InfoQuest (September 26, 2019) -- Mr. Poonpong Naiyanapakorn, deputy director-general of the Business Development Department, chaired the panel meeting on reviewing business types in List 3 of the Foreign Business Act (FBA) (1999).
The panel proposed to the Foreign Business Committee to remove four businesses from the list. These businesses include telecommunication services for license type 1 (without a dedicated network), treasury centers, aircraft maintenance services for aircraft under the Air Navigation Act (1954) and their equipment, and development of high value-added software.
Mr. Poonpong said the removal of these businesses from the list would make it easier and cheaper for foreign companies to apply for business licenses in Thailand. It will also help make it more convenient for operating businesses in Thailand and create a sound business environment to woo foreign investors and international talents to jointly promote the development of Thailand.
"Such a move reflects that Thailand is ready to compete with others in these fields. Opening up the four businesses will attract more foreign companies to set up development and maintenance centers in Thailand. This will further drive economic growth, promote Thailand to realize the transition to the digital economy, and create technology transfer opportunities, so as to improve the competitiveness of Thai enterprises in the overseas market", said Mr. Poonpong.
In addition, the four businesses are also in line with Thailand's overall economic situation and national economic development. Specifically, aircraft maintenance services and development of high value-added are in alignment with the government's 10 target industries, and aviation and logistics and digital industry in the New Engine of Growth and the New S-Curve industries.
Meanwhile, three out of the four business sectors already have had their own regulating laws. Removing them from the Foreign Business Act's list should therefore reduce overlapping jurisdiction with other agencies. For example, the telecommunication business is already under the regulations of the Telecommunications Business Act (2001) of the National Broadcasting and Telecommunication Commission (NBTC). While the treasury management business is monitored by the Bank of Thailand (BOT) under the Exchange Control Act (1942). The act stipulates that this type of business shall obtain a license issued by the Ministry of Finance and comply with the standards made by the BOT. As for the aircraft service business, it is supervised by the Civil Aviation Authority of Thailand (CAAT) under the Air Navigation Act (1954).
"Removing these businesses from the list is a response to Thailand's Plus Package policy and Thailand 4.0 policy. This move aims to facilitate foreigners to operate businesses in Thailand, and reduce investment barriers, thus building Thailand into one of the most attractive investment countries in Asia and beyond. I believe it will not be a difficult task to make Thailand the economic center of ASEAN, as it enjoys superior geological position and efficient economic infrastructure too", Mr. Poonpong said.
Source: InfoQuest, by Phana / Tanawat/ Rachada, translated by Xinhua Silk Road
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.