Tag: Digital Platform

on by

Thailand New Draft Digital Platform Economy Act

The outbreak of the COVID-19 pandemic has significantly altered consumer behavior, leading to a surge in reliance on digital platforms for activities like shopping and food delivery. This shift has played a pivotal role in the rapid growth of the digital economy, both in Thailand and globally. Citizens have become increasingly dependent on these platforms, which offer convenience and ease in daily life. As digital platforms now cover almost every facet of modern existence, the government has recognized the need to regulate these services to ensure economic and social stability, enhance credibility, and mitigate any potential risks to the public at large.

In response to this, Thailand initially enacted the Royal Decree on the Operation of Digital Platform Service Business Subject to Prior Notification B.E. 2565 (2022) (“Royal Decree”), which regulates and imposes obligations on digital platform service operators. These operators, such as Shopee or Lazada, manage platforms that connect business users and consumers through data networks to facilitate electronic transactions. However, recognizing the evolving landscape, the Ministry of Digital Economy and Society (“MDES“) has proposed the Draft Digital Platform Economy Act B.E. …. (the “Draft Bill”), which aims to expand regulation to include a broader range of platform services not covered under the Royal Decree, also known as, digital media services.

The Draft Bill seeks to regulate various digital platform services more comprehensively, promoting fair trade, encouraging self-regulation, and supporting operators in adopting good governance principles. Below are the key aspects of the Draft Bill.

Categorization of Digital Media Services

The Draft Bill defines Digital Media Services as any service provided over a computer network, internet system, or telecommunications network that acts as a medium between the sender and the data receiver. It categorizes these services into three types, each with distinct legal responsibilities for the operators:

  1. Mere Conduit Service: This refers to the provision of electronic data transmission services or access to an electronic communications network. Mere conduit providers are not liable for illegal activities during data transmission, as long as they can prove they neither initiated the data nor altered it in any way.
  2. Caching Service: Caching services involve temporary data storage for faster transmission. Providers are not held responsible for illegal activities, provided they meet the terms for data access and follow standard industry practices.
  3. Hosting Service: Hosting services provide data storage on behalf of users. These providers are only held accountable if they are aware of illegal content stored and fail to take action by either removing or blocking access to it.

General Obligations for Digital Media Services Platform Operators

Under the Draft Bill, platform operators are required to comply with obligations prescribed in Chapter 3 of the Draft Bill, which includes notifying the users of their rights and obligations, as well as the risks associated with using digital media services; providing a complaint resolution channel that responds within 24 hours and reports on the investigation outcome within 60 days; disclosing advertising information, publishing clear terms and conditions, as mandated by the law, and appointing a point of contact to liaise with the Electronic Transactions Development Agency (“ETDA“).

Very Large Online Platform (VLOP)

The Draft Bill introduces the concept of Very Large Online Platforms (“VLOP“). To qualify as a VLOP, a platform must meet one of the following criteria:

  1. A net income (before expenses) of over 1,000 million Baht per year from the provision of services in Thailand.
  2. More than 6 million active users per month.
  3. Poses a high risk to the economic or social security of Thailand, as determined by the ETDA.

VLOPs are subject to additional obligations, such as reporting data to the ETDA, tracking business users’ activities, suspending services for users engaged in serious illegal activities, and submitting annual transparency reports.

Core Platform Services & Gatekeepers

Chapter 5 of the Draft Bill defines core platform services and identifies platform operators that act as “gatekeepers” to other service providers. Core platform services currently include 10 types of digital media services such as online search engines, video-sharing services, cloud computing, and online advertising services, among others. A platform operator may be classified as a gatekeeper if it meets three criteria:

  1. Significant impact on the economy, with annual income (before expenses) exceeding 7 billion Baht.
  2. Serves as a critical gateway for business users to reach end users, with more than 15 million consumer users and 10,000 business users annually.
  3. Has the power to limit competition from other platform service providers, maintaining a dominant position.

Gatekeepers are subject to additional responsibilities, such as ensuring fair treatment of business users, facilitating free communication between consumers and businesses, preventing unfair practices that hinder competition, and more.

ETDA and Digital Platform Economy Committee’s Power to Enforce Data Platform’s Compliance

In order to enforce the Draft Bill effectively, the Draft Bill grants ETDA various powers to enforce compliance, including but not limited to the power to request data from platform operators to assess compliance, power to access and inspect platforms’ computer systems and physical premises if there is reasonable suspicion of illegal activities, the power to impose fines, service suspensions, or even criminal charges for severe violations.

