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:
The United States
India
The Middle East
ASEAN
China
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.
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.
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.
Thailand is shaping the future of artificial intelligence (AI) through a public consultation led by the Electronic Transactions Development Agency (ETDA) from May 10 to June 9, 2025. AI offers immense potential to boost economic growth, enhance industries, and improve quality of life, but it also raises concerns about data privacy, system security, fairness, and ethical impacts. Building on lessons from earlier drafts, such as the 2022 Royal Decree on Business Operations using AI Systems and the 2023 Act on AI Innovation Promotion, which faced criticism for broad frameworks and burdensome rules, ETDA’s new draft principles aim to balance innovation with responsibility. The consultation seeks public input on four key areas: AI risk management, industry promotion, user rights, and enforcement mechanisms.
1. AI Risk Management Principles:
To ensure safe AI development and use, the draft principles propose a risk-based approach:
Risk Level Assignment: Instead of fixed criteria for Prohibited-risk or High-risk AI, industry-specific regulators will collaborate to define these categories, tailoring rules to sector-specific risks.
Domestic Representatives for Foreign Providers: Foreign AI providers must appoint local legal representatives to ensure compliance with Thai regulations.
Incident Reporting: High-risk AI providers are required to report serious incidents to authorities, enabling a swift response to potential harms.
User Responsibilities: AI users must maintain human oversight, log activities, ensure high-quality input data to avoid bias, assess potential impacts, and cooperate with regulators.
These measures aim to address risks like misalignment with ethical AI governance and future high-impact concerns, as highlighted by global incident databases (e.g., OECD AI Incidents Monitor).
2. Promoting the AI Industry:
To foster innovation, the draft principles encourage AI development while addressing past criticisms of regulatory burdens:
Text and Data Mining (TDM): Inspired by the EU, Thailand proposes allowing TDM for research and development, enabling access to copyrighted data for AI training.
Regulatory Sandboxes: Controlled testing environments will support real-world AI trials, reuse of privacy data for public-interest projects, or penalty-free “safe harbor” zones for developers.
AI Governance Clinic (AIGC): Established in 2022, the AIGC provides technical and practical guidance to public and private sectors, streamlining compliance and innovation.
These initiatives aim to create a supportive ecosystem for AI startups and established players alike.
3. Rights of AI Users:
The draft principles prioritize user protections, ensuring individuals affected by high-risk AI have clear rights:
Right to be Informed: Individuals must be notified when AI impacts them, fostering transparency.
Right to Explanation: Users can request clear explanations of how AI systems function and influence decisions, particularly when affecting their lives or security.
Right to Oppose AI Decisions: Individuals can challenge AI-generated decisions and request human-led alternatives, safeguarding autonomy.
These rights, inspired by frameworks like the EU AI Act, empower users and build public trust in AI systems.
4. Enforcement and Penalties:
To ensure compliance, the draft principles outline enforcement and penalty mechanisms, with a focus on emerging risks:
Generative AI Misuse: Beyond existing laws like the Computer-Related-Offense Act, ETDA is exploring criminal penalties for misuse of generative AI, such as creating deepfakes or election-related misinformation (e.g., false audio, images, or videos).
Enforcement Measures: Administrative orders can halt the use or distribution of Prohibited-risk or misused High-risk AI. If violations persist, regulators may propose collaboration with the Ministry of Digital Economy and Society to restrict access via internet service providers, though this is under consultation.
Penalties: Penalties remain flexible, potentially including fines, disqualification from innovation support, or administrative measures, depending on whether governance is mandatory or voluntary. Specifics are still under review.
Conclusion:
ETDA’s public consultation advances Thailand’s efforts to foster an environment where AI innovation thrives while ensuring responsible use and protection for stakeholders. This consultation offers a vital opportunity for stakeholders to shape AI governance, enabling technological progress while upholding public trust and ethical standards.
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:
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.
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.
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.
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.
Social Media Accountability: Social media platforms must remove fraudulent content within 24 hours of notification and share data with authorities to track scam origins.
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.
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.
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.
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.
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.
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.
