exchange of GI lists under international agreements. Accordingly, it is necessary to establish specific rules and procedures regarding the registration of foreign GI marks under such agreements. The government has therefore issued the Draft Ministerial Regulation on the Application for Registration of Foreign Geographical Indications under International Agreements B.E. …. (“Ministerial Regulation”), which sets out the criteria, application procedures, and examination processes for the registration of foreign GI marks under international agreements.

Key Features of the Draft Ministerial Regulation

Scope of Applications

This draft Ministerial Regulation is intended to facilitate the registration of foreign GI marks through the exchange of GI lists between Thailand and its negotiating partners.

Date of Protection

Foreign GI marks shall be protected in Thailand once the relevant provisions of the international agreements with Thailand have entered into force.

The Director-General of the DIP shall have the authority to announce, on a case-by-case basis, the date on which the provisions of such international agreements with Thailand will take effect.

Consequences of Unsuccessful Negotiations

In the event that negotiations for an international agreement fail to reach a conclusion, any pending applications for registration shall be deemed automatically withdrawn. Please see details of the draft Ministerial Regulation in our previously published article here [ใส่ลิงค์]

Eligible Applicants

Under the draft Ministerial Regulation, it is designed for the State or government agencies of the contracting party. Natural persons or private legal entities are not permitted to file applications under this Ministerial Regulation. They are required to obtain their GI mark protection through the general registration process.

Procedures for Foreign GI Registration

Although foreign GI marks can be protected in Thailand through the exchange list under the relevant international agreement, the protected right shall not be automatically granted. The registration processes under the draft Ministerial Regulation, as well as those prescribed under the Geographical Indications Protection Act B.E. 2546 (2003), shall still be required (i.e., filing, publication, opposition, counterstatement, registration, and appeal).

Next Steps

The DIP will submit the Draft Ministerial Regulation to the Council of Ministers for subsequent consideration and later publish the same in the Gazette for enforcement.

Author: Panisa Suwanmatajarn, Managing Partner.

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New Tax Framework for Foreign-Sourced Income: Thailand’s Draft Decree Explained

The taxation of foreign-sourced income has emerged as a pivotal issue within Thailand’s tax system, particularly as increasing numbers of Thai individuals engage in overseas employment, investment, and asset holdings. The government seeks to achieve a delicate balance between closing tax loopholes and incentivizing the repatriation of overseas funds to stimulate domestic economic growth.

Historical Framework

Under the previous Revenue Department Order No. GorKhor 0802/696, dated 1 May 1987, foreign-sourced income remained exempt from Thai personal income tax provided it was brought into Thailand in a tax year different from the year in which it was earned. This provision enabled many individuals to legally defer the remittance of foreign income, thereby avoiding immediate taxation obligations.

Current Regulatory Changes

Effective 1 January 2024, the aforementioned provision was repealed by Revenue Department Order No. Por.161/2566. Under this regulation, individuals classified as Thai tax residents, those residing in Thailand for more than 180 days within a calendar year, are now obligated to pay personal income tax on foreign-sourced income if such income is remitted to Thailand, regardless of the calendar year it is earned. The applicable personal income tax rates for this remitted foreign income range progressively from 5% to 35%, determined by the total taxable amount.

Unintended Consequences and Policy Response

While Revenue Department Order No. Por.161/2566 was enacted to enhance tax transparency and align Thailand’s tax framework with international standards, including those established by the OECD, it has generated an unintended consequence. Many Thai individuals earning foreign-sourced income have opted not to remit such funds to Thailand due to concerns regarding potentially substantial tax burdens.

In response to these matters, the Revenue Department is currently drafting a new Royal Decree (hereinafter referred to as “the Draft“) designed to address these conditions.

person holding dollar bills while using a calculator

Key Proposed Provisions

The Draft includes the following principal proposals:

  • Tax Exemption Extension: Personal income tax exemption will apply to foreign-sourced income remitted to Thailand within one to two years from the year it was earned. If remitted after that, the income tax will be applied.
  • Elimination of Same-Year Requirement: The current requirement mandating income remittance within the same calendar year it was earned will be removed.