Regulatory Transition

To ensure a smooth transition in the enforcement of this Draft Bill from the existing Royal Decree, the Draft Bill includes a grandfather clause allowing the platform operators who have already submitted notification under the Royal Decree to be deemed to have been notified under this Draft Bill as well. Nonetheless, they are required to update their information to align with the new requirement within 120 days of its enactment. Whilst the Royal Decree shall cease to be effective on the enforcement date of this Draft Bill, the sub-ordinate regulations issued under the Royal Decree shall remain in effect for as long as they do not conflict with the Draft Bill, or the new-subordinate regulation to be issued under the Draft Bill. 

Conclusion

The Draft Bill represents a proactive step toward regulating the rapidly expanding digital economy in Thailand. By establishing clear guidelines for digital platform operators, categorizing services, and introducing additional obligations for large and influential platforms, the Draft Bill aims to foster fair competition, ensure consumer protection, and maintain economic stability. As digital platforms continue to play an integral role in modern society, this legislation will be crucial in balancing innovation with accountability, ensuring that the digital economy can thrive in a secure and sustainable manner. As such, the passage of the Draft Bill will likely have far-reaching implications, not only for platform operators but also for the broader economy and society.

Source: International Business April 2025 : Antea

Read Full Article

on by

BOI Launches New Measures to Boost Affordable Housing Investment

BOI Launches New Measures to Boost Affordable Housing Investment

The Board of Investment (BOI) has unveiled special new measures aimed at stimulating investment in residential housing projects priced at 1.5 million baht or less. This initiative is part of a collaborative effort with the Government Housing Bank to expand homeownership opportunities for low-income Thai families.

Under the new promotion, property developers can apply for BOI investment incentives to construct housing projects capped at 1.5 million baht per unit. The Government Housing Bank will evaluate and certify qualifying developers, who can then submit applications for BOI promotion by the end of 2025.

“Affordable housing is a national priority to ensure all Thai citizens can realize the dream of home ownership,” said BOI Secretary General. “These new measures provide tax incentives to developers to increase the supply of moderately priced housing stock.”

low angle photography of white and purple concrete building

To be eligible, residential projects must meet specific criteria set by the Government Housing Bank:

  • For condominiums, a usable area must be at least 24 sq.m. per unit
  • For townhouses/detached homes, the usable area must be at least 70 sq.m.
  • Projects must include amenities like parking, security, cleaning services, and common areas

Developers must first obtain construction permits and Government Housing Bank certification before applying to the BOI for promotion privileges.

Once approved, developers will receive corporate income tax exemption for 3 years capped at their total investment amount. Only construction costs for utilities, roads, and public amenities within the project qualify for the tax break.

aerial view of buildigns

“The high costs of land and construction make it very difficult for developers to profitably build housing below 1.5 million baht,” noted BOI Secretary General. “This incentive helps make those moderately-priced projects financially viable.”

The Government Housing Bank has already opened an online application portal at www.ghbank.co.th for developers seeking certification to apply for BOI promotion.

Both the BOI and Government Housing Bank see this joint investment promotion as critically enhancing residential options for lower-income Thai families striving for home ownership.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

NCSA Tackles Cloud Security with New Measures

The National Cyber Security Agency (NCSA) has recognized the growing reliance on cloud services by both government agencies and private sectors, along with the increasing number of cyberattacks targeting users. In response, the agency has drafted the Notification on Cloud System Cyber Security Standard (“Notification“), aiming to establish a robust standard of security measures for cloud systems.

Applicable Entities and Scope: The draft Notification is applicable to government agencies, supervising or regulating organizations, and organizations of critical information infrastructure (as defined under the Cybersecurity Act B.E. 2562 (2019)) that utilize cloud services and have official contracts with Cloud Service Providers (CSPs). These entities are collectively referred to as Cloud Service Customers (CSCs).

Risk Assessment and Categorization: According to the draft Notification, the risks associated with cloud system usage can originate from either the CSC or the CSP. Despite the fact that the draft Notification’s applicability is extended to only the CSCs, the CSPs are to be bound by its service agreement with CSCs to comply with the requirements of the draft Notification as well. CSCs and CSPs are mandated to assess the level of risk in accordance with the security objectives prescribed by another NCSA’s notification. The risk levels are categorized as low, moderate, and high, each with different minimum requirements for security standards, CSC and CSP assessments, and certifications.

green and white line illustration

Minimum Requirements: The minimum requirements for cloud security depend on the assessed risk level and the related security objectives. These requirements may encompass various aspects, including:

  1. Cloud security governance, encompassing information security policies, organization of information security, supplier relationships, and compliance with rules and regulations.
  2. Cloud infrastructure security and operations, covering human resources security, asset management, access control, cryptography, physical and environmental security, operations security, communication security, system acquisition, development and maintenance, supplier relationships, and information security incident management.