Protecting Children and Youth: Thailand’s Amended Laws Against Online Cyberbullying
As previously discussed in our articles Thailand – defamation and insult can be considered as cyberbullying – The Legal Co., Ltd. The current Thai legal framework addressing cyberbullying presents notable challenges. While existing laws, such as the Penal Code (Sections 326 and 328), allow victims to pursue defamation charges, significant limitations persist. These gaps are particularly evident in private digital forums where third-party witnesses are absent or when prosecutorial intent cannot be definitively established. Despite the existing Computer Crime Act B.E. 2560 (2017), a more nuanced and comprehensive legal approach is necessary.
Rationale for Legislative Enhancement
Protecting children and youth in the digital landscape is paramount. Their inherent vulnerabilities expose them to multifaceted online risks, including:
Cyberbullying
Online grooming
Sexual exploitation
Exposure to inappropriate content
Proposed Legislative Amendment
The Minister of Justice has drafted a comprehensive amendment to the Penal Code (“Draft Law”), specifically targeting online offenses against children and youth. Key provisions of the Draft Law include:
Precise definition of cyberbullying offenses
Clear penalties for actions causing psychological harm, shame, or adverse psychological effects
Potential consequences including:
Imprisonment up to one year
Fines up to 20,000 Baht
Combination of imprisonment and financial penalties
Notably, the amendment introduces an escalated penalty structure, increasing punishments by one-third for cyberbullying conducted on public platforms. This approach acknowledges the broader societal impact of such digital transgressions.
Implementation and Comprehensive Strategy
While legislative reform represents a critical initial step, a holistic approach is essential. The proposed strategy encompasses:
Rigorous legal enforcement
Comprehensive educational initiatives
Targeted awareness programs for:
Children
Youth
Parents
Educators
Next Procedural Steps
Following public consultation and feedback from authorities, the Draft Law awaits cabinet and parliamentary review and formal legislative enactment. This collaborative process ensures thorough consideration and refinement of the proposed legal framework.
Conclusion
The proposed Draft Law represents a significant advancement in digital child protection. By establishing clear legal boundaries and penalties, Thailand demonstrates a proactive commitment to safeguarding its youth in an increasingly complex digital ecosystem. Successful implementation will require sustained, multi-sectoral collaboration, balancing legal deterrence with educational empowerment.
Over The Top: Thailand’s Push to Regulate Online Streaming Platforms
In a significant step toward managing the rapid rise of Over-The-Top (OTT) platforms, Thailand’s Ministry of Digital Economy and Society has launched an initiative to bring these online streaming services under closer scrutiny. The Ministry has entrusted the National Broadcasting and Telecommunications Commission (NBTC) and the Electronic Transactions Development Agency (ETDA) with the task of forming a dedicated working committee. This group is charged with studying and proposing regulatory measures for OTT platforms—services that deliver diverse content, including movies, TV shows, music, and podcasts, directly to users via the internet. Unlike conventional media, these platforms operate independently of mobile network providers, cable operators, or digital TV broadcasters. Well-known examples include Netflix, YouTube, Disney+, TikTok, and Spotify.
Government Concerns:
The decision to regulate OTT platforms arises from mounting concerns about their potential exploitation. Authorities have noted that these services can serve as conduits for online crimes, such as fraud, the spread of inappropriate content, and copyright violations, all of which have caused significant harm to the public. In response, the Ministry aims to create a digital landscape that is secure, equitable, and sustainable, benefiting consumers, service providers, and the digital economy as a whole.
Focus Areas:
To this end, the working committee has identified five core areas of focus, each addressing distinct challenges posed by OTT platforms while fostering a fair and innovative digital environment.
1. Enhancing Safety Measures
The first area of focus is strengthening safety protocols. This involves curbing copyright infringement and preventing access to illegal content. The committee plans to introduce identity verification measures to deter misuse of these platforms, ensuring they are not exploited for illicit purposes.
2. Regulating Content
The second priority centers on content oversight. The committee seeks to refine existing laws, empowering regulatory bodies to monitor and control the material distributed on OTT platforms more effectively. Additionally, foreign platforms operating in Thailand will be required to obtain licenses and comply with local laws. The initiative also includes advocating for international cooperation in establishing shared regulatory frameworks.
3. Boosting the Digital Industry and Taxation
The third focus area aims to promote Thailand’s digital industry while ensuring fair economic contributions from OTT platforms. This includes supporting local entrepreneurs in developing homegrown platforms and mandating that OTT services generating revenue from Thai users pay taxes in the country. These efforts are intended to drive the rapid growth of domestic digital businesses and create added value within the national economy.