This revised approach aims to provide taxpayers with enhanced flexibility in managing financial transactions, such as year-end dividend payments, while serving as a positive incentive for overseas Thais to repatriate funds for domestic investment across capital markets, business enterprises, and real estate sectors.

Current Status and Implementation Considerations

While the Draft represents a promising policy development, it has not yet been formally enacted and enforced. Uncertainty remains regarding whether the new provisions will apply retroactively to income remitted to Thailand during 2024.

Until formal enactment occurs, timing remains a critical consideration. Remitting income outside the anticipated grace period may result in taxation under current regulations.

Conclusion

The recent policy initiative by the Thai government reflects a broader strategic objective to incentivize, rather than penalize, the repatriation of foreign-sourced income. This approach serves dual purposes—reducing the tax burden on individuals earning income abroad while acting as a catalyst for attracting capital back into the domestic economy. Should the Draft be formally enacted and enforced, it will communicate a clear and positive message to overseas Thai nationals that repatriating funds will no longer entail prohibitive tax costs.

The success of this policy framework will ultimately depend on its implementation details and the government’s ability to balance revenue generation with economic stimulus objectives.

Author: Panisa Suwanmatajarn, Managing Partner.

Source: International Comparison August 2025: Antea

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Thai Government Policy Response to Recent U.S. Tariff Measures

Following the United States government’s official announcement imposing a 19% import tariff on Thai goods effective August 1, 2025, the Thai government has developed a comprehensive policy framework to mitigate economic impacts. This multi-pronged approach encompasses financial support mechanisms, fiscal policy adjustments, and targeted business assistance programs designed to maintain Thai export competitiveness in the U.S. market while ensuring economic stability throughout this transition period.

U.S. Trade Policy Changes

General Tariff Implementation

The United States has implemented a 19% import tariff on Thai goods, effective August 1, 2025, representing a significant shift in bilateral trade relations.

Copper Products Tariff Structure

Concurrently, the U.S. has imposed a 50% import tariff on copper products from all countries, effective August 1, 2025. This comprehensive measure applies to:

  • Semi-finished copper products
  • Goods with high copper content
  • Copper pipes, wires, rods, and cables
  • Copper connectors and electronic components

The tariff excludes copper scrap, imported raw copper materials, and refined copper—essential components of the global supply chain. These exemptions have precipitated a significant decline in copper prices, resulting in substantial losses for traders who had accumulated inventory in anticipation of increased demand.

Government Response Measures

Immediate Business Support Initiatives

Tax Relief Programs

  • Strategic tax incentives including deductions and credits
  • Reduced corporate income tax rates
  • Targeted relief measures to facilitate business adaptation during the tariff transition

Soft Loan Program

  • Allocation of a minimum of 200 billion baht through state financial institutions
  • Distribution via commercial banking networks
  • Designed to maintain business liquidity and operational continuity

Government Subsidies

  • Competitiveness enhancement funding administered by the Board of Investment (BOI)
  • Targeted support for strategic industries
  • Focus on maintaining competitive positioning in global markets

Cabinet-Approved Economic Stimulus

The Cabinet has authorized two major stimulus initiatives, totaling 18.5 billion baht, specifically designed to:

  • Strengthen national economic competitiveness
  • Provide enhanced student loan support programs

Institutional Support Framework

Export Support Infrastructure

On August 7, 2025, the Ministry of Commerce established a One-Stop Service Center at the Export Center, providing:

  • Comprehensive consultation services
  • Advisory support for affected businesses
  • Problem-solving assistance for both SMEs and large corporations
  • Export facilitation and promotional activities

EXIM Bank Financial Relief Package

The Export-Import Bank of Thailand has implemented comprehensive financial support measures including:

Liquidity Enhancement Programs:

  • Extended repayment terms up to 365 days to alleviate cash flow pressures
  • Interest rate reductions of up to 20% for existing and new loan facilities
  • Pre and post-export revolving credit facilities providing low-interest working capital

Specialized Financing Solutions:

  • Pre-emptive principal repayment holidays extending up to one year for qualifying long-term borrowers
  • Transformation loans starting at 2.75% interest for production upgrades and automation initiatives
  • Post-shipment working capital loans with export insurance (EXIM Safe Trade) providing protection against buyer default

Market Diversification Support:

  • Trade Fair Participation Loans (EXIM Department of International Trade Promotion Empower Financing) for overseas market exploration
  • SME support loans in partnership with the Social Security Office, starting at 2.00% interest, to maintain employment levels and operational stability

Strategic Outlook

The implementation of restrictive U.S. trade measures presents substantial challenges for Thai export sectors. While the Thai government has initiated comprehensive mitigation strategies, ongoing monitoring and assessment of their effectiveness remains critical. In an increasingly volatile global trade environment, Thailand must maintain agility, proactive policy development, and adaptive capacity to preserve its competitive position in evolving international markets.

The success of these measures will largely depend on their implementation efficiency, private sector engagement, and the ability to identify and capitalize on alternative market opportunities while maintaining strong bilateral relationships with key trading partners.

Author: Panisa Suwanmatajarn, Managing Partner.

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Digital Economy: Government Approves Comprehensive Three-Year Data Strategy and Advances AI and Smart City Initiatives

On August 21, 2025, the National Digital Economy and Society Committee convened to approve a series of transformative resolutions aimed at bolstering digital infrastructure, artificial intelligence (AI) development, and smart city initiatives. These decisions underscore the government’s commitment to fostering economic growth, enhancing national competitiveness, and ensuring a sustainable digital future for all citizens.

National Data Strategy:

The committee approved a three-year National Data Policy and Strategy, designed to provide a robust framework for digital transformation. The strategy focuses on four key pillars:

  • Data Infrastructure: Developing a resilient foundation for managing large-scale datasets to support digital innovation.
  • Data Governance: Establishing clear standards to enhance trust and efficiency in digital services.
  • Data Utilization: Promoting secure and widespread use of data across public and private sectors.
  • Digital Workforce: Cultivating a skilled workforce to meet the demands of the digital economy.

National Artificial Intelligence Committee:

A National AI Committee was established to oversee the implementation of the country’s AI action plan. The committee’s objectives include:

  • Advancing local talent and technological innovation in AI.
  • Leveraging AI to drive economic competitiveness.
  • Utilizing AI to address social and environmental challenges, thereby improving the quality of life.

Smart City Development:

The committee extended Smart City certifications for 16 existing projects and granted a new Smart Area certification to the Phuket Tinicon Valley Project, increasing the total number of certified smart cities to 37 across 25 provinces. Notable projects include Mae Moh Smart Living City (Lampang), Khlong Phadung Krung Kasem (Bangkok), Yala Smart City for Civic Engagement, and Samyan Smart City (Bangkok), each achieving over 80% progress. Since 2021, private sector investment in smart city development has surpassed 30.9 billion baht, driven by tax incentives and public procurement privileges. These initiatives integrate advanced technologies, such as intelligent transportation systems and clean energy management, to enhance urban living standards.

man standing on stairs

Public Internet Network Expansion:

The committee endorsed the management of the National Broadband Network, “Net Pracharat,” under an Open Access Network model. This initiative aims to ensure equitable and universal internet access, particularly in underserved areas. The Office of the National Digital Economy and Society Commission will lead the implementation, focusing on:

  • Economic Empowerment: Enabling citizens in remote areas to access online markets, thereby increasing income opportunities through activities such as selling agricultural products and handicrafts.
  • Cost Reduction: Lowering internet service costs by expanding access through government-supported infrastructure and making digital services more affordable.

Economic and Social Impacts:

The approved initiatives are poised to deliver significant economic and social benefits. The public internet network will bridge the digital divide, fostering economic inclusion and reducing connectivity costs. Smart city developments will enhance urban management, attract private investment, and improve residents’ quality of life through sustainable and innovative solutions.

Key Takeaways:

  • These initiatives reflect a commitment to building a competitive, inclusive, and sustainable digital economy.
  • The three-year National Data Strategy emphasizes data infrastructure, governance, utilization, and workforce development to drive digital transformation.
  • The establishment of a National AI Committee will advance AI innovation, economic growth, and solutions for social and environmental challenges.
  • Smart city certifications have been extended to 16 projects, with a new certification for the Phuket Tinicon Valley Project, contributing to 37 smart cities across 25 provinces.
  • The Open Access Network model for “Net Pracharat” will enhance internet accessibility, reduce costs, and create economic opportunities for citizens.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Labor Landmark Case: Employers Jailed for Unpaid Severance of more than 800 Workers

In August 2025, a pivotal moment in Thailand’s labor rights landscape occurred when the Samut Prakan Provincial Court denied bail to four executives of the company who were immediately imprisoned for unlawfully terminating of  more than 800 employees without paying mandated severance and advance notice compensation. This case marks a rare instance of employers facing immediate incarceration for violating labor laws, reinforcing the judiciary’s commitment to upholding workers’ rights under the Labor Protection Act B.E. 2541 (1998).

Background of the Case:

The dispute originated in November 2024, when the company terminated more than 800 employees without providing severance pay or advance notice payments, as required by Thai labor law. The total amount owed to the employees is approximately 220 million baht (USD 6.2 million). Despite labor inspectors’ orders to compensate the workers, the company’s executives failed to comply, prompting the affected employees, supported by labor advocates, to pursue criminal legal action against the company and executives.

Legal Framework: Labor Protection Act B.E. 2541 (1998):

The court’s ruling is grounded in the Labor Protection Act B.E. 2541 (1998), which outlines key protections for employees:

•  Mandates advance notice of termination and payment in lieu of notice.

•  Requires severance pay for employees terminated without cause, with amounts based on length of service.

•  Imposes penalties, including fines and up to six months’ imprisonment, for employers who fail to comply with severance or other compensation requirements.

The executives’ non-compliance with labor inspectors’ orders and their attempts to delay judicial proceedings justified the court’s decision to deny bail and order immediate detention.

Court Proceedings and Worker Advocacy:

The former employees attended the court’s hearing to oppose the executives’ bail applications, submitting objections citing the financial hardship caused by the employer’s actions and their defiance of legal orders. The court’s denial of bail and immediate imprisonment of the executives is an uncommon outcome in Thailand, where labor disputes often result in prolonged negotiations or unenforced rulings. The workers’ eight-month struggle involved repeated appeals to government bodies, including the Ministry of Labor, police, and public prosecutors, showcasing the power of collective action.

Broader Implications for Thai Labor Rights:

This case sets a significant precedent for Thailand’s labor movement, demonstrating that persistent advocacy can lead to criminal accountability for employers. Enforcement of labor laws in Thailand has historically been inconsistent, with many employers evading penalties. This case signals that violations of the Labor Protection Act B.E. 2541 (1998) can result in severe consequences, potentially deterring future non-compliance. However, the affected workers still await their 220 million baht in compensation, and the Ministry of Labor’s silence on this and similar cases involving over 43,000 workers nationwide highlights the need for stronger enforcement and systemic reforms.

Key Takeaways:

1.  Judicial Accountability: The court ruling upholds the Labor Protection Act B.E. 2541 (1998), affirming the judiciary’s role in protecting workers’ rights.

2.  Power of Collective Action: The workers’ eight-month campaign through protests and legal advocacy illustrates the impact of organized labor in achieving justice, despite limited union protections.

3.  Ongoing Challenges: The workers have yet to receive their 220 million baht in compensation, underscoring gaps in enforcement and the need for government intervention.

4.  Precedent for Employers: The imprisonment of the executives serves as a deterrent, warning employers of criminal penalties for labor law violations.

5.  Call for Reform: The case highlights systemic issues, including the Ministry of Labor’s inaction and weak unionization laws, necessitating reforms to strengthen labor protections.

This landmark ruling not only delivers justice for more than 800 affected workers but also galvanizes Thailand’s labor movement, proving that collective action can challenge systemic inequities.

Author: Panisa Suwanmatajarn, Managing Partner.

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