Tag: Digital

on by

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

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

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

Overview of the Cloud-First Policy and Guidelines:

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

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

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

Effects of the Policy Implementation:

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

  • Enhanced Efficiency and Service Delivery

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

  • Cost Savings and Resource Optimization

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

  • Improved Security and Data Sovereignty

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

  • Economic and Societal Impacts

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

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

Addressing Potential Concerns and Global Precedents:

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

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

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

photo of a satellite dish

Preparations for Cloud Providers:

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

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

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

Conclusion:

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

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

Key Takeaways:

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

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

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

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

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

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

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

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

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

Introduction:

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

Purpose of the Guidelines:

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

Categories of Anti-Competitive Conduct:

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

stock exchange board
Photo by Pixabay on Pexels.com

1. Price-Related Conduct:

The following practices are highlighted as potentially anti-competitive:

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

2. Non-Price-Related Conduct:

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

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

Stakeholders Impacted:

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

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

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

Conclusion:

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

Key Takeaways:

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

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

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

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

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

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

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

National Data Strategy:

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

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

National Artificial Intelligence Committee:

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

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

Smart City Development:

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

man standing on stairs

Public Internet Network Expansion:

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

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

Economic and Social Impacts:

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

Key Takeaways:

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

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Amendments to Thailand’s Act on National Competitive Enhancement: Aligning with OECD’s Global Minimum Tax

Background

The Act on National Competitive Enhancement for Targeted Industries B.E. 2560 (A.D. 2017) (the “Act“) was published in the Royal Gazette and became effective on 14 February 2017. The Act’s primary objective is to promote investment in targeted industries and enhance Thailand’s national competitiveness, with the overarching goal of transitioning the country beyond middle-income status. Under the Act, eligible targeted industries must either be newly introduced to Thailand or utilize new technologies or advanced production processes that contribute to the development and promotion of innovation.

Purpose of the Amendment

The Thai government has recently announced its intention to amend the Act to align the country’s legislative framework with the tax policy principles established by the Organization for Economic Co-operation and Development (OECD). In this regard, a draft Royal Decree has been issued to amend the Act on National Competitive Enhancement for Targeted Industries (No. …), B.E. …. (the “Draft Act“).

The proposed amendments aim to align Thailand’s legal framework with international tax standards in the digital economy, particularly those developed under the OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two initiative—commonly referred to as the Global Minimum Tax (GMT).

Under BEPS 2.0 Pillar Two, multinational enterprise (MNE) groups with consolidated annual revenues of at least EUR 750 million (approximately THB 28 billion) are subject to a minimum effective tax rate (ETR) of 15% on their profits in each jurisdiction. If a subsidiary in any given jurisdiction is subject to an ETR below this threshold, a top-up tax may be levied by the jurisdiction of the ultimate parent entity or another qualifying group entity, pursuant to the OECD’s Model Rules.

In response to these global developments, Thailand is recalibrating its investment incentives regime to ensure continued competitiveness while maintaining compliance with emerging international tax obligations.

intermodal container stacked on port

Key Proposed Amendments

The key proposed amendments include:

  1. Granting of Tax Credit Rights and Benefits – Definitions are introduced for “Tax Credit,” “Remaining Tax Credit,” and “Tax Credit Refund.” The proposed amendments allow promoted entities to utilize tax credits instead of direct tax payments.
  2. Refund of Remaining Tax Credits – The Policy Commission may consider granting refunds for unused tax credits to promoted entities, subject to the availability of funds and limited to the remaining tax credit balance.
  3. Revocation of Tax Credit Rights and Benefits – If the Policy Commission revokes a promoted entity’s tax credit rights and benefits, the entity will forfeit all entitlement to tax credits for the relevant accounting period. Applicable tax laws will then be enforced accordingly.
  4. Inter-Agency Data Coordination – For purposes of investment promotion and evaluation, the Board of Investment (BOI) may request relevant tax collection data from the Ministry of Finance.
  5. Transitional Provision – If deemed necessary, the Policy Commission may authorize the retroactive application of tax credit rights and benefits to qualifying investments or expenditures incurred from 1 January 2025.

Current Status

The BOI serves as the principal agency responsible for the proposed legislative amendments, which are currently subject to a public consultation process taking place from 4 July to 18 July 2025.

Given the significant impact of tax credit utilization on government revenue and its relevance to the public interest, it is essential that the granting and use of tax incentives strictly adhere to the policies established by the National Policy Commission. Regulation through a structured permit or licensing system is necessary to maximize national development benefits, particularly in research and development (R&D), innovation, and the development of specialized talent in targeted industries.

Conclusion

Thailand’s adoption of the OECD’s GMT framework through the proposed legislative amendments underscores the country’s commitment to international tax cooperation while preserving its appeal as an investment destination. The introduction of the Qualified Refundable Tax Credit (QRTC) mechanism represents a strategic effort to foster innovation-led growth and align tax incentives with national economic and industrial priorities.

These reforms reflect Thailand’s broader objective of establishing itself as a regional hub for high-value, innovation-driven industries and as a responsible leader in economic development. The Draft Act is currently subject to a public hearing process, the outcome of which will be instrumental in determining the final shape of the legislation. As Thailand progresses toward implementation, sustained policy oversight and active engagement with stakeholders will be critical to ensuring the success and effectiveness of this landmark tax reform.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand’s BOI 2025: Driving Sustainability and Local Content in EVs and Industry through Strategic Incentives

Thailand’s Board of Investment (BOI) is advancing transformative policies to modernize the nation’s economy by promoting sustainability, enhancing local value creation, and strengthening global competitiveness. At its meeting on June 27, 2025, chaired by the Deputy Prime Minister, the BOI approved three key strategic initiatives:

1. Promotion of Local Content Utilization

To promote and increase the utilization of local content in the electric vehicle (EV) and electrical appliance industries, the projects that satisfy the following local content thresholds will be eligible for an additional 50% reduction in corporate income tax (CIT) for a period of two years under this scheme:

  • BEVs and Electrical Appliances: The use of local components must exceed 40% of the total component value.
  • PHEVs: Local content must exceed 45% of the total component value.
  • EV Parts: Local raw materials usage must exceed 15% of the total raw material value.

In all cases, the products must be certified as “Made in Thailand” (MiT) by the Federation of Thai Industries (FTI).

2. Improvement of Conditions for Light Industrial Businesses and Certain Activities with Environmental Impacts

To ensure fair competition and support the development of domestic industries, the BOI has introduced new regulations requiring certain manufacturing sectors—specifically, the production of furniture and components, bag manufacturing, and printing—to maintain a minimum of 51% Thai ownership. This requirement does not apply to the projects located within Special Border Economic Zones.

In parallel, to reinforce environmental protection and community well-being, the BOI has strengthened regulatory conditions for industries identified as having significant environmental or social impacts. These include, but are not limited to, metal processing, chemical manufacturing, and industrial plastics production. The projects in these categories will no longer be eligible for land ownership rights and must be situated within designated industrial estates, which are subject to heightened regulatory oversight. These revised conditions will apply to all applications submitted on or after September 1, 2025.

factory worker reading the manual

3. Comprehensive Monitoring and Tracking of All Stages of the Investment Promotion Process

To strengthen enforcement, the BOI has established a “Special Audit Team” to closely monitor that projects at risk of violating conditions or misusing incentives. High-risk sectors under special scrutiny include tire manufacturing, solar cells, metal products, bags, and furniture.

Major Project Approvals

The BOI has approved two major projects worth a combined THB 28.64 billion which are a Tier 3 Data Center by Stratus Technology in Rayong (THB 23.69 billion), and an expansion of air transportation services by Thai VietJet Air (THB 4.96 billion), featuring six new aircraft to boost Thailand’s role as a regional aviation hub.

Conclusion

By combining significant infrastructure investments with local content incentives and targeted tax relief, the BOI is guiding Thailand toward sustainable industrial growth focused on domestic value creation and supply chain strengthening. As the BOI evolves from gatekeeper to integrator of investment flows, businesses and legal advisers must closely align with its updated compliance and certification requirements to capitalize on these strategic opportunities.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Proposed Amendments to Company Registration Rules: Addressing Foreign Investment and Nominee Structures

The registration of companies in Thailand involving foreign nationals as shareholders or authorized directors is currently governed by Order No. 205/2555 of the Central Partnership and Company Registration Office: Re Criteria and Supporting Documents Required for the Registration of Partnerships and Limited Companies in Cases Involving Foreign Investment or Authorized Persons (the “Existing Order“).

This regulatory framework is designed to verify the legitimate financial standing of such entities by mandating bank certification that confirms both the Thai shareholder’s nationality and financial capacity, supplementing standard registration documentation requirements.

Background and Rationale

Thailand has encountered persistent challenges concerning the utilization of nominee shareholders, Thai nationals serving as proxies for foreign investors, across diverse business sectors. This practice demonstrates particular prevalence in tourism, hospitality services, real estate development, and construction industries, presenting substantial risks to the nation’s economic integrity and national security framework.

In recognition of these concerns, the Ministry of Commerce has identified the necessity for enhanced regulatory oversight governing the registration of partnerships and limited companies involving foreign participation.

Proposed Regulatory Framework

To address these challenges comprehensively, the Draft Order No. [..] issued by the Central Partnership and Company Registration Office: Re Criteria and Supporting Documents for the Registration of Partnerships and Limited Companies (the “Draft Order“), has been developed to supersede the Existing Order.

The Draft Order is strategically designed to prevent the misuse of Thai nominees to obscure foreign ownership structures in Thai business operations. Consequently, the Draft Order establishes more rigorous documentation requirements compared to the current regulatory framework.

three people sitting beside table

Key Provisions of the Draft Order

1. Enhanced Documentation Requirements

Where foreign investors constitute joint investors or serve as authorized signatory individuals empowered to legally bind partnerships or limited companies, registration applicants must submit comprehensive supporting documentation for each Thai partner or shareholder concurrent with the registration application.

2. Source of Investment Capital Verification

Registration applicants must provide substantive evidence of the legitimate source of investment funds for Thai shareholders or partners through submission of one of the following documents:

  • Financial Institution Certification: Bank certification issued by a Thai financial institution verifying the Thai shareholder’s financial standing and capacity;
  • Banking Transaction Records: Copies of the shareholder’s bank statements demonstrating account activity over the preceding six-month period;
  • Tax Documentation: Copies of the shareholder’s income tax returns (individual or corporate, as applicable); or
  • Alternative Documentation: Other relevant documents that adequately demonstrate the legitimate source and nature of investment funds.

Public Consultation Process

The Draft Order is currently subject to public consultation to solicit comprehensive feedback from relevant stakeholders and the broader business community. Following the conclusion of the consultation period, the Department of Business Development will conduct a thorough review and finalize the Draft Order to ensure its alignment with contemporary business practices and regulatory requirements, with implementation scheduled to occur upon completion of the review process.

Conclusion and Strategic Impact

The Draft Order constitutes a substantial advancement in regulatory oversight, designed to enhance transparency and eliminate the misuse of Thai nominee structures in business registrations involving foreign investment. Through the implementation of comprehensive documentation requirements and strengthened regulatory supervision, the Draft Order seeks to ensure that corporate ownership structures accurately reflect legitimate investment activities and maintain full compliance with Thai legal requirements.

Upon final adoption and implementation, this regulatory enhancement is anticipated to strengthen investor confidence while simultaneously protecting Thailand’s economic sovereignty and national security interests. The measure represents a balanced approach to foreign investment regulation, promoting legitimate business activities while preventing circumvention of existing ownership restrictions.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand Strengthens Global Trade Strategy to Boost Exports and Navigate Global Challenges

Thailand’s Ministry of Commerce recently convened a high-level policy briefing for directors of the Department of International Trade Promotion (DITP) offices across 58 countries. The meeting brought together the Thai Ambassador and Permanent Representative to the World Trade Organization (WTO), the Ambassador for Commercial Affairs, provincial commercial officers from various regions throughout Thailand, and more than 200 participants, including private sector representatives.

The meeting’s primary objective was to enhance inter-agency coordination and adopt a more proactive approach to implementing government trade policies. It also sought to strengthen collaboration between Thai trade officials stationed abroad and the private sector, with particular emphasis on accelerating export growth in the second half of the year. This initiative responds to ongoing global economic uncertainty and emerging challenges, including tariffs imposed by the United States. Despite these obstacles, the government remains optimistic that Thailand’s export sector will achieve growth exceeding 4% by 2025.

Strategic Market Focus

Trade envoys from around the world presented targeted strategies designed to enhance trade opportunities in five key markets:

  1. The United States
  2. India
  3. The Middle East
  4. ASEAN
  5. China
a close up shot of people in agreement

10-Point Policy Framework: “Turning Crisis into Opportunity”

  • Strengthening Export Momentum – The framework capitalizes on Thailand’s consistent export growth to maintain positive economic momentum.
  • Advancing Trade Negotiations – The government is accelerating key Free Trade Agreement negotiations and addressing trade barriers, particularly with the European Union and the United States.
  • Boosting Agricultural Trade – Officials are managing domestic agricultural challenges while opening new markets for key products.
  • Leveraging Soft Power – Thailand is promoting its culture and cuisine through the rebranded Thai SELECT initiative.
  • Seamless Integration – The strategy enhances coordination between provincial and international trade offices for unified trade promotion.
  • Engaging the Private Sector – The government is working closely with businesses to co-develop export strategies and build confidence.
  • Proactive Communication – The Ministry is increasing public awareness of its role and achievements in global trade.

Key Initiatives and Forward Strategy

  • Value-Added Agriculture: Thailand is among the few countries capable of using cassava to produce pharmaceutical capsules, an innovation that could increase the value of agricultural products by more than 100-fold.
  • Expanding Market Reach: The government is targeting new markets in the Middle East and ASEAN while relaunching the Thai SELECT brand with a one-to-three-star rating system, similar to the Michelin Guide, to elevate the global profile of Thai cuisine.
  • Enhanced Collaboration: Trade envoys and provincial commerce offices have been instructed to work closely together, strengthen ties with the private sector, and proactively communicate the Ministry’s progress and impact to the public and key stakeholders.

Conclusion

Thailand’s Ministry of Commerce is intensifying efforts to boost exports through enhanced coordination, strategic market focus, and effective utilization of soft power. Through clear policies and robust public-private collaboration, the nation aims to convert global challenges into trade opportunities and achieve an export growth rate exceeding 4% this year.

a stack cargo containers

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

on by

Thailand’s Board of Investment: Strategic Policy Reforms to Drive Sustainable Economic Growth

On 19 May 2025, Thailand’s Board of Investment (BOI), under the leadership of the Deputy Prime Minister and Minister of Finance, approved comprehensive strategic measures designed to strengthen the competitiveness of Thai Small and Medium Enterprises (SMEs), enhance tourism development in secondary provinces, and optimize support frameworks for data center investments.

Strengthening Thai SMEs for Global Competitiveness

In response to evolving global trade dynamics and uncertainties, particularly those originating from the United States, the BOI has introduced the “Measures to Enhance the Capabilities of Thai Entrepreneurs for the New Global Era“ initiative. This comprehensive program addresses four critical areas:

1. Enhanced SME Efficiency Incentives

The BOI has substantially expanded tax incentives for efficiency improvement projects. Under the revised framework, eligible investments now receive a five-year corporate income tax exemption equivalent to 100% of the investment value, representing a significant improvement from the previous three-year exemption at 50% of investment value. This enhancement is specifically designed to accelerate the adoption of energy-efficient technologies, automation systems, and other productivity-enhancing solutions.

2. Strategic Sector Risk Management

To mitigate oversupply risks and potential trade disruptions, the BOI will cease investment promotion in sectors identified as vulnerable to global oversupply conditions or subject to U.S. trade restrictions. These sectors include solar panel manufacturing, lead-acid battery production, downstream steel products, and specific automotive components.

3. Strengthened Production Requirements

Industries deemed sensitive to potential U.S. trade measures, particularly automotive and electronics sectors, must now demonstrate substantial transformation of raw materials to qualify for export-related tax benefits. This criterion ensures meaningful value addition and enhances compliance with evolving international trade standards.

4. Refined Foreign Employment Framework

Promoted enterprises employing more than 100 workers must maintain a workforce composition of at least 70% Thai nationals. Additionally, minimum salary requirements for BOI visa privileges have been established at THB 150,000 per month for executive positions and THB 50,000 per month for specialist roles. These measures are designed to facilitate knowledge transfer while maintaining optimal labor market balance.

green yellow and pink stained glass

Tourism Development in Secondary Provinces

To advance economic decentralization and cultivate emerging tourism destinations, the BOI has approved enhanced investment incentives for tourism-related projects across 55 designated secondary provinces spanning five regions.

Qualifying investments in facilities such as amusement parks, cultural centers, museums, open zoos, cruise terminals, and electric transportation systems will receive an extended corporate income tax exemption period of eight years, increased from the previous five-year term. Similarly, hotel development projects in these designated areas will benefit from a five-year tax exemption period, extended from the previous three-year framework.

Refined Data Center and Cloud Services Incentives

The BOI has updated its investment promotion criteria for data centers, data hosting, and cloud services to align with technological advancement and maximize economic impact. Projects incorporating cutting-edge technologies such as GPU computing capabilities and meeting established Power Usage Effectiveness (PUE) standards are eligible for corporate income tax exemptions of up to eight years. Standard projects may qualify for exemptions of up to five years.

All applications must include comprehensive Thai workforce development plans, which may encompass collaborative curriculum development with educational institutions, research and development initiatives, SME support programs, and commitments to utilize locally manufactured equipment where feasible.

Strategic Implications

These policy reforms underscore Thailand’s commitment to strengthening its long-term global competitiveness through the creation of a more conducive investment environment, promotion of sustainable economic diversification, and robust support for private sector expansion. The government continues to demonstrate leadership in investment promotion reform, SME development acceleration, foreign investment attraction, and equitable employment opportunity creation for Thai nationals.

These collective initiatives strengthen Thailand’s economic foundation and enhance the country’s resilience for future challenges and opportunities. Investors are encouraged to monitor BOI policy developments closely to optimize their strategic positioning within Thailand’s evolving economic landscape and maximize available investment incentives.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles

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

Computer Crime and Telephone Scams: Advancing Legal Frameworks with the Second Royal Decree

Introduction:

Following the implementation of the amended Royal Decree on the Prevention and Suppression of Technological Crimes in February 2024, as detailed in our previous article Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud. Thailand has further strengthened its defenses against cybercrime and telephone scams. The Second Royal Decree, which was published earlier, officially took effect on April 13, 2025. This decree builds on the initial framework’s successes while addressing remaining challenges. With daily financial losses now averaging 50–60 million baht, down from 60–70 million baht in early 2024, the need to adapt to evolving cyber threats remains urgent. The new decree introduces enhanced measures to close loopholes, strengthen enforcement, and deepen international cooperation, ensuring a more resilient digital ecosystem for Thai citizens.

The Bank of Thailand (BOT) has continued its proactive role, collaborating with public and private stakeholders to refine compliance mechanisms and ensure accountability across sectors. The Second Royal Decree responds to emerging trends, such as the rise of AI-driven scams, decentralized fraud networks, solicit calls impersonating officials, and the misuse of digital assets, while reinforcing victim protections and stakeholder responsibilities.

Key Provisions of the Second Royal Decree:

  1. AI and Deepfake Regulations: The decree introduces specific measures to combat AI-generated scams, including deepfake voice and video fraud. Platforms hosting such content must deploy detection tools and face penalties for non-compliance.
  2. Real-Time Monitoring of Transactions: Financial institutions are now required to implement real-time monitoring systems to flag suspicious transactions instantly, preventing funds from leaving victim accounts before scams are detected.
  3. Expanded SIM Card Accountability: Telecom providers must verify SIM card ownership more stringently and suspend services linked to scam networks within hours of detection. Additionally, SMS messages containing suspicious links will be blocked to curb phishing attempts.
  4. Victim Compensation Fund: A centralized fund, supported by contributions from financial institutions and telecoms, will streamline refunds for victims, reducing delays and ensuring fair compensation.
  5. Social Media Accountability: Social media platforms must remove fraudulent content within 24 hours of notification and share data with authorities to track scam origins.
  6. Strengthened Extraterritorial Enforcement: The decree enhances mechanisms for pursuing overseas offenders by establishing dedicated cybercrime task forces with international law enforcement agencies, such as AOC 1441, to combat cross-border fraud.
  7. Public Awareness Mandates: Financial institutions and telecoms must fund and distribute public education campaigns to inform citizens about scam tactics, including solicit calls impersonating officials, and prevention methods. The Ministry of Digital Economy and Society has launched initiatives to warn citizens about these scams, emphasizing the importance of vigilance.
  8. Know Your Customer (KYC) Enhancements for Digital Assets: The decree aligns with industry standards by mandating stricter KYC protocols for opening bank accounts, digital wallets, and other financial services, with a particular focus on digital assets. This measure aims to prevent the creation of mule accounts often used in the trade of digital assets. As of April 2025, the Thai SEC reports that over 200,000 digital wallets linked to fraudulent digital asset transactions have been blacklisted, a significant step in curbing the misuse of these financial tools.
  9. Inter-Agency Collaboration: The decree fosters cooperation between agencies like the Thai SEC and other authorities to share information, track scams, and blacklist offenders, ensuring a unified approach to cybercrime prevention. The Thai SEC has been actively involved in identifying solicit calls and fraudulent schemes, particularly those involving digital assets, working closely with the Ministry of Digital Economy and Society.
  10. Protection Against Solicit Calls: The decree specifically addresses solicit calls impersonating officials, a growing threat highlighted by the Thai SEC. Citizens are warned not to engage with unsolicited calls requesting personal information or payments, especially those related to digital asset investments, and authorities are cracking down on such scams through targeted investigations and public alerts.
woman wearing earpiece using white laptop computer

Impact on Stakeholders:

The Second Royal Decree places greater demands on financial institutions, telecom providers, and social media platforms to invest in advanced technologies and compliance systems. Banks must upgrade fraud detection algorithms and adhere to stricter KYC standards, particularly for digital asset transactions, while telecoms are required to enhance SIM verification processes and block suspicious SMS links. Social media platforms face increased scrutiny to curb misinformation and fraudulent ads, including soliciting calls impersonating officials and scams promoting fake digital asset investments. For citizens, the decree promises faster refunds and better protections but underscores the need for ongoing vigilance against sophisticated scams like AI-driven fraud, impersonation tactics, and fraudulent digital asset schemes.

The BOT’s continued oversight ensures that stakeholders align with these regulations, with non-compliance leading to substantial fines and reputational risks. The blacklisting of over 200,000 digital wallets linked to digital asset fraud as of April 2025, as reported by the Thai SEC, marks a significant step toward fraud prevention, particularly for vulnerable populations targeted by scammers. Additionally, the Thai SEC’s warnings about soliciting calls impersonating officials, especially those related to digital assets, have heightened public awareness, encouraging citizens to verify the legitimacy of communications before sharing sensitive information or investing in digital assets.

Global Collaboration:

Recognizing the borderless nature of cybercrime, the Second Royal Decree strengthens Thailand’s partnerships with global entities like INTERPOL, ASEAN cybersecurity networks, and AOC 1441. These collaborations focus on sharing intelligence, tracking cross-border mule accounts, and extraditing offenders, with a particular emphasis on scams involving digital assets. The decree’s extraterritorial provisions empower Thai authorities to target scam hubs in neighboring countries, ensuring no safe haven for perpetrators. The Thai SEC’s involvement in international efforts further enhances these collaborations, particularly in addressing solicit calls and other cross-border scams related to digital assets.

Effective Date:

The Second Royal Decree took effect on April 13, 2025, following its earlier publication in the Royal Gazette. The government has allocated a 60-day transition period for stakeholders to align with the new requirements, with full enforcement expected by June 13, 2025.

Conclusion:

The Second Royal Decree, effective as of April 13, 2025, marks a pivotal advancement in Thailand’s fight against cybercrime and telephone scams. By addressing emerging threats like AI-driven fraud, solicit calls impersonating officials, and the misuse of digital assets, while reinforcing accountability across sectors, the government demonstrates its commitment to safeguarding citizens’ financial security. The BOT’s leadership, inter-agency collaboration with entities like the Thai SEC, and global partnerships further bolster these efforts, creating a robust framework to tackle both domestic and international cyber threats. For more details on the initial framework, refer to our previous article Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud. However, sustained success will require cooperation from all stakeholders—banks, telecoms, platforms, and citizens—to stay ahead of increasingly sophisticated criminals.

Key Takeaways:

Swift Implementation: Full enforcement of the second Royal Decree is expected by June 13, 2025.

Proactive Evolution: The Second Royal Decree, effective on April 13, 2025, targets new threats like AI-driven scams, solicit calls impersonating officials, and digital asset fraud, ensuring Thailand’s laws keep pace with technological advancements.

Enhanced Protections: Real-time monitoring, SMS link blocking, and a victim compensation fund prioritize rapid response and fair recovery for scam victims.

Stakeholder Accountability: Stricter KYC mandates for digital assets, blacklisting of 200,000 digital wallets as of April 2025, and shared responsibility among banks, telecoms, and platforms strengthen fraud prevention.

Global Reach: Strengthened international cooperation with entities like AOC 1441 and the Thai SEC targets cross-border scam networks, including those involving digital assets.

Public Empowerment: Mandatory awareness campaigns, supported by the Thai SEC and the Ministry of Digital Economy and Society, equip citizens with tools to recognize and avoid scams, including impersonation tactics and digital asset fraud.

Related Article: Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud – The Legal Co., Ltd.

Author: Panisa Suwanmatajarn, Managing Partner.

Other Articles