4. Protecting Personal Data
Data privacy is the fourth pillar of this regulatory framework. OTT platforms will be required to adhere to stringent data protection standards, such as those outlined in the European Union’s General Data Protection Regulation (GDPR). Measures will also be implemented to regulate the collection and use of user data, safeguarding individuals’ privacy rights and preventing abuses.
5. Ensuring Fair Competition
Finally, the committee will address competition in the OTT market. The goal is to prevent large platforms from establishing monopolies that could stifle fair competition. By supporting the development of local platforms and promoting market decentralization, the initiative seeks to level the playing field and encourage innovation.
A Forward-Looking Approach:
This comprehensive strategy reflects Thailand’s recognition of both the opportunities and risks presented by OTT platforms. As these services continue to reshape how people consume media, the Ministry of Digital Economy and Society, alongside the NBTC and ETDA, is taking proactive steps to harness their potential while mitigating their downsides. By focusing on safety, content regulation, economic fairness, data protection, and competitive balance, Thailand aims to set a precedent for responsible digital governance—one that could resonate on the global stage.
As the working committee begins its task, the nation watches closely, hopeful that these measures will pave the way for a digital future that is not only vibrant and innovative but also secure and just for all.
Online Gaming Act: Push for a Balanced and Thriving Digital Economy
Thailand’s Ministry of Digital Economy and Society (MDES) is taking significant steps to regulate and promote the online gaming industry through the draft Film and Game Act (Draft Act). This legislative effort aims to balance the rapid growth of the gaming industry with the need to protect society, particularly children and youth, from potential negative impacts. The Draft Act seeks to establish a comprehensive framework for the industry, focusing on content regulation, industry promotion, and consumer protection.
Key Provisions of the Draft Act:
1. Content Regulation and Age-Appropriate Classification
The Draft Act introduces a content rating system for films and games, ensuring that media content is appropriate for different age groups. This system will help parents and guardians make informed decisions about what their children consume. Games and films must display their content ratings, brief descriptions, and identification codes to inform consumers about their suitability.
The content rating system will categorize games and films based on their themes, such as violence, sexual content, or language. For example, games with violent content may be restricted to players aged 18 and above, while games with educational content may be suitable for all ages. This system will be enforced by the Content Classification Committee, which will review and classify media content before it is released to the public. Developers and publishers must ensure their products comply with these classifications and display the appropriate labels prominently.
2. Establishment of Regulatory Bodies
The Draft Act proposes the creation of a National Film and Game Industry Promotion Committee, chaired by the Prime Minister, to oversee the industry. This committee will include representatives from various ministries, experts in media, psychology, culture, and marketing, as well as stakeholders from the gaming and film industries. Additionally, a Content Classification Committee will be established to review and classify media content.
The National Film and Game Industry Promotion Committee will be responsible for setting policies, promoting the industry, and ensuring compliance with the law. It will also work to attract international investments and foster innovation in the gaming sector. The Content Classification Committee, on the other hand, will focus on reviewing and classifying media content to ensure it meets the standards set by the law. These bodies will play a crucial role in shaping the future of Thailand’s gaming and film industries.
3. Streamlined Licensing and Registration
The Draft Act simplifies the licensing process for gaming and film businesses, replacing the previous stringent approval system with a notification-based system. This change aims to reduce bureaucratic hurdles while maintaining standards to protect consumers and public interests.
Under the new system, businesses will only need to notify the relevant authorities of their operations, rather than obtaining prior approval. This streamlined process will make it easier for startups and small businesses to enter the market. However, businesses must still adhere to the standards set by the law, such as content classification and consumer protection measures. The authorities will conduct periodic inspections to ensure compliance.
4. Promotion of Local Industry and Talent
The draft law emphasizes the development of Thailand’s gaming and film industries by promoting local talent, encouraging innovation, and attracting international investments. It also aims to create a fund to support the growth of these industries, ensuring they remain competitive on a global scale.
The government plans to establish a fund to provide financial support to local game developers, filmmakers, and other stakeholders. This fund will be used to finance innovative projects, provide training and development programs, and support international collaborations. Additionally, the government will work with educational institutions to develop curricula that align with the needs of the gaming and film industries, ensuring a steady pipeline of skilled talent.
5. Protection of Youth and Society
The Draft Act prioritizes the protection of children and youth from harmful content. It mandates that games and films with inappropriate content, such as violence, explicit material, or content that undermines national security or morality, must be restricted or banned. The law also empowers authorities to take action against media that violates these standards.
The law includes strict provisions to prevent the dissemination of harmful content to minors. For example, games with violent or explicit content must be clearly labeled and restricted to appropriate age groups. The authorities will have the power to take down or block access to games and films that violate these standards. Additionally, the law encourages the development of parental control features in games to help parents monitor and restrict their children’s access to inappropriate content.
6. Penalties for Non-Compliance
The Draft Act introduces administrative fines and criminal penalties for businesses that fail to comply with content classification, licensing, or other regulatory requirements. Penalties can range from fines of up to 5 million baht to imprisonment, depending on the severity of the violation.
Businesses that fail to comply with the law may face significant penalties. For example, a company that releases a game without the required content classification could be fined up to 5 million baht. In severe cases, such as the dissemination of content that undermines national security or morality, the responsible individuals could face imprisonment. These penalties are designed to ensure that businesses take their regulatory obligations seriously and prioritize consumer protection.
What the Online Gaming Industry Needs to Prepare For:
1. Compliance with Content Classification
Game developers and publishers must ensure their products are reviewed and classified according to the new content rating system. This includes displaying appropriate labels and ensuring that games are marketed responsibly to the right age groups.
Developers will need to submit their games to the Content Classification Committee for review before release. The committee will assess the game’s content and assign an appropriate rating. Developers must then display this rating prominently on the game’s packaging, marketing materials, and digital storefronts. Failure to comply with these requirements could result in fines or other penalties.
2. Adaptation to New Licensing Requirements
Businesses in the gaming industry will need to familiarize themselves with the new notification-based licensing system. This includes registering their operations and adhering to the standards set by the regulatory bodies.
The new licensing system will require businesses to notify the authorities of their operations and provide details about their products and services. While this process is less burdensome than the previous approval system, businesses must still ensure they meet all regulatory requirements. This includes adhering to content classification standards, protecting consumer data, and ensuring fair business practices.
3. Focus on Youth Protection
The industry must prioritize creating content that is suitable for younger audiences or clearly labeling games that are intended for mature players. Developers should also consider implementing parental controls and other safeguards to protect minors.
Developers should design games with youth protection in mind, ensuring that content is appropriate for the intended age group. For games aimed at mature audiences, developers must implement robust age verification systems and parental controls. Additionally, developers should avoid using manipulative design practices, such as excessive in-game purchases, that could exploit younger players.
4. Investment in Local Talent and Innovation
With the government’s focus on promoting the local gaming industry, businesses should invest in developing Thai talent and creating innovative games that can compete globally. Collaboration with educational institutions and participation in government-led initiatives will be key.
Businesses should partner with universities and vocational schools to develop training programs that equip students with the skills needed in the gaming industry. Additionally, companies should invest in research and development to create innovative games that appeal to both domestic and international audiences. Participation in government-led initiatives, such as industry forums and innovation grants, can also help businesses stay ahead of the curve.
5. Preparedness for Regulatory Inspections
Gaming companies should be prepared for inspections by regulatory authorities to ensure compliance with the new law. This includes maintaining proper records, adhering to content guidelines, and cooperating with authorities during investigations.
Companies should establish internal compliance teams to ensure they meet all regulatory requirements. This includes maintaining detailed records of their operations, content classifications, and consumer complaints. Regular internal audits can help identify and address potential compliance issues before they are flagged by authorities.
6. Engagement with Regulatory Bodies
The industry should actively engage with the newly established regulatory bodies to provide feedback and stay informed about any updates or changes to the law. Participation in public consultations and industry forums will be crucial.
Businesses should participate in public consultations and industry forums to share their perspectives and provide feedback on the Draft Act. This engagement will help ensure that the final regulations are practical and effective. Additionally, businesses should establish regular communication channels with regulatory bodies to stay informed about any updates or changes to the law.
Conclusion:
Thailand’s Draft Act represents a significant step toward regulating and promoting the online gaming industry while safeguarding societal interests. By balancing growth with responsibility, the law aims to create a thriving digital economy that benefits both businesses and consumers. For the gaming industry, this means adapting to new regulations, prioritizing youth protection, and seizing opportunities for growth and innovation. As the Draft Act moves closer to implementation, stakeholders must prepare to navigate this evolving landscape and contribute to the sustainable development of Thailand’s gaming sector.
Computer Crime and Telephone Scams: Strengthening Legal Frameworks to Combat Cyber Fraud
Introduction:
In response to the escalating threat of cybercrime and telephone scams, the Thai government has taken decisive steps to enhance its legal framework. The Cabinet has approved amendments to the Royal Decree on the Prevention and Suppression of Technological Crimes. This move comes amid growing concerns over the daily financial losses suffered by citizens, which currently average between 60 to 70 million baht. Prior to the implementation of recent measures, these losses were even higher, ranging from 100 to 120 million baht per day. The urgency of the situation has necessitated immediate action to address the vulnerabilities in the existing legal framework.
Bank of Thailand (BOT) also supports the principles of this draft Royal Decree and has collaborated with relevant agencies to provide input to refine the draft, ensuring it effectively enhances measures to prevent and suppress technological crimes.
The BOT has been actively working with both public and private sector stakeholders to establish mechanisms where service providers must share responsibility and compensate for damages if they fail to comply with regulatory standards. This policy direction is a priority for the BOT, which is in the process of clearly defining the responsibilities of financial institutions in addressing technological crimes. These responsibilities will be used to assess liability for damages caused by such crimes, in conjunction with other relevant service providers under this Royal Decree and related regulations.
The original Royal Decree, enacted in 2023, was found to lack sufficient authority and penalties in several critical areas. These gaps include the inability to take action against “mule accounts” on peer-to-peer (P2P) platforms, the absence of mechanisms to refund victims, and the lack of shared liability among parties involved in criminal activities. The proposed amendments aim to address these shortcomings by introducing several key provisions:
1. Enhanced Authority Over P2P Platforms: The amendments grant authorities greater power to take action against peer-to-peer (P2P) platforms involved in illegal activities. This includes the ability to investigate, suspend, or shut down platforms facilitating fraudulent transactions.
2. Mandatory SIM Card Suspension: Telecommunications providers are now required to suspend SIM cards associated with fraudulent activities. This measure aims to disrupt the operations of scam networks that rely on mobile communication.
3. Faster Refunds for Victims: Banks are mandated to share information about “mule accounts” (accounts used to launder money) with the Anti-Money Laundering Office (AMLO). This will expedite the process of identifying and refunding victims of cyber fraud.
4. Stricter Penalties for Non-Compliance: P2P platforms and banks that fail to prevent the opening of accounts by criminals will face increased penalties. This provision ensures that financial institutions take proactive measures to verify the legitimacy of account holders.
5. Penalties for Data Breaches: Individuals or entities that disclose personal . information without authorization will be subject to harsher punishments. This aims to deter data breaches and protect citizens’ privacy.
6. Shared Liability for Financial Institutions: Financial institutions, mobile networks, and social media platforms will now bear partial responsibility for damages resulting from cybercrimes. This shared liability framework encourages all stakeholders to implement robust security measures.
7. Extraterritorial Jurisdiction: The amendments include provisions to hold offenders and their supporters accountable, even if they are located overseas. This ensures that international perpetrators involved in cybercrimes affecting Thailand can be pursued and penalized. This provision is crucial for addressing cross-border cybercrime and ensuring that offenders cannot evade justice by operating from outside the country.
Impact on Stakeholders:
The amendments will have significant implications for various stakeholders, including financial institutions, telecommunications providers, social media platforms, and the general public. Financial institutions and telecom companies will need to invest in robust compliance mechanisms to avoid penalties and ensure adherence to the new regulations. Social media platforms will be required to enhance their monitoring systems to detect and prevent fraudulent activities. For the public, these changes promise greater protection against cyber fraud and telephone scams, but they will also need to remain vigilant and informed about the risks associated with online transactions.
Effective Date:
The amended Royal Decree is expected to take effect immediately after its publication in the Royal Gazette. The Secretary-General of the Council of State has indicated that the process of finalizing the draft and publishing it will take no more than 30 days. As a result, the new regulations are anticipated to be enforceable by February 2024. This swift implementation underscores the government’s commitment to addressing the growing threat of cybercrime and protecting citizens from financial losses.
Conclusion:
The amendments to the Royal Decree represent a significant step forward in Thailand’s efforts to combat cybercrime and telephone scams. By addressing the gaps in the existing legal framework and introducing stricter penalties, the government aims to create a safer digital environment for its citizens. The inclusion of extraterritorial jurisdiction ensures that offenders and their supporters, even those located overseas, can be held accountable. However, the success of these measures will depend on the collective efforts of all stakeholders, from financial institutions to individual users, to remain vigilant and proactive in the face of evolving cyber threats. The BOT’s proactive involvement in defining responsibilities and ensuring compliance further strengthens the framework, paving the way for a more secure financial and technological ecosystem in Thailand.
Key Takeaways:
Urgency of Action: The Thai government has recognized the urgent need to combat cybercrime and telephone scams, given the substantial daily financial losses incurred by citizens.
Strengthened Legal Framework: Amendments to the Royal Decree introduce stricter penalties and broader authority for law enforcement agencies to tackle cyber fraud and telephone scams effectively.
Shared Responsibility: The new regulations emphasize the shared responsibility of financial institutions, telecom providers, and social media platforms in preventing cybercrime.
Enhanced Victim Protection: Faster refund mechanisms and increased penalties for data breaches aim to provide better protection for victims of cyber fraud and scams.
Global Collaboration: The Thai government is working with international partners to address cross-border cybercrime, highlighting the importance of global cooperation in combating this growing threat.
Extraterritorial Jurisdiction: The amendments include provisions to hold offenders and their supporters accountable, even if they are located overseas. This ensures that international perpetrators involved in cybercrimes affecting Thailand can be pursued and penalized.
Effective Date: The amended Royal Decree is expected to take effect immediately after its publication in the Royal Gazette, with enforcement anticipated by February 2024.
Telemedical Services: Navigating the Digital Healthcare Frontier
With the integration of technology into virtually every aspect of life, it is undeniable that the medical sector also requires technological innovations to reform traditional medical practices. This transformation necessitates close monitoring and regulation to ensure that service recipients are well protected—not only in terms of health and safety but also in safeguarding their personal information and privacy. The Ministry of Public Health recognizes the importance of establishing standards for both public health services and private telemedical service providers to ensure that telemedical services are efficient, convenient, fast, safe, standardized, verifiable, and in line with the principles of good governance. As a result, the Ministry has issued the Announcement on the Service Standards for Telemedical Service Providers and Telemedicine Public Health Services (the “Announcement”).
Under the Announcement, Telemedical Services refer to the provision of medical consultation, examination, diagnosis, treatment, nursing, disease prevention, health promotion, and physical rehabilitation remotely, using a digital system to transmit audio and video data.
The Announcement outlines the criteria required for telemedical service providers and the systems they use. Some of these criteria are:
There must be a sufficient number of medical practitioners to provide telemedical services without disrupting normal operations at each medical establishment.
There must be a registration and identity verification process for both service recipients and providers. This system must comply with the standards prescribed by the Electronic Transactions Development Agency and the Digital Development Agency.
A communication system must be established between service recipients and providers. This system must be integrated with identity verification and appointment scheduling in an appropriate manner.
Date, time, medical reports, verification results, and other relevant information must be recorded in audio, picture, text, or video format.
A process must be in place to explain the details, procedures, potential effects, and risks to the service recipient before telemedical services are provided, including obtaining consent.
A document, manual, or guideline for providing telemedical services must be created, in accordance with the standards set by the Office of Permanent Secretary, Ministry of Public Health.
Telemedical services must include the delivery of medicines and medical supplies to patients’ house.
Although detailed criteria for each qualification are yet to be fully outlined, this Announcement effectively serves as a checklist for telemedical service providers to assess whether their systems align with the regulated standards.
It is recommended that the telemedical service providers conduct comprehensive internal audits, develop adaptive compliance strategies, maintain flexible operational frameworks, and anticipate future regulatory refinements.
Economic: Comprehensive Strategy Proposed by Thailand’s Private Sector to Drive Sustainable Growth
As Thailand grapples with a complex web of economic challenges, including a global economic slowdown, weak domestic recovery, and constraints faced by small and medium-sized enterprises (SMEs) in accessing credit, the country’s private sector has come together to present a comprehensive strategy to revitalize the economy.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), a coalition of prominent business associations, has compiled a detailed White Paper, outlining a multi-faceted approach to tackle the pressing issues and unlock Thailand’s full economic potential. This White Paper was recently presented to the Prime Minister during a meeting between the Prime Minister and JSCCIB.
The JSCCIB’s White Paper identifies four key areas of focus: economic problem-solving, assistance for SMEs, water management, and enhancing the country’s competitiveness. Within these areas, the private sector has proposed a range of policy measures, including:
Reducing the burden of living costs for the public and operating costs for businesses i.e. controlling essential goods and services prices, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, especially non-performing auto loans.
Implementing energy price reductions and restructuring.
Implementing economic stimulus measures e.g. digital wallet, increasing purchasing power, Easy e-receipt, and other tax incentives.
Enhancing the competitive capabilities of entrepreneurs e.g. using data-driven strategies to promote Thai products on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
Supporting SME development i.e. easing loan approval requirements, promoting and pushing entrepreneurs towards adopting Smart SMEs, and improving laws and regulations to facilitate ease of doing business.
Developing a corporate digital authentication system (Corporate Digital ID).
Urgently overhauling regulations and procedures related to licensing and the use of technology in government operations.
Enhancing investment in the Eastern Economic Corridor (EEC) i.e. improving large-scale infrastructure, proposing incentives to encourage and attract investment in the EEC, and expanding the EEC to include Prachinburi province, which would significantly boost investment in the region.
Facilitating trans-shipment i.e. establishing a transshipment sandbox for container ships at Laem Chabang Port for a 1-year period.
Developing logistics infrastructure and promoting border trade, resolving restrictions and obstacles in transporting goods from Thailand to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting goods.
Safeguarding domestic industries and enhancing the global standing of Thai products.
Promoting the transformation of the automotive industry e.g. transitioning from combustion engines to future vehicles, expanding and maintaining the automotive production base.
Promoting a Green Economy or Eco-friendly Economy, including bioeconomy, circular materials, and waste symbiosis.
Implementing policies to foster a cashless and digital economy and providing tax incentives for businesses adopting transition finance and green investments.
Implementing policies to attract foreign investment and establish Thailand as a regional economic hub.
The JSCCIB believes that the partnership between the government and the private sector will effectively implement the proposed measures to address economic challenges and revitalize Thailand’s economy. The ambitious target is to achieve a sustainable GDP growth rate of 3-5% or more in the near future.
Key Takeaways from the White Paper:
Easing the Burden: The strategy calls for measures to reduce the burden of living costs for the public and operating costs for businesses. This includes controlling the prices of essential goods and services, restricting electricity and diesel fuel prices, increasing the minimum wage, and solving debt problems, particularly non-performing auto loans.
Boosting Competitiveness: The proposals aim to enhance the competitive capabilities of entrepreneurs and promote Thai products. This involves using data-driven strategies to market Thai goods on e-commerce platforms, increasing investment measures with a focus on local content, and imposing taxes on foreign digital services.
Empowering SMEs: The White Paper emphasizes the need to support SME development, including easing loan approval requirements, promoting the adoption of smart technologies, and improving laws and regulations to facilitate ease of doing business.
Strengthening Infrastructure and Trade: The strategy underscores the importance of developing logistics infrastructure and fostering cross-border trade. This includes facilitating transshipment at Laem Chabang Port, resolving restrictions in transporting goods to neighboring countries, and amending regulations to enhance the efficiency of importing and exporting.
Regulatory Overhaul: The JSCCIB calls for an urgent overhaul of regulations and procedures related to licensing and the use of technology in government operations, recognizing the need to streamline bureaucratic processes.
Embracing Sustainability: The proposals incorporate a strong emphasis on promoting a green and sustainable economy, including the transition towards a circular economy, the bioeconomy, and the transformation of the automotive industry.
Digital Transformation: The strategy underscores the significance of digital transformation, with initiatives such as the development of a corporate digital authentication system and the promotion of a cashless and digital economy.