Assessment and Certification: Depending on the risk level and the related security objectives, CSCs or CSPs may be required to conduct compliance assessments as follows:

  1. Self-assessment, conducted in accordance with NCSA’s prescribed requirements.
  2. Assessment by a regulator or regulatory agency (attestation).
  3. Assessment by an advanced certified body.

The frequency of assessments and certifications will also depend on the assessed risk level.

The draft Notification provides greater details, and CSPs and CSCs subject to its provisions are required to carefully assess their associated risks and obligations.

Conclusion: The NCSA’s draft Notification aims to establish a comprehensive framework for ensuring the security of cloud systems used by government agencies, regulatory bodies, and critical infrastructure organizations. By introducing risk-based minimum requirements, assessments, and certifications, the agency seeks to address the growing cybersecurity threats and enhance the overall resilience of cloud services within the country.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

The Digital Leap for Ease of Doing Business in Thailand

In a significant move to enhance the ease of doing business in Thailand, a joint collaboration between government agencies and private sector organizations was unveiled. The Thai Chamber of Commerce, the Board of Trade of Thailand, the Office of the Public Sector Development Commission (OPDC), and the Department of Business Development (DBD) took the stage to announce the “Joint Corporate Data Linkage” initiative.

This groundbreaking project aims to revolutionize the way businesses interact with government entities by eliminating the need for physical document submissions, such as copies of national ID cards, house registration documents, and company affidavits. Through an online system, legal entity information will be seamlessly linked and shared among participating agencies, reducing redundancies and streamlining processes.

The Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand emphasized the importance of efficient government services in enhancing the country’s competitiveness. “For too long, entrepreneurs have been burdened with the task of submitting countless documents for various proceedings,” the Chairman stated. “This initiative marks a significant step forward in leveraging digital technology to alleviate those burdens and foster a more business-friendly environment.”

gray concrete buildings

The Joint Corporate Data Linkage is the culmination of years of legal and technological advancements, including the Licensing Facilitation Act B.E. 2558 (2015), the Digitalization of Public Administration and Services Delivery Act B.E. 2562 (2019), and the Act on Management of State Affairs by Electronic Means B.E. 2565 (2022). These legislative efforts have paved the way for a seamless integration of government services into the digital age.

Initially, ten government agencies have pledged their commitment to this initiative, including the Food and Drug Administration (FDA), the Department of Lands (DOL), the Treasury Department, the Board of Investment of Thailand (BOI), the Department of Industrial Works (DIW), the Excise Department, the Bank of Thailand (BOT), the Thai Customs Department, the Comptroller General’s Department, and the Revenue Department (RD).

The Secretary-General of the OPDC highlighted the significance of this collaboration, stating, “The OPDC recognizes the importance of harnessing digital technologies to enhance the efficiency of government services. By fostering cooperation between public and private entities, we aim to provide convenient, cost-effective, and inclusive services to businesses and citizens alike.”

The benefits of the Joint Corporate Data Linkage are multifaceted. According to projections, the initiative is expected to reduce up to 392 document retrieval procedures, resulting in substantial cost savings of approximately 800 Thai Baht per transaction. This translates into an estimated annual saving of around 7 billion Baht, factoring in time, document usage, accounting costs, and opportunity costs.

group of people photo
Photo by Helena Lopes on Pexels.com

The Director-General of the DBD underscored the technological advancements underpinning this endeavor. “We have developed a robust system that enables real-time, accurate, and secure data exchange between agencies,” the Director-General explained. “By leveraging the Central Data Exchange system (GDX), we can ensure efficient and seamless information flow, further enhancing the overall experience for businesses.”

The Joint Corporate Data Linkage is not only a testament to Thailand’s commitment to digital transformation but also a beacon of opportunity for investors. As the system matures and expands, investors may find lucrative opportunities in public-private partnerships, collaborating with government agencies to further develop and enhance the platform, potentially yielding long-term returns on investment.

With the formal commencement of the Joint Corporate Data Linkage on May 1st, 2024, Thailand takes a significant stride towards a future where doing business is streamlined, efficient, and aligned with the digital era. This initiative sets the stage for continued innovation and collaboration between the public and private sectors, positioning Thailand as a frontrunner in the global race for competitiveness and business-friendly practices.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

BOI’s Tax Relief Sparks Housing Accessibility

The Office of the Board of Investment (BOI) has declared tax incentives for property developers engaged in the construction of residential properties, including houses and condominiums, aimed at catering to low-income individuals. These incentives are applicable to properties priced at 1.5 million THB or below.

