Business opportunities in Thailand are about to expand. The Thai cabinet has instructed ministries to amend laws restricting foreign ownership in certain business categories so the Kingdom can attract more investment, stimulate growth, and eliminate the illegal use of Thai “nominees” to mask a company’s true proprietors.

“This is particularly important for the startup sector, which typically requires new technology and increased investment from foreign sources,” said Deputy Government Spokesperson Karom Polpornklang.

Thailand has long been a preferred destination in the region for foreign investment. It regularly draws billions of dollars in foreign funds every year, including recent commitments by global tech giants to build data centers in the Kingdom.

Nonetheless, when investment first began pouring in during the 1980s, lawmakers and economists felt that Thai businesses in certain sectors and some professions were not ready to compete. The Foreign Business Act passed included a list of jobs and businesses reserved for Thais. Over the years