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Thailand: Cabinet to mull FBA cut of 3 services
The Commerce Ministry is scheduled to submit to the cabinet meeting early next month a proposal to remove three service businesses from List 3 of the Foreign Business Act (FBA) to facilitate foreign investment in Thailand.
Vuttikrai Leewiraphan, director-general of the Business Development Department, said the removal will not hurt Thai companies because the services will be limited to affiliated companies of foreign firms.
The three service businesses are lending services to affiliated domestic firms; office building rental services to local affiliate firms; and consulting services to affiliate firms for four activities: management, marketing, human resources and technological consulting.
The Foreign Business Commission meeting, chaired by the commerce permanent secretary, agreed on Sept 18 to withdraw the three services from List 3.
The move will not only improve efficiency and service quality of affiliated companies operating in Thailand, but also build a more business-friendly environment and facilitate trade and foreign investment.
Mr Vuttikrai said the department already submitted the proposal to Commerce Minister Sontirat Sontijirawong, who is expected to propose it to the cabinet by the beginning of next year.
After the cabinet’s endorsement, the proposal would be filed with the Council of State for vetting and approval. Upon approval, the commerce minister will issue a new ministerial regulation for publication in the Royal Gazette.
The FBA has three lists of activities in which foreign participation may be prohibited or restricted. Activities on List 1 are designated as “businesses not permitted for foreigners to operate due to special reasons”. Foreign companies are completely restricted from engaging in these activities.
Activities on List 2 are designated as “businesses related to national safety or security, or affecting arts and culture, traditional and folk handicraft, or natural resources and environment”. Foreign companies may only engage in these activities with prior cabinet approval.
Activities on List 3 are designated as “businesses in which Thai nationals are not yet ready to compete with foreigners”. Foreign companies must apply for and obtain a foreign business licence before taking part in these activities.
Source: https://www.bangkokpost.com/business/news/1562218/cabinet-to-mull-fba-cut-of-3-services