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07
2025
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05
Thailand to Amend Foreign Business Act, Relax Foreign Equity Limits, and Create a Better Investment Environment
Author:
Betsey
Release time:
2025-05-07
According to Thai media reports, the Thai Cabinet has approved amendments to the Foreign Business Act to reduce restrictions on foreign investment and make Thailand's business environment more favorable for investors.
The current Foreign Business Act in Thailand has a 25-year history and was implemented in 1999, shortly after the Asian financial crisis severely hit the Thai economy. Against this backdrop, the Act was established with the dual purpose of protecting the country's fragile industries from rapid foreign capital inflows while attracting foreign investment.
However, it is now considered to excessively protect Thai business operators, significantly affecting foreign investment in Thailand and failing to adapt to the current global development landscape. Therefore, the Thai Cabinet instructed the Ministry of Commerce on April 22 to draft amendments to remove regulations hindering national economic development.
The revision of foreign equity ownership ratios has drawn particular attention.
Under the current law, the maximum foreign equity ownership ratio is capped at 49%, and many types of businesses are restricted to Thai citizens only. This 49% cap has led to numerous cases where foreigners appoint Thai agents to hold shares on their behalf.
It is expected that this revision will also take into full consideration the challenges faced by foreign investors regarding equity ratios and their development in Thailand.
Prior to this amendment, Thailand had already relaxed policies in certain sectors. For example, the Ministry of Finance introduced new regulations allowing life insurance companies facing operational or financial difficulties to exceed the 49% foreign equity cap and permit foreigners to hold a majority of board seats. In the real estate sector, the Thai Cabinet significantly increased the foreign ownership limit in condominium projects from 49% to 75%. This policy adjustment aims to attract more foreign investors into Thailand's real estate market and alleviate the current downturn.
These measures demonstrate that Thailand remains welcoming and proactive toward foreign investment. Relevant Thai authorities are genuinely addressing the practical needs of foreign enterprises and taking steps to help them establish a stronger presence in Thailand.
Thailand's Deputy Government Spokesperson Karoon stated that start-ups will benefit most from this amendment, as they typically require new technologies and increased foreign investment. Under the current law, as start-ups grow and their capital increases, the Thai ownership ratio often declines, putting many at risk of being classified as foreign companies and facing legal restrictions. This has significantly hindered the expansion and innovative development of Thai start-ups.
After approving the amendment proposal, the Cabinet has instructed the Ministry of Commerce to draft the amendments as soon as possible. The formulation of new rules will shift from purely "protecting" domestic business operators to "supporting" them in enhancing their competitiveness, enabling them to engage in fair competition with both domestic and foreign enterprises.
With the relaxation of foreign investment restrictions under this amendment, it will be more conducive for Chinese enterprises to invest in Thailand.
贝西国际
Betsey International is a global leading one-stop comprehensive service provider for industrial and commercial real estate, specializing in corporate services such as strategic development consulting, real estate agency investment promotion, property management agency, and facility management.
Upholding the service philosophy of "customer-centric," the company has developed targeted support strategies to address the policy, legal, and cultural challenges enterprises face in global development. It has established professional teams in multiple countries and regions to conduct in-depth research on local investment promotion policies, providing comprehensive support to enterprises.
The founding background and business scope of Betsey International demonstrate its rich experience accumulated in the "overseas warehouse" sector of industrial and warehousing real estate. The company is committed to meeting the needs of domestic and international clients through innovative service models.
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