The privileges were approved by the Board of Investment on March 15th, 2024, in accordance with the third phase of the Government Housing Bank (GHB)’s initiative to extend loans to low-income individuals for the acquisition of houses and condominium units and consistent with the government’s economic stimulus measure through the real estate sector.

person pointing on the screen of a laptop

Projects meeting the eligibility criteria, which include a minimum requirement of 70 square meters of space for housing projects and at least 24 square meters of condominium space floor, will qualify for a three-year exemption from corporate income tax. This exemption applies to and shall not exceed the investment costs associated with infrastructure development such as roads, public facilities, and amenities for public use within the projects.

By extending tax privileges to developers constructing residential properties priced at 1.5 million THB or below, the BOI aims to stimulate the supply of affordable housing options and enhance accessibility for low-income segments of the population. Importantly, this initiative promotes social welfare of low-income populations and stimulate inclusive economic development in the real estate sector.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand’s BOI Incentives: Driving Business Competitiveness

Thailand’s Board of Investment (BOI) has introduced targeted incentives aimed at boosting the competitiveness of eligible businesses across various sectors in the local market. Here is a breakdown of the key programs and their benefits:

  • Upgrading Automotive Industry (BOI’s Notification No. 2/2566)

Existing BOI-promoted automotive projects can reapply for a 3-year corporate tax exemption if their previous benefits have expired. They must invest at least 1 million THB in automation and robotics manufacturers (excluding land and working capital). The new investment project must support the domestic industry by 30% of the total automation system and robotics value to qualify for a 3-year corporate income tax exemption.

  • Community and Social Development (BOI’s Notification No. 1/2567)

Active projects and new investment projects must have a minimum capital investment of 5 million THB (excluding land and working capital costs). Additionally, they must invest a minimum of 500,000 THB in supporting local organizations, such as social enterprises and unions, to qualify for a 3-year corporate income tax exemption.

  • Retention and Expansion Program (BOI’s Notification No. 2/2567)

Businesses with a long-standing presence of not less than 15 years and a significant investment history of not less than 10,000 million THB from at least 3 projects can get benefit from this program. Expansion projects with an investment value of at least 500 million THB (excluding land and working capital costs), will receive corporate income tax exemptions of 3 up to 13 years depending on the business’s category. The range of tax exemptions varies depending on the businesses categorized by the BOI office.

person in welding mask while welding a metal bar
  • Comprehensive Relocation Program  (BOI’s Notification No. 3/2567)

To encourage foreign investors in relocating integrated businesses, including manufacturing facilities, regional headquarters, and research and development centers, new investments that are eligible to receive BOI incentives of 3 up to 8 years of corporate income tax exemption under this promotion must submit manufacturing projects applications for investment promotion of the International Business Center (IBC) and an applicant must undertake the substantial functions of regional headquarters and/or R&D centers as indicated.

  • Economic Recovery  (BOI’s Notification No. 4/2567)

The activities categorized in group A such as businesses related to public utilities or the automotive industry are entitled to receive corporate income tax exemption not exceeding 8 years with the additional rights and benefits of 50% reduction from the standard corporate income tax rate applies to net profits derived from the investment for a duration of 5 years after the expiration of the corporate income tax exemption.  

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

BOI’s Vision: Thailand as a World-Class Events Hub and Electronics Powerhouse

Thailand Board of Investment (“BOI”) is committed to positioning Thailand as a hub for organizing events and electronics powerhouse under significant measures in place which are: 1) promoting investment in events such as music festivals, sports, and international festivals, and 2) promoting investment in Printed Circuit Board (“PCB”) businesses.

  1. Promoting investment in events such as music festivals, sports, and international festivals

To recover the country’s tourism and entertainment sectors from the COVID-19 crisis, BOI grants incentives to attract world-class events by offering benefits to organizers of large international concerts, sporting events, and festivals with investments or expenses not less than THB 100 million (approximately USD 2.8 million). These benefits include exemptions from import duties on equipment to be used in such an event and easing the process of obtaining a visa and work permit for the foreign staffs.

  • Promoting investment in businesses related to Printed Circuit Board (“PCB”) businesses

Thailand Board of Investment has endorsed incentives to boost foreign investment for three supply chain sectors related to PCB businesses as follows:

  • Businesses involved in supporting PCB production processes such as lamination, drilling, plating, and routing;
    • Key manufacturers for PCB production, including flexible CCL (FCCL), copper-clad laminate (CCL), and prepreg; and
    • Producers of essential materials and supplies for PCB manufacturing businesses such as dry film, transfer film, and backup boards.

These supply chain sectors for PCB businesses will be eligible for exemptions on import duties for raw materials and machinery used in product exportation. Additionally, they may qualify for corporate tax exemptions for up to 8 years, based significantly on the materials, technology, and investment scale.

These measures cover a wide range of PCB-related businesses, including producers of PCB components and manufacturers of raw materials, and aim to enhance Thailand’s competitiveness in the electronics manufacturing sectors, the entertainment sectors, and the event industry sectors which in correspond with the Cabinet’s vision – Ignite Thailand – to elevate Thailand into a global hub for major events, aiming to attract the tourists from around the world. These incentives have been granted to those events and PCB related businesses by the BOI since 28 March 2024, enabling the BOI to promote the aforementioned businesses in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand’s e-Workforce Ecosystem Platform: Empowering the Digital Workforce for Industry 4.0

Thailand’s e-Workforce Ecosystem Platform: Empowering the Digital Workforce for Industry 4.0

As Thailand embarks on its ambitious journey towards becoming an innovation-driven economy under the Thailand 4.0 policy, the development of a skilled digital workforce has emerged as a critical priority. To address this challenge, the Ministry of Digital Economy and Society (MDES) has spearheaded the establishment of the e-Workforce Ecosystem Platform (EWE Platform), a comprehensive initiative aimed at building and strengthening the country’s digital talent pool.

The EWE Platform serves as a central hub for skill development, job matching, upskilling, and reskilling programs, catering to the evolving needs of the digital age. Its primary objectives include equipping Thai workers with the necessary digital competencies, facilitating the efficient allocation of skilled talents, and fostering a collaborative ecosystem among various stakeholders.

At the core of the platform lies a robust training infrastructure that offers a wide range of online courses, workshops, and resources focused on high-demand digital skills. These include areas such as data analytics, cybersecurity, cloud computing, and programming, enabling workers to acquire the knowledge and expertise required to thrive in the Industry 4.0 era. Furthermore, the EWE Platform serves as a job-matching marketplace, connecting skilled workers with employers seeking digital talents. This function not only assists companies in fulfilling their talent requirements but also provides opportunities for skilled individuals to find suitable employment opportunities aligned with their expertise. Recognizing the rapidly changing job market landscape, the platform also offers upskilling and reskilling programs, empowering existing workers to adapt and acquire new skills in response to evolving industry demands. This proactive approach ensures that Thailand’s workforce remains agile and competitive in the face of technological disruptions.

Underpinning the EWE Platform is a collaborative ecosystem that brings together various stakeholders, including educational institutions, training providers, government agencies, and private companies. This synergistic approach fosters knowledge sharing, resource optimization, and the development of comprehensive talent development strategies. Moreover, the platform facilitates talent mobility, enabling skilled workers to move across different industries and regions within Thailand and ensuring efficient distribution and utilization of digital talents throughout the country.

To expand the EWE Platform’s reach and impact, The MDES has appointed the Thailand Professional Qualification Institute (TPQI) to oversee national reform activities affecting the country’s integrated workforce management system. The reform plan for culture, sports, labor, and human resource development suggests linking government agencies’ online and offline training curriculums and workforce information to the platform system, allowing officers from all agencies to register on the platform.

monochrome photo of triangle shape digital wallpaper

Target individuals, students, job seekers, freelancers, retired seniors, vulnerable citizens, employers, and government agencies can now benefit from the EWE Platform through the official website of TPQI, which connects workforce data from each agency into big data and creates six key features: a digital competency credit bank to gather knowledge and work experiences; career guidance and skill check to assess users’ skills; an e-coupon to support those in need of upskilling, reskilling, or creating new skills through digital wallet (Paotang); an e-portfolio to record experiences; job matching to connect employers and skilled workers; and labor market data for planning workforce policy for future national improvement.

As the driving force behind this ambitious initiative, the MDES has undertaken a multifaceted role, encompassing policy formulation, funding allocation, stakeholder collaboration, promotion, and performance monitoring. The ministry’s unwavering commitment to developing a future-ready workforce underscores the critical importance of human capital in realizing Thailand’s aspirations of becoming an innovation-driven economy.

The EWE Platform represents a significant step toward preparing Thailand’s workforce for the challenges and opportunities of the digital age. By fostering a skilled and adaptable digital talent pool, this initiative not only supports the adoption of Industry 4.0 technologies but also positions Thailand as a competitive player in the global digital economy.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles