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Thailand to pare 7,000 business rules to lure foreign investment

Randy Thanthong-Knight / Bloomberg
Randy Thanthong-Knight / Bloomberg • 2 min read
Thailand to pare 7,000 business rules to lure foreign investment
The effort was detailed in a government statement on Monday and comes as Thailand risks losing ground to regional rivals such as Vietnam and Indonesia.
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(May 18): Thai Prime Minister Anutin Charnvirakul’s government plans a sweeping reform of more than 7,000 business regulations, aiming to cut bureaucratic hurdles and accelerate investment as it tries to compete for global capital.

The planned rollback of ministerial rules and secondary regulations, many of which have accumulated into a significant burden on companies, marks a concerted push to reposition Thailand as a more competitive destination for multinational firms reconfiguring supply chains.

The effort was detailed in a government statement on Monday and comes as Thailand risks losing ground to regional rivals such as Vietnam and Indonesia, which have moved more aggressively to streamline regulatory regimes and court foreign capital.

“Regulations intended to guide have, in practice, become costs,” said government spokeswoman Rachada Dhnadirek. She said the initiative signals a broader shift in policy: away from a control-oriented bureaucracy towards a more facilitative state.

The reform will also include a proposed “super licence” system that would consolidate multiple permits into a single approval. In a nod to business concerns, the government has asked leading industry groups to identify 10 to 20 of the most pressing regulatory obstacles, with proposals due in early June.

Early evidence suggests red-tape reduction is supporting investment. Thailand’s Board of Investment reported an 18% rise in investment in the first quarter, helped in part by a “Fast Pass” programme designed to speed approvals.

See also: Sea’s shares surge 13% after gains in Asian fight with Alibaba

Last Friday, Anutin hosted some of the country’s top billionaires and industry titans for a rare discussion on the economy. The gathering focused on investment, competitiveness, employment and long-term growth strategies.

Uploaded by Tham Yek Lee

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