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Thailand Launches “Economic Cabinet Plus” Plan to Drive High-Growth and High-Income Status

The Thai government has launched a major initiative to work more closely with the private sector on economic policy. Through a new fast-track mechanism and a Joint Public-Private Consultative Committee, the government aims to process private-sector proposals more efficiently and convert business ideas into concrete projects.

What the Government Has Agreed To Do

The initiative’s central aim is to cut red tape and streamline slow-moving bureaucratic processes. The government has established a special fast-track channel that allows economic proposals from business leaders to be reviewed and approved without the delays typical of the traditional system. A newly formed joint public-private committee is then tasked with translating these ideas into implemented projects.

To carry out this plan, the government is driving the economy through four main engines, designed to work in tandem to deliver both short-term and long-term results:

  1. Attracting new investment through a future investment hub and a fast-track approvals initiative aimed at resolving bottlenecks and accelerating project sign-off. The focus is on positioning Thailand as a regional hub for AI, digital technology, and financial services, while advancing the green economy and next-generation automotive industries.
  2. Shifting tourism strategy away from visitor volume and toward high-value, quality tourism — including wellness tourism and medical tourism — while pursuing Free Trade Agreements with major markets such as the EU, the US, and the UK.
  3. Upgrading the national skills base by prioritizing STEM and AI education, and building a stronger ecosystem for startups and private-sector research.
  4. Reforming internal government processes by reducing bureaucratic red tape, expanding digital government and e-licensing services to curb corruption, and updating regulations so that government budgets flow into the economy more quickly.

Under these four engines, the government has identified seven target industries for long-term growth:

  1. High-quality agriculture and food
  2. Future automotive
  3. Smart electronics and digital technology
  4. Medicine and healthcare
  5. High-quality tourism
  6. Global and regional trade
  7. The creative economy

The Government’s Goals

Working in close coordination with the private sector, the government has set measurable targets. First, it aims to raise Thailand’s economic growth potential above 3% annually — a marked improvement on recent performance. Second, it wants to place Thailand among the world’s top 20 most competitive economies, positioning the country as a regional investment hub. The overarching goal of this 12-year plan is to elevate Thailand to “high-income country” status, raising average annual per-capita income to roughly $15,000, up from the current $8,000–$9,000.

What This Means for Investors

For both Thai and foreign investors, the plan offers meaningful advantages. The fast-track system is designed to reduce red tape and shorten approval timelines for licenses and permits. Investors in AI, green energy, digital technology, and financial services — along with the seven target industries — can expect additional support and a more favorable regulatory environment. The government’s 12-year roadmap is also intended to give investors greater confidence in Thailand’s long-term policy stability.

What This Means for Thai Citizens

For Thai citizens, the plan is intended to translate into tangible benefits. Growth in high-tech, financial, and advanced manufacturing industries is expected to create higher-skilled, better-paying jobs. Investment in STEM and AI training aims to build a more competitive workforce, while faster budget disbursement and integration into new investment supply chains should benefit small and medium-sized enterprises (SMEs). As the economy expands, the government intends to reinvest additional revenue into public transport, healthcare, and education.

Key Takeaways

  • A new fast-track mechanism is intended to accelerate the transition from private-sector proposals to government action, organized around four core economic engines.
  • Official targets include lifting the country’s economic growth potential above 3%, placing Thailand in the global top 20 for competitiveness by 2030, and raising average per-capita income to roughly $15,000 within 12 years.
  • Investors can expect reduced red tape, faster licensing through e-government initiatives, and targeted support across seven priority industries.

Thai citizens stand to benefit from STEM/AI training programs, stronger SME support, higher-paying jobs, and improved public infrastructure.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s New Investigation Policy on Nominees Matter

The Government of Thailand has launched a nationwide investigation campaign targeting the illegal use of Thai “nominees” — local Thai citizens hired by foreign investors to circumvent restrictions on land ownership and business operations. Enforcement has been concentrated in Thailand’s major economic and tourism hubs, including Phuket, Chiang Mai, and Bangkok.

Action Plan and Policy

The campaign reflects a government priority to ensure fair competition and transparency within the local economy. It is being implemented jointly by 23 Thai government departments, including the Royal Thai Police, the Department of Business Development (DBD), and the Department of Lands. Under the action plan, authorities are re-examining corporate registrations, tracing the source of funds used by Thai shareholders, and reviewing companies in tourist areas with suspicious or unusual ownership structures.

Current Status and Practices

Enforcement efforts to date have produced significant results. Officials report that 172 land plots in the southern economic provinces — covering approximately 51 acres and valued at roughly 1.67 billion baht — are currently under investigation. As a result, courts have issued 107 arrest warrants, leading to 65 arrests of Thai nominees and foreign investors so far.

Government officials have disclosed that Israeli nationals represent the largest group implicated in these illegal nominee arrangements, followed by French, Russian, and other European nationals. The sectors most frequently affected include hotels, resorts, restaurants, and cannabis shops. A common scheme involves registering low-income Thai employees or local citizens as majority shareholders holding more than 50% of company shares — an arrangement that is often easy to identify, since these individuals typically lack the personal savings or income needed to fund such large-scale investments.

The legal consequences of enforcement are becoming increasingly severe. In recent rulings in Surat Thani — the southern province home to the popular tourist destination Koh Phangan — courts have sentenced convicted nominees and foreign investors to prison terms and fines, and ordered them to divest illegally acquired land within a strict timeframe of 180 days to one year.

Future Steps and Business Implications

This intensified enforcement signals a permanent shift toward stricter regulatory oversight of foreign investment in Thailand. The government is now expanding investigations beyond economic and tourism centers to other regions nationwide, aiming for comprehensive enforcement against nominee structures across the country.

The interagency screening process will introduce stricter background and financial checks at both the company registration and land-transfer stages. As a result, foreign investors should expect more rigorous scrutiny regarding the source of their Thai partners’ investment funds. The government also plans to involve the Anti-Money Laundering Office (AMLO) to freeze and seize bank accounts and assets linked to nominee networks.

Key Takeaways

  • AMLO will be engaged to freeze bank accounts and seize assets connected to nominee networks.
  • Thailand is enforcing its new anti-nominee policy nationwide, with particular focus on — but not limited to — major economic provinces.
  • The 23-department investigation framework enables deeper scrutiny of business funding and shareholder backgrounds, meaning investors should anticipate more intensive compliance checks.
  • Investigations are concentrated on, but not limited to, hotels, resorts, restaurants, and cannabis shops with suspicious Thai shareholding structures.
  • Courts are issuing prison sentences, fines, and mandatory orders to divest illegally acquired land within one year.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s Draft Immigration Act and Hotel Act: A Major Step Towards Digitalization and Regulatory Reform

Background

Thailand is taking another significant step in its regulatory reform agenda through proposed amendments to the Immigration Act, B.E. 2522 (1979), and the Hotel Act, B.E. 2547 (2004). The draft legislation forms part of the government’s broader Regulatory Guillotine initiative, which seeks to eliminate unnecessary legal requirements, simplify administrative procedures, and reduce compliance burdens for both businesses and the public.

The proposed amendments are also intended to enhance Thailand’s competitiveness by creating a more foreigner-friendly regulatory environment that encourages investment, facilitates tourism, and supports economic growth. At the same time, the reforms modernize enforcement by replacing criminal fines for minor regulatory violations with administrative (disciplinary) fines, consistent with Section 77 of the Constitution of the Kingdom of Thailand.

1. Draft Immigration Act (No. ..), B.E. ….

1.1 Modernization of Administrative Structure

Draft Sections 3 and 4 update the terminology used throughout the Immigration Act to reflect the current organizational structure of the Royal Thai Police. The definition of “Director-General” is repealed, and all references to the “Director-General” are replaced with “Commissioner-General of the Royal Thai Police.” In addition, the term “Immigration Division” is updated to “Immigration Bureau.”

1.2 Removal of Outdated and Redundant Reporting Requirements

One of the most significant reforms is the reduction of reporting obligations imposed on foreign nationals.

Under Draft Section 5, which amends Section 37 of the Immigration Act:

  • Section 37(1) is repealed, removing the prohibition on temporary residents engaging in employment. Because employment of foreigners is already governed by the Foreign Business Act, B.E. 2542 (1999), and the Emergency Decree on the Management of Foreign Workers, B.E. 2560 (2017), this provision is considered redundant.
  • Section 37(2) is repealed, abolishing the requirement for foreigners to notify immigration officials of their place of residence. This obligation duplicates the TM30 reporting requirement already imposed on property owners, possessors, and hotel operators.
  • Sections 37(3) and 37(4) are repealed, eliminating the requirements to report changes of residence and temporary travel to another province exceeding 24 hours. These obligations had already been exempted in practice under the Royal Thai Police Regulations B.E. 2563 (2020).
  • Section 37(5) is retained, preserving the existing 90-day reporting requirement for long-term foreign residents. However, the Commissioner-General of the Royal Thai Police will be empowered to prescribe more flexible reporting methods, procedures, and timeframes.

1.3 Elimination of Duplicate Hotel Reporting

Draft Section 6 repeals Section 38 of the Immigration Act, removing the requirement for hotel operators to submit duplicate reports to immigration authorities. Hotel managers will instead report guest information solely under the Hotel Act, through a single, unified reporting mechanism.

1.4 Flexible Permanent Residence Quotas

Draft Section 7 repeals Section 40 of the Immigration Act, removing the existing statutory quota of 100 permanent residence approvals per nationality and 50 approvals for stateless persons each year. Annual quotas will instead be determined by the government based on Thailand’s prevailing economic and social circumstances.

1.5 Reform of Penalties

Draft Sections 8 and 9 repeal Sections 75, 76, and 77 of the Immigration Act, replacing criminal penalties for minor reporting violations with administrative (disciplinary) fines. This amendment reflects the policy set out in Section 77 of the Constitution, under which criminal sanctions are reserved for serious misconduct.

1.6 Transitional Provisions

Draft Section 10 provides that existing procedures relating to residence reporting, address notifications, and permanent residence applications will remain in effect for a transitional period of up to one year after the Draft Act comes into force.

1.7 Administration of the Act

Draft Section 11 designates the responsible Minister to oversee implementation and ensure continuity throughout the transition period.

2. Draft Hotel Act (No. ..), B.E. ….

2.1 Alignment of Definitions

Draft Section 3 introduces the definition of “Foreigner” into the Hotel Act, adopting the same meaning as under the Immigration Act to ensure consistency between the two statutes.

2.2 Digitalization of Hotel Guest Registration

Draft Section 4, which repeals and replaces Sections 35 and 36 of the Hotel Act, modernizes hotel guest registration by requiring hotel managers to maintain guest records electronically.

Hotel managers will be required to collect only the information necessary for regulatory purposes and to submit guest registration data electronically to the Registrar every 24 hours. The Registrar will then automatically transmit information relating to foreign guests to the Immigration Bureau, establishing a single-window reporting mechanism.

The amendment also authorizes the Department of Provincial Administration (DOPA) and the Registrar to compile and disclose guest registration information to other government agencies, where such disclosure is authorized by law and serves a legitimate public purpose.

In addition, Draft Section 9 requires DOPA to establish and maintain the electronic registration platform.

2.3 Transition to Paperless Administration

Draft Section 5 repeals Section 37 of the Hotel Act, eliminating the requirement for hotel operators to obtain replacement paper registers where records have been lost or destroyed. This amendment supports the transition to a fully electronic registration system.

2.4 Reform of Penalties

Draft Sections 7 and 8 amend the penalty provisions by replacing criminal sanctions with administrative (disciplinary) fines for violations of Sections 35 and 36. Part 2 of the Act is also renamed to reflect the revised enforcement framework.

2.5 Transitional Provisions

Draft Sections 10 and 11 permit hotels to continue using existing registration methods and forms, including the traditional Ro.Ro. 4 register, until the new electronic system and prescribed digital forms become fully operational.

2.6 Entry into Force

The responsible Minister will oversee implementation throughout the transitional period. The Draft Act will enter into force 30 days after its publication in the Royal Gazette.

Conclusion

The Draft Immigration Act and the Draft Hotel Act together represent a significant milestone in Thailand’s regulatory reform agenda. By eliminating overlapped requirements, introducing integrated digital administration, and replacing criminal penalties with proportionate regulatory fines, the proposed legislation seeks to create a more efficient legal framework while maintaining effective immigration control.

If enacted, these reforms are expected to reduce compliance costs for businesses, simplify immigration procedures for foreign nationals, improve inter-agency coordination, and strengthen Thailand’s attractiveness as a destination for international investors, skilled professionals, and tourists.

Author: Panisa Suwanmatajarn, Managing Partner.

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Draft Laws on the Extension and Expansion of Tax Measures Supporting Electronic Tax Systems

In the context of accelerating digital adoption worldwide, the Thai Revenue Department of the Ministry of Finance (the “RD“) is advancing Thailand’s digital transformation of tax administration and services by proposing two draft laws to the Cabinet on 16 June 2026. The Cabinet approved both draft laws in principle, following the affirmation of the Office of the National Economic and Social Development Council (NESDC), the Budget Bureau, and the Electronic Transactions Development Agency (the “ETDA“). The RD positions these draft laws as key mechanisms to reinforce the longstanding effort to promote electronic tax systems (the “e-Tax Systems”), encompassing e-Tax Invoice, e-Receipt, and e-Withholding Tax. The two draft laws are as follows:

  • Draft Royal Decree issued under the Revenue Code governing the Exemption from Revenue Taxes (No. B.E. … (the “Draft Royal Decree“); and
  • Draft Ministerial Regulations issued under the Revenue Code governing the Income Taxes (No. ) B.E. … (the “Draft Ministerial Regulations“).

Together, the two draft laws will broaden the scope of eligibility for tax incentives and extend the implementation period of existing tax measures relating to e-Tax Systems, as currently prescribed under the Royal Decree issued under the Revenue Code governing the Exemption from Revenue Taxes (No. 766) B.E. 2566 (2023) (the “Royal Decree No. 766”) and the Ministerial Regulations issued under the Revenue Code governing the Income Taxes (No. 389) B.E. 2566 (2023) (the “Ministerial Regulations No. 389”), respectively. In addition, the proposed drafts are designed to encourage greater cooperation from the private sectors — specifically, business operators acting as service providers of e-Tax Systems (the “Service Providers“) — by offering tax incentives to offset the costs associated with meeting the ETDA’s security standards and investing in the requisite electronic infrastructure. This is intended to reduce the financial burden on qualifying entities, simplify tax administration for taxpayers with limited familiarity with digital systems, and improve the overall efficiency of e-Tax Systems.

Tax Measures under Royal Decree No. 766

The measures promoting investment in e-Tax Systems were introduced under Royal Decree No. 766 and were applicable from 1 January 2023 to 31 December 2025. Companies or juristic partnerships that acted as Service Providers of e-Tax Invoice and e-Receipt services, e-Filing services, e-Stamp Duty services, or special account data collection services for electronic platforms were entitled to a corporate income tax exemption equivalent to twice the amount of qualifying investment expenses. Eligible expenses are divided into three main categories, each subject to specific terms and conditions:

  1. Expenses from investment in e-Tax Invoice and e-Receipt systems — comprising expenses incurred in the preparation of electronic data collection systems and the acquisition of software, computers, related electronic equipment, and other devices used to create, transmit, receive, or store such data. Excluded from this category are repair expenses for such equipment and expenses arising from electronic data operations that fall outside the scope of e-Tax Invoice and e-Receipt system services.
  2. Expenses from investment in e-Withholding Tax systems — comprising expenses incurred in the preparation of tax remittance systems and the acquisition of software, electronic certificate storage devices, computers, or other devices used for tax remittance. Repair expenses for such equipment are excluded.
  3. Fees for the use of e-Tax Invoice, e-Receipt, and e-Withholding Tax systems — comprising service charges or fees paid to Service Providers for the preparation or transmission of electronic data, electronic certificates, or electronic storage services for tax remittance through such systems.

Pursuant to the Royal Decree No. 766, assets or funds utilized under categories 1 and 2 above must satisfy all of the following criteria:

a. Must not have been previously used;
b. Must be eligible for depreciation deductions and must be acquired and available by 31 December 2027;
c. Must be located in Thailand;
d. Must be used in the business for not fewer than three consecutive accounting periods beginning from the first accounting period in which such assets or funds are acquired and available;
e. Must not be eligible for any other tax benefits under applicable law; and
f. Must not be eligible for tax exemptions, whether in whole or in part, under investment promotion law, the law on enhancement of competitiveness in target industries, or Eastern Economic Corridor (EEC) laws.

Draft Royal Decree and Key Amendments

Since the implementation of the tax measures under Royal Decree No. 766, Service Providers have faced increasing financial burdens arising from their legal obligation to comply with the ETDA’s security standards governing the management of electronic data received from taxpayers. These obligations entail additional costs for electronic data system audits and assessments conducted by the ETDA. According to data collected by the RD and other relevant authorities, such requirements have resulted in average annual costs of approximately THB 250,000 per Service Provider.

The Draft Royal Decree seeks to support Thailand’s digital transformation objectives while preserving the existing investment promotion framework, including the same terms, conditions, and exclusions established under Royal Decree No. 766. Accordingly, the draft law retains the three categories of eligible expenses described above. The key amendments introduced are: (1) an extension of the implementation period from 1 January 2026 to 31 December 2027, and (2) the introduction of a new fourth category of eligible expense, as follows:

  1. Fees for the use of information system audit and assessment services — comprising fees or service charges paid by a Service Provider to the ETDA for the audit and assessment of electronic data systems used in connection with the provision of e-Tax Invoice and e-Receipt services, e-Filing services, e-Stamp Duty services, or special account data submission services for electronic platform operators.

Under category 4, Service Providers will be entitled to a tax exemption equivalent to twice the amount of fees paid to the ETDA for information system audit and assessment services. This measure is designed to alleviate the financial burden arising from compliance requirements, encourage greater private-sector participation in the RD’s digital tax ecosystem, and ultimately enhance service quality for taxpayers and strengthen Thailand’s competitiveness in the digital economy.

Tax Measures under Ministerial Regulations No. 389

Under Ministerial Regulations No. 389, measures promoting the use of the e-Withholding Tax system were applicable from 1 January 2023 to 31 December 2025. These measures provided tax benefits in the form of reduced withholding tax and income tax rates for both juristic persons (excluding foundations and associations) and individuals making payments through the e-Withholding Tax system. Specifically, the applicable withholding tax rate was reduced from 5% to 3%, and the applicable income tax rate was reduced from 2% to 1%. The reduced income tax rates applied to the following categories of assessable income under the Revenue Code:

  1. Juristic persons (excluding foundations and associations) — income derived from employment duties or positions, including commission fees and bonuses; goodwill and royalty fees; rental income from assets; income from liberal professions; income from contracting services; and income from hire-of-work services, prizes from contests, competitions, or lucky draws, and other service income.
  2. Individuals — rental income from assets; income from liberal professions; income from contracting services; income from hire-of-work services, prizes from contests, competitions, or lucky draws, and other service income; and income of public entertainers resident in Thailand.

Draft Ministerial Regulations and Key Amendments

The measures implemented under Ministerial Regulations No. 389 have materially contributed to Thailand’s digital transformation and have significantly encouraged taxpayers — including businesses, foreign entities, and individuals — to manage their withholding tax and income tax obligations through the RD’s electronic platform. In recognition of this success, the RD has proposed a new Draft Ministerial Regulations to extend the application of these measures for an additional two years, from 1 January 2026 to 31 December 2027.

Pending the entry into force of the Draft Ministerial Regulations, the Ministry of Finance issued the Notification of the Ministry of Finance Regarding the Extension of the Deadline for Additional Fund Remittance through the e-Withholding Tax System, dated 6 February 2026. This notification serves as an interim measure to bridge the gap until the new regulations take effect, permitting taxpayers who made payments through the e-Withholding Tax system between 1 January and 31 March 2026 to remit any additional withholding tax by 30 April 2026, thereby preserving access to the reduced rates during the transitional period.

Summary and Key Takeaways

Businesses are advised to monitor the formal enactment of these draft laws to assess their eligibility for the extended tax incentives.

The RD has proposed two draft laws aimed at reducing compliance costs and encouraging greater private-sector participation in Thailand’s digital tax ecosystem.

The Cabinet, together with other relevant government authorities, has approved in principle both the Draft Royal Decree and the Draft Ministerial Regulations, which extend tax incentives for the use of e-Tax Systems through 31 December 2027.

The Draft Royal Decree introduces a new category of eligible expenses, allowing Service Providers to claim a tax exemption equal to twice the ETDA audit and assessment fees incurred.

Tax incentives under Royal Decree No. 766 for investments in, and the use of, e-Tax Systems — including e-Invoice, e-Receipt, and e-Withholding Tax — will continue under the extended regime.

The Draft Ministerial Regulations extend the reduced withholding tax and income tax rates applicable to qualifying payments made through the e-Withholding Tax system.

Pending the new regulations, the Ministry of Finance has issued an interim notification to preserve access to e-Withholding Tax incentives during the transitional period.

Author: Panisa Suwanmatajarn, Managing Partner.

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PDPC Certification: Turning Privacy Compliance into a Competitive Advantage

The Office of the Personal Data Protection Committee (PDPC) has recently introduced a formal certification framework for personal data protection under the Personal Data Protection Act B.E. 2562 (2019) (PDPA). The framework establishes a mechanism through which organizations may obtain certification and display certification marks demonstrating adherence to recognized data protection standards.

While many organizations may initially view certification as another compliance exercise, the broader significance of the new framework lies in its potential to transform privacy compliance from a legal obligation into a strategic business asset. As customers, business partners, investors, and regulators place increasing emphasis on data governance, certification offers organizations an opportunity to distinguish themselves in an increasingly competitive marketplace.

Privacy as a Business Differentiator:

Over the past several years, data privacy has evolved from a niche compliance issue into a boardroom-level concern. High-profile data breaches, growing public awareness of privacy rights, and increasingly stringent regulatory requirements have elevated privacy protection into a key component of corporate governance.

As a result, organizations are increasingly expected not only to comply with legal requirements but also to demonstrate that compliance in a credible and transparent manner.

The new certification framework addresses this need by providing a mechanism through which organizations can obtain independent recognition of their privacy management practices. Rather than merely asserting compliance, certified organizations can point to a formal assessment conducted under a framework recognized by the PDPC.

In many industries, this distinction may prove valuable. Consumers are becoming more selective about how their personal information is collected, used, and protected. Organizations that can demonstrate a higher level of commitment to privacy may gain a competitive advantage over those that rely solely on contractual assurances or privacy notices.

Strengthening Customer Trust:

Trust is often one of the most valuable intangible assets an organization possesses. In the digital economy, that trust is closely linked to how personal data is managed.

Organizations routinely collect personal information from customers, employees, suppliers, and business partners. Any perceived weakness in data protection practices can quickly damage brand reputation and customer confidence.

Certification can help bridge the trust gap by providing independent verification that an organization has implemented appropriate data protection controls. Customers may view certification as evidence that an organization takes privacy obligations seriously and has invested in developing robust governance measures.

For businesses operating in sectors involving extensive personal data processing—such as financial services, healthcare, technology, telecommunications, hospitality, retail, and e-commerce—the ability to demonstrate recognized privacy standards may become an increasingly important competitive differentiator.

Facilitating Business-to-Business Relationships:

The benefits of certification may extend well beyond customer-facing activities.

Organizations increasingly conduct privacy and cybersecurity due diligence before engaging vendors, service providers, and business partners. Privacy questionnaires, vendor assessments, and contractual compliance reviews have become standard features of commercial transactions.

A recognized certification may help organizations streamline these processes by providing objective evidence of their privacy governance capabilities. Business partners may gain greater confidence in certified organizations, reducing the need for extensive verification exercises and accelerating commercial negotiations.

This may be particularly beneficial for service providers that process personal data on behalf of clients, including cloud service providers, software companies, outsourcing providers, human resources service providers, and professional service firms.

As privacy-related contractual obligations become more sophisticated, certification may increasingly serve as a practical tool for demonstrating compliance readiness.

Enhancing Corporate Governance:

One of the most significant benefits of certification may be the strengthening of internal governance structures.

Organizations pursuing certification are likely to establish clearer accountability mechanisms, more structured policies, improved risk management processes, and stronger oversight of personal data processing activities.

These governance improvements often extend beyond privacy compliance itself. Well-designed privacy programs frequently contribute to broader organizational objectives, including operational efficiency, information security, risk management, and regulatory compliance.

In this respect, certification should not be viewed merely as a badge or marketing tool. The process of achieving and maintaining certification may encourage organizations to embed privacy considerations more deeply into their governance culture and decision-making processes.

Supporting Regulatory Engagement:

Certification does not eliminate an organization’s legal obligations under the PDPA, nor does it provide immunity from regulatory enforcement.

Nevertheless, certification may serve as evidence that an organization has implemented structured and recognized measures to protect personal data.

Should a regulatory inquiry, investigation, or enforcement action arise, certification may help demonstrate that the organization has adopted a proactive and accountable approach to compliance. While each case will depend on its specific facts and circumstances, organizations that can demonstrate established governance frameworks may be better positioned when engaging with regulators.

This reflects a broader shift in privacy regulation globally, where regulators increasingly focus on accountability and governance rather than merely technical compliance.

Alignment with International Privacy Developments:

The introduction of a certification framework also aligns with broader international developments in privacy regulation.

The European Union’s General Data Protection Regulation (GDPR) recognizes data protection certification mechanisms under Articles 42 and 43 as tools for demonstrating compliance with data protection requirements. Although GDPR certification schemes are still developing across Europe, the underlying principle is clear: independent certification can strengthen trust, transparency, and accountability in personal data processing.

The PDPC’s certification framework follows a similar philosophy. Rather than relying exclusively on enforcement mechanisms, the framework encourages organizations to demonstrate compliance proactively through recognized standards and independent assessment.

For multinational organizations, this development may be particularly significant. Many businesses already operate under global privacy frameworks and seek consistency across jurisdictions. The availability of a domestic certification mechanism may help organizations align local compliance initiatives with broader international privacy governance strategies.

Supporting Cross-Border Business Opportunities:

As businesses increasingly participate in regional and global digital ecosystems, privacy credentials can become an important factor in commercial decision-making.

Foreign customers, investors, and business partners often assess privacy governance capabilities before entering into business relationships involving personal data processing. Organizations that can demonstrate recognized privacy standards may enjoy greater credibility during these assessments.

Certification may therefore provide advantages when competing for international business opportunities, participating in global supply chains, or providing services to overseas customers.

While certification alone will not satisfy all cross-border compliance requirements, it may serve as a valuable indicator of organizational maturity and commitment to responsible data management.

Looking Ahead:

The introduction of the PDPC’s certification framework represents more than a new compliance mechanism. It signals the continuing evolution of privacy regulation toward a model centered on accountability, governance, and demonstrable trustworthiness.

Organizations that view certification solely as a regulatory requirement may overlook its broader strategic value. In an environment where privacy expectations continue to rise, certification has the potential to strengthen customer confidence, facilitate commercial relationships, enhance corporate governance, and support long-term business growth.

For many organizations, the most significant benefit of certification may ultimately be its ability to transform privacy compliance from a cost center into a source of competitive advantage.

Key Takeaways:

  • The PDPC has introduced a formal certification framework for personal data protection under the PDPA.
  • Certification enables organizations to demonstrate privacy compliance through independent assessment and recognition.
  • Certified organizations may strengthen customer trust and enhance their market reputation.
  • Certification can facilitate vendor due diligence and improve business-to-business relationships.
  • The framework encourages stronger governance, accountability, and risk management practices.
  • Certification may help organizations demonstrate proactive compliance efforts when engaging with regulators.
  • The framework aligns with international developments, including certification mechanisms recognized under the GDPR.
  • Organizations engaged in cross-border business activities may benefit from the increased credibility and trust that certification can provide.
  • Privacy certification should be viewed not merely as a compliance tool, but as a strategic asset capable of creating competitive advantage.

Author: Panisa Suwanmatajarn, Managing Partner.

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PDPC Opens New Path for Intra-Group Cross-Border Data Transfers

The Personal Data Protection Committee (PDPC) has introduced a formal framework for the examination and certification of Binding Corporate Rules (BCRs), providing multinational corporate groups with a new mechanism to support cross-border transfers of personal data under Thailand’s Personal Data Protection Act B.E. 2562 (2019) (PDPA).

The Regulation on the Examination and Certification of Binding Corporate Rules was published in the Government Gazette on 17 February 2026 and became effective immediately. The regulation establishes a certification process through which multinational organizations may seek PDPC approval of BCRs as an appropriate safeguard for intra-group international data transfers.

The development represents a significant milestone in the evolution of Thailand’s cross-border data transfer regime and offers multinational businesses greater flexibility in managing global data flows.

Existing Cross-Border Transfer Framework:

Cross-border transfers of personal data under the PDPA are principally governed by Sections 28 and 29.

Section 28 generally requires that personal data transferred to another country or international organization be sent only to destinations that maintain adequate data protection standards as prescribed by the PDPC.

Where the destination jurisdiction has not been recognized as providing adequate protection, Section 29 permits transfers based on certain safeguards or exemptions. In practice, organizations have often relied on contractual arrangements, consent, or other statutory exceptions to facilitate international transfers.

While these mechanisms remain available, they may be difficult to implement across large multinational groups involving numerous entities and complex data processing activities.

The introduction of a formal BCR framework provides an additional compliance option specifically designed for multinational organizations that routinely transfer personal data among affiliated companies located in different jurisdictions.

What Are Binding Corporate Rules?

Binding Corporate Rules are legally enforceable internal rules adopted by a corporate group to govern the processing and transfer of personal data among group entities.

The purpose of BCRs is to establish a consistent and comprehensive privacy framework across all participating companies within the group, regardless of where those companies are located.

Typically, BCRs address matters such as:

  • Data protection principles and governance;
  • Data subject rights;
  • Security measures and incident management;
  • Accountability and compliance monitoring;
  • Internal complaint handling procedures;
  • Employee training and awareness programs; and
  • Mechanisms for enforcing compliance throughout the corporate group.

Once certified by the PDPC, BCRs may serve as a recognized safeguard for intra-group cross-border transfers of personal data, including transfers to jurisdictions that have not been designated as providing adequate protection under Thai law.

Key Features of the New Regulation:

The regulation establishes a formal process through which multinational corporate groups may apply for PDPC certification of their BCRs.

The framework contemplates separate certification mechanisms for:

  • BCRs applicable to data controllers; and
  • BCRs applicable to data processors.

Applicants must demonstrate that their BCRs contain adequate protections for personal data and create binding obligations that are enforceable throughout the corporate group.

The PDPC is authorized to review submitted documentation, request additional information, conduct assessments, and determine whether certification should be granted.

Certification is not merely a documentary exercise. Organizations will need to demonstrate that their privacy governance framework is operational, effective, and capable of ensuring compliance across all participating entities.

Why This Matters for Multinational Businesses:

The new framework is particularly relevant for organizations that centralize operations across multiple jurisdictions and routinely transfer personal data among affiliated entities.

Examples include:

  • Regional shared-service centers managing human resources, finance, compliance, procurement, or customer support functions;
  • Global cloud infrastructure and centralized IT operations;
  • Technology companies operating multinational development and support teams;
  • Organizations using centralized customer relationship management systems;
  • Financial institutions operating regional processing hubs; and
  • Businesses conducting cross-border analytics and artificial intelligence development activities.

For these organizations, maintaining individual contractual safeguards between every transferring and receiving entity can be administratively burdensome and difficult to scale.

A certified BCR framework may provide a more efficient and sustainable governance model by establishing a single set of group-wide privacy standards applicable across multiple jurisdictions and business functions.

Preparing for BCR Certification:

Organizations considering BCR certification should evaluate whether their existing privacy compliance framework is sufficiently mature to satisfy regulatory scrutiny.

Key areas likely to require attention include:

Governance Structure

Organizations should establish clear privacy governance arrangements, including defined responsibilities, reporting lines, and oversight mechanisms across the corporate group.

Data Subject Rights Management

Procedures should be implemented to ensure that individuals can effectively exercise their rights under the PDPA, regardless of which group entity is processing their personal data.

Cross-Border Transfer Controls

Companies should maintain accurate records of international data flows and implement controls governing transfers among participating entities.

Security and Incident Response

Appropriate technical and organizational security measures should be documented and consistently applied throughout the corporate group.

Monitoring and Auditing

Organizations should implement mechanisms to monitor compliance, conduct internal audits, and address identified deficiencies.

Training and Awareness

Regular employee training programs should be established to ensure that personnel understand and comply with the requirements of the BCR framework.

Alignment with Global Compliance Programs:

Many multinational organizations have already adopted BCRs or similar governance frameworks to comply with privacy laws in other jurisdictions.

For these organizations, the new regulation may provide an opportunity to leverage existing privacy governance structures while extending their applicability to Thailand-related data transfers.

However, organizations should not assume that existing frameworks will automatically satisfy the PDPC’s certification requirements. A careful review of the regulation and supporting documentation will be necessary to identify any jurisdiction-specific requirements.

Looking Ahead:

The introduction of the BCR certification regime demonstrates the continued development of Thailand’s data protection framework and reflects the increasing importance of international data flows in modern business operations.

As organizations continue to centralize functions, deploy cloud-based technologies, and expand artificial intelligence initiatives, the ability to move personal data across borders in a compliant and efficient manner will become increasingly important.

The availability of certified BCRs provides multinational groups with an additional tool for managing these transfers while maintaining consistent privacy standards across their global operations.

Key Takeaways:

  • The PDPC’s Regulation on the Examination and Certification of Binding Corporate Rules became effective on 17 February 2026.
  • The framework introduces a formal mechanism for certifying BCRs as a safeguard for intra-group cross-border transfers of personal data.
  • Certified BCRs may provide multinational corporate groups with a more scalable alternative to maintaining multiple contractual transfer arrangements.
  • The regime is particularly relevant for regional shared-service centers, cloud operations, multinational technology companies, and organizations conducting AI development activities.
  • Businesses considering certification should assess whether their privacy governance, security, accountability, and compliance frameworks are sufficiently mature to meet the PDPC’s requirements.

Author: Panisa Suwanmatajarn, Managing Partner.

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National Semiconductor Policy Committee Signals New Opportunities and Legal Considerations for High-Tech Investment

The Thai Government has recently emphasized the establishment of a National Semiconductor Policy Committee as a key mechanism to advance the country’s semiconductor ecosystem. The initiative reflects a broader industrial strategy aimed at positioning the country as a regional hub for advanced manufacturing and digital infrastructure, while supporting growth in artificial intelligence (AI), data centers, automation, electric vehicles (EVs), medical devices, and advanced electronics.

While further policy details and implementing measures are expected to emerge, the announcement sends an important signal to investors, technology companies, manufacturers, and research institutions regarding the Government’s long-term commitment to the semiconductor sector.

Strategic Importance of the Semiconductor Initiative:

Semiconductors are foundational technologies that support virtually all modern industries, from consumer electronics and telecommunications to automotive systems, healthcare technologies, and AI applications. As geopolitical tensions and supply-chain disruptions have prompted many countries to diversify semiconductor production and sourcing, governments across Asia have intensified efforts to attract semiconductor-related investments.

The establishment of a dedicated policy committee suggests that the Government intends to coordinate national efforts across multiple ministries and agencies, including investment promotion, infrastructure development, workforce training, research and development (R&D), and international partnerships.

The policy direction is also consistent with broader economic objectives aimed at moving up the value chain and attracting investments in high-value, technology-intensive industries.

Potential Impact on Investment Promotion:

One of the most immediate implications may involve the expansion or refinement of investment promotion measures administered by the Board of Investment (BOI).

Companies engaged in semiconductor manufacturing, integrated circuit design, wafer fabrication, assembly and testing, advanced packaging, electronic component production, and supporting services may benefit from enhanced incentives as the Government seeks to accelerate industry development.

Potential areas of focus may include:

  • Corporate income tax exemptions and reductions;
  • Import duty exemptions for machinery and raw materials;
  • Incentives for R&D activities;
  • Incentives linked to workforce development and technology transfer;
  • Facilitation of foreign investment and skilled personnel mobility; and
  • Support measures for strategic supply-chain investments.

Investors considering semiconductor-related projects should monitor future BOI announcements and sector-specific incentive packages that may emerge from the Committee’s policy recommendations.

Foreign Investment Structuring Considerations:

The semiconductor industry frequently involves cross-border investment structures, multinational operations, and strategic collaborations among technology developers, manufacturers, and research institutions.

Foreign investors entering the sector should carefully evaluate:

  • Foreign ownership restrictions under applicable laws;
  • BOI-promoted structures and associated privileges;
  • Land ownership and industrial estate considerations;
  • Cross-border service and licensing arrangements;
  • Transfer pricing implications; and
  • Regulatory approvals applicable to strategic technologies and infrastructure projects.

As semiconductor investments often involve significant capital expenditure and long-term commitments, early legal and regulatory planning will be critical to maximizing available incentives and ensuring compliance.

Technology Transfer and Intellectual Property Issues:

Technology transfer is expected to be a central component of any national semiconductor strategy.

Foreign technology providers and local partners will need to carefully structure arrangements relating to:

  • Patent licensing;
  • Trade secret protection;
  • Know-how transfer;
  • Joint development projects;
  • Employee invention ownership;
  • Confidentiality obligations; and
  • Post-termination use of technology.

Given the highly sensitive nature of semiconductor manufacturing processes and design technologies, robust intellectual property protection mechanisms will be essential. Companies should review existing IP portfolios and ensure that contractual arrangements clearly allocate ownership rights, usage rights, and commercialization rights.

Particular attention should be paid to the treatment of improvements and derivative technologies developed through local operations or collaborative R&D projects.

Growing Importance of Research and Development Collaboration:

The Government’s emphasis on workforce development and innovation suggests increased collaboration among industry participants, universities, research institutions, and public agencies.

Such collaborations may create opportunities for:

  • Joint R&D projects;
  • Government-supported innovation programs;
  • Academic-industry partnerships;
  • Research grants and funding mechanisms; and
  • Talent development initiatives.

However, collaborative arrangements often raise complex issues concerning intellectual property ownership, publication rights, confidentiality obligations, commercialization rights, and dispute resolution mechanisms.

Clear contractual frameworks should therefore be established at the outset of any collaborative project.

Supply Chain Compliance and Due Diligence:

As semiconductor supply chains become increasingly globalized and subject to heightened scrutiny, companies participating in the sector may face expanded compliance obligations.

Areas requiring attention may include:

  • Supply-chain transparency;
  • Export control regulations;
  • Sanctions compliance;
  • Cybersecurity requirements;
  • Data governance obligations;
  • ESG and sustainability standards; and
  • Supplier due diligence processes.

Businesses supplying multinational semiconductor manufacturers may encounter contractual requirements relating to responsible sourcing, cybersecurity controls, and environmental compliance.

Companies seeking integration into global semiconductor supply chains should assess whether their existing compliance programs meet the expectations of international customers and regulators.

Linkages with AI, Data Centers, EVs, and Advanced Electronics:

The Government has expressly linked semiconductor policy to broader strategic sectors including AI, data centers, automation, EVs, medical devices, and advanced electronics.

This interconnected approach may create opportunities beyond traditional semiconductor manufacturing. Companies involved in AI infrastructure, cloud computing, digital services, robotics, automotive electronics, battery technologies, and medical technology may also benefit indirectly from policies designed to strengthen the semiconductor ecosystem.

The result could be a more integrated technology cluster that attracts both upstream and downstream investment activities.

Looking Ahead:

The establishment of the National Semiconductor Policy Committee represents a significant policy signal regarding the Government’s industrial priorities and ambition to strengthen participation in global technology value chains.

While detailed implementation measures remain to be developed, the initiative is likely to influence future investment promotion policies, R&D support programs, infrastructure planning, workforce development initiatives, and international technology partnerships.

Businesses considering investments in semiconductor-related activities should closely monitor forthcoming regulatory developments and assess how evolving policies may affect their investment structures, intellectual property strategies, technology transfer arrangements, and compliance frameworks.

Key Takeaways:

  • Collaboration among industry, universities, and research institutions is likely to increase, making clear contractual allocation of intellectual property rights essential.
  • The National Semiconductor Policy Committee signals a coordinated national strategy to develop the semiconductor ecosystem and strengthen participation in global supply chains.
  • Semiconductor policy is expected to support broader growth in AI, data centers, EVs, medical devices, automation, and advanced electronics.
  • New or enhanced BOI incentives may emerge for semiconductor manufacturing, design, R&D, and supporting activities.
  • Foreign investors should review investment structures, regulatory requirements, and available promotion mechanisms at an early stage.
  • Technology transfer, trade secret protection, patent licensing, and ownership of R&D outcomes will become increasingly important legal considerations.
  • Companies seeking participation in semiconductor supply chains should strengthen compliance programs covering export controls, cybersecurity, ESG requirements, and supply-chain due diligence.

Author: Panisa Suwanmatajarn, Managing Partner.

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Consumer Protection: Proposed Lemon Law Strengthens Remedies for Defective Goods

The Cabinet has approved a draft Act on liability for defective products, commonly referred to as a “Lemon Law,” and submitted it for further legislative consideration. If enacted, the legislation would significantly strengthen the rights of purchasers and introduce a more structured legal framework for addressing defective products.

The proposed law represents a major development in consumer protection by providing clear remedies for defective goods and reducing the evidentiary burden traditionally borne by purchasers. The legislation is expected to affect a broad range of industries, including automotive, electronics, household appliances, and retail sectors.

Current Legal Framework:

Under the Civil and Commercial Code, purchasers are entitled to remedies where goods suffer from defects that impair their value, fitness for ordinary use, or intended purpose. However, in practice, purchasers often face difficulties proving that a defect existed at the time of delivery, particularly where technical evidence is required to establish the cause and timing of the defect.

As a result, claims relating to defective products can become lengthy, costly, and uncertain. The proposed Lemon Law seeks to address these challenges by establishing a dedicated statutory framework governing liability for defective products and providing purchasers with clearer and more effective remedies.

Reversal of the Burden of Proof:

One of the most significant features of the draft legislation is the introduction of a legal presumption regarding product defects.

Under the proposed framework, if a defect is discovered within a prescribed statutory period, the defect will be presumed to have existed at the time the product was delivered. The purchaser will therefore not be required to prove that the defect originated before delivery.

Instead, the burden shifts to the seller to demonstrate that the defect resulted from factors occurring after delivery, such as misuse, improper maintenance, unauthorized modification, or other circumstances attributable to the purchaser.

This reversal of the burden of proof is expected to significantly strengthen the position of purchasers and may increase the exposure of sellers, distributors, and manufacturers in product defect disputes.

Enhanced Remedies for Purchasers:

The proposed legislation establishes a range of remedies designed to ensure that purchasers receive meaningful and timely relief.

Depending on the nature and severity of the defect, purchasers may be entitled to:

  • require repair of the defective product;
  • request replacement with a new product;
  • obtain a reduction of the purchase price; or
  • terminate the contract and receive a refund.

The availability of a particular remedy will depend on factors such as the seriousness of the defect, whether the defect can be effectively repaired, and the period required to remedy the problem.

The framework is intended to prevent situations in which purchasers are subjected to repeated unsuccessful repair attempts without obtaining a satisfactory resolution.

Significant Implications for the Automotive Industry:

The automotive sector is expected to be among the industries most affected by the proposed legislation.

Under the draft law, purchasers of new vehicles may be entitled to replacement vehicles or contract termination where defects materially affect safety and cannot be adequately remedied. The bill also contemplates specific protection periods and mileage thresholds during which statutory remedies may be exercised.

Manufacturers, importers, and authorized dealers may therefore face increased obligations relating to warranty administration, technical investigations, repair procedures, and replacement programs.

The proposed legislation is likely to prompt a comprehensive review of warranty terms, after-sales service arrangements, and customer complaint handling procedures throughout the automotive industry.

Application to Consumer Products:

The proposed law extends well beyond motor vehicles.

Its scope includes electronic devices, household appliances, and other consumer products commonly purchased in the marketplace. Where significant defects are identified shortly after purchase, consumers may be entitled to seek replacement products or terminate the transaction without first undergoing prolonged repair procedures.

This expanded protection is expected to increase pressure on manufacturers, importers, distributors, and retailers to maintain robust quality-control systems and effective after-sales support.

Businesses may also need to reassess inventory management practices to ensure the availability of replacement products where required by law.

Potential Impact on Commercial Transactions:

A noteworthy aspect of the proposed legislation is its potential application beyond traditional consumer transactions.

Based on the current draft, certain protections may extend to business purchasers. If retained in the final legislation, this approach could have implications for supply agreements, distribution arrangements, procurement contracts, and other commercial transactions involving the sale of goods.

Businesses may therefore need to review contractual provisions relating to warranties, limitations of liability, indemnities, and recourse rights to ensure that risks are appropriately allocated throughout the supply chain.

Considerations for Finance and Leasing Providers:

The proposed legislation may also affect financing and hire-purchase arrangements involving defective goods.

Where a purchaser exercises statutory rights to replace a product or terminate a transaction due to serious defects, questions may arise regarding outstanding financing obligations and the allocation of liability among sellers, manufacturers, and finance providers.

Financial institutions should closely monitor the progress of the legislation and assess whether revisions to financing documentation and risk-management procedures may become necessary.

Legislative Outlook:

Although the Cabinet has approved the draft legislation, it has not yet become law. The bill must proceed through the legislative process, including consideration and approval by the House of Representatives and the Senate, before being published in the Government Gazette and entering into force.

As with many significant pieces of commercial and consumer protection legislation, the draft may be amended during parliamentary deliberations. Key provisions relating to the scope of covered products, available remedies, allocation of liability among sellers and manufacturers, and the treatment of business-to-business transactions may be subject to further debate and revision.

Accordingly, while the bill reflects a clear policy direction toward enhanced consumer protection, businesses should recognize that the legislative process may be lengthy. Depending on legislative priorities and the extent of amendments proposed during parliamentary consideration, it could take many months or even several years before the legislation is enacted and becomes fully effective.

Preparing for the New Regime:

Although the final form of the legislation remains uncertain, businesses should begin evaluating the potential operational and contractual implications.

Practical preparatory measures may include:

  • reviewing warranty and return policies;
  • assessing quality-control and product testing procedures;
  • strengthening customer complaint management systems;
  • reviewing supplier and distribution agreements;
  • evaluating indemnity and risk-allocation provisions; and
  • developing internal procedures for handling replacement, refund, and repair claims.

Early preparation may help businesses reduce legal and operational risks once the legislation comes into force.

Key Takeaways:

  • Businesses should review warranty policies, contractual arrangements, quality-control procedures, and complaint handling mechanisms in anticipation of the proposed new legal framework.
  • The Cabinet has approved a draft Lemon Law that would significantly strengthen protections for purchasers of defective products.
  • The proposed legislation introduces a presumption that certain defects discovered within specified periods existed at the time of delivery, shifting the burden of proof to sellers.
  • Purchasers may be entitled to repair, replacement, price reduction, or contract termination depending on the circumstances.
  • The automotive industry is expected to be particularly affected, especially in relation to serious safety-related defects in new vehicles.
  • The legislation extends beyond vehicles and is expected to cover electronic devices, household appliances, and other consumer products.
  • The bill may also affect commercial transactions, financing arrangements, and supply-chain risk allocation if its current scope is retained.
  • The legislation remains at the draft stage and may undergo significant revisions before enactment. The legislative process could take many months or even several years before the law becomes effective.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Launches THIM App to Streamline Arrivals for Foreign Travelers

Thailand’s Immigration Bureau is rolling out a new mobile application — THIM (Thailand Immigration Mobile Application) — that allows foreign nationals to register their arrival details prior to boarding their flight, with the aim of facilitating immigration procedures for entering and staying in Thailand.

Key Features

THIM offers a faster, more user-friendly alternative for travelers to submit arrival information. The registration process can typically be completed in under three minutes. The platform also supports group submissions, enabling information for up to 10 travelers to be entered and processed simultaneously — a feature that significantly reduces administrative burden for tour groups and families. Compared to the existing web-based system, which is often slower and less intuitive, THIM provides a considerably more convenient experience for inbound travelers.

What’s Next: THIM as a Super Application

Looking ahead, THIM is expected to evolve into a comprehensive “Super Application” serving all categories of foreign nationals in Thailand — including short-term visitors, long-term residents, and permanent residents. The platform will function as a one-stop service for immigration-related matters, enabling users to request official immigration documents, submit applications along with supporting materials, and communicate directly with immigration officers online. This digital-first approach is intended to reduce the need for in-person visits to Immigration Bureau offices.

Additional planned features include an appointment scheduling system to help minimize travel time and waiting periods, as well as an emergency assistance function that will allow registered users to contact the Tourist Police through the application around the clock, 24 hours a day, seven days a week.

Language Support

During the initial launch phase, THIM supports four languages: English, Russian, Japanese, and Chinese, reflecting Thailand’s largest inbound visitor demographics. Future updates are expected to extend language support to at least 15 additional languages to better accommodate travelers from a broader range of countries.

Availability and Current Status

THIM is currently available for download on both iOS and Android devices. At present, users can access the Thailand Digital Arrival Card (TDAC) registration system through the application. Additional features and services will be introduced in subsequent updates, with a full platform launch anticipated in August 2026.

Key Takeaways

THIM is available now on iOS and Android in a trial phase, with a full launch expected in August 2026.

Thailand’s Immigration Bureau is introducing THIM, a mobile application enabling foreign nationals to register arrival details before their flight.

Registration takes under three minutes, with support for group submissions of up to 10 travelers simultaneously.

Future plans include expanding THIM into a Super Application, incorporating document requests, visa applications, officer appointments, and 24/7 Tourist Police access.

The application currently supports four languages: English, Russian, Japanese, and Chinese.

Author: Panisa Suwanmatajarn, Managing Partner.

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Department of Intellectual Property Moves Toward AI-Enabled Examination and OECD-Aligned Governance Standards

Recent developments signal a significant shift in the modernization of intellectual property administration, with authorities introducing artificial intelligence (AI) – assisted examination tools, enhanced anti-corruption mechanisms, and governance reforms designed to improve transparency and efficiency. These initiatives reflect broader efforts to strengthen institutional integrity and align administrative practices with international standards associated with the Organization for Economic Co-operation and Development (OECD).

The measures are particularly relevant for businesses, innovators, and intellectual property rights holders, as they may influence the way trademark and patent applications are processed, how enforcement priorities evolve, and how emerging legal questions surrounding AI and intellectual property are addressed.

Governance and transparency reforms:

Transparency and accountability have become increasingly important considerations in public administration, particularly in areas where significant economic interests are involved. Intellectual property registration systems are especially vulnerable to concerns regarding administrative discretion because examination outcomes can have substantial commercial consequences.

To address these concerns, new initiatives have been introduced to strengthen anti-corruption safeguards and improve stakeholder confidence in the intellectual property system. These include increased engagement with private-sector stakeholders and the development of a dedicated Sandbox mechanism intended to serve as a centralized platform for receiving and monitoring complaints relating to alleged misconduct or corruption in administrative processes.

The proposed Sandbox framework appears intended not only to facilitate reporting but also to improve transparency in complaint handling and case monitoring. If implemented effectively, such a mechanism could provide greater visibility into administrative processes while helping identify systemic risks that may affect applicants and rights holders.

The reforms are consistent with international trends emphasizing integrity, accountability, and transparency within public institutions. They also reflect increasing recognition that the effectiveness of an intellectual property system depends not only on substantive legal protections but also on the credibility and predictability of administrative decision-making.

Expanding the use of AI in trademark examination:

One of the most notable developments is the growing use of AI technologies to support trademark examination functions. Authorities have introduced AI-powered image search capabilities that allow preliminary identification of potentially similar or conflicting trademarks before applications are filed.

For applicants, such tools may reduce the risk of filing marks that are likely to face objections based on similarity to existing registrations. Early identification of potential conflicts can help businesses refine branding strategies, reduce unnecessary filing costs, and improve the overall quality of applications submitted for examination.

From a regulatory perspective, AI-assisted searching may also contribute to greater consistency in examination outcomes. Similarity assessments often involve complex factual evaluations, and AI tools may help examiners identify relevant precedents and potentially conflicting marks more efficiently.

Nevertheless, AI-assisted examination does not alter the legal standards governing trademark registration. Questions concerning distinctiveness, likelihood of confusion, descriptiveness, and other statutory requirements remain subject to legal analysis and human review.

AI-assisted patent examination and prior-art searches:

Authorities have also expanded the use of AI technologies in patent examination processes. AI systems are being used to assist with prior-art searches and preliminary analysis of information obtained from international patent databases. These tools can support examiners in evaluating novelty and other patentability requirements by identifying potentially relevant references more efficiently than traditional search methods.

The introduction of AI-assisted patent examination reflects a broader global trend. Patent offices worldwide are increasingly exploring the use of machine learning and data analytics to manage growing application volumes, improve search capabilities, and reduce examination backlogs.

For applicants, improved search efficiency may ultimately contribute to more predictable examination outcomes and potentially shorter processing times. However, the quality of applications remains a critical factor. Authorities have identified deficiencies in patent drafting and claim preparation as continuing challenges, particularly among first-time applicants and smaller enterprises. Poorly drafted applications often require multiple rounds of amendment, increasing both costs and examination timelines.

As a result, businesses seeking patent protection should continue to prioritize high-quality patent drafting and strategic portfolio management despite the increasing availability of AI-assisted examination tools.

Reducing administrative discretion through digitalization:

The modernization effort extends beyond AI. Authorities have continued expanding digital service platforms, including electronic filing systems, online consultations, and electronic payment mechanisms. These initiatives are intended to reduce face-to-face interactions between applicants and officials while improving traceability throughout the application process.

Reducing direct interactions may help mitigate corruption risks and strengthen public confidence in administrative processes. Digital records also create auditable trails that can assist in internal oversight and compliance monitoring.

The increasing integration of digital technologies into intellectual property administration is consistent with broader government efforts to improve service delivery and enhance regulatory efficiency through digital transformation.

AI and copyright: maintaining a cautious approach

The relationship between AI and copyright remains one of the most closely watched issues in intellectual property law globally. While several jurisdictions are considering or implementing exceptions that permit text and data mining for AI training purposes, authorities have signaled a cautious approach that prioritizes the interests of creators and copyright owners.

Current copyright protection remains focused on works created by human authors. Authorities have also emphasized that the use of copyrighted materials for AI training should be subject to appropriate authorization and should strike a balance between technological innovation and the protection of creative industries.

Notably, there are currently no plans to introduce broad copyright exceptions specifically designed to facilitate AI training. This position contrasts with approaches under consideration in some other jurisdictions and suggests that rights holders may continue to enjoy relatively strong protections against unauthorized use of copyrighted materials in AI development.

For technology companies, AI developers, and businesses deploying generative AI systems, this means that copyright clearance strategies and licensing arrangements may remain important risk-management tools.

Growing enforcement challenges in the digital environment:

The rapid growth of online commerce has transformed the intellectual property enforcement landscape. Although overall infringement cases have reportedly declined, online infringement cases have increased dramatically, with authorities reporting a 286 percent increase in online-related violations.

This trend reflects the migration of counterfeit and infringing activities from physical marketplaces to digital platforms. In response, authorities have expanded cooperation with law enforcement agencies and major e-commerce platforms to facilitate enforcement actions against large-scale online infringers and improve mechanisms for removing infringing content and products.

Businesses should expect online enforcement to remain a significant regulatory priority. Rights holders may benefit from enhanced cooperation between government agencies and digital platforms, but they should also continue implementing proactive monitoring and enforcement strategies to identify and address online infringements promptly.

Looking ahead:

The combination of AI-assisted examination, digital transformation, governance reforms, and increased attention to online enforcement suggests that intellectual property administration is entering a new phase of modernization. While many of the announced initiatives remain at an early stage, they indicate a clear policy direction toward greater efficiency, transparency, and technological integration.

For businesses and rights holders, these developments may create opportunities for more predictable and streamlined administrative processes. At the same time, evolving approaches to AI, copyright, and digital enforcement will require continued monitoring as policymakers seek to balance innovation, economic competitiveness, and intellectual property protection.

Key Takeaways:

  • Businesses should expect continued digitalization of intellectual property services, including electronic filing, online consultations, and technology-assisted examination processes.
  • Authorities are expanding the use of AI-assisted tools in trademark and patent examination as part of broader efforts to modernize intellectual property administration.
  • AI is intended to support examination functions rather than replace human decision-making, with final determinations remaining subject to applicable legal requirements and expert review.
  • A proposed corruption-reporting Sandbox and related governance initiatives demonstrate increased emphasis on transparency, accountability, and OECD-aligned institutional standards.

Author: Panisa Suwanmatajarn, Managing Partner.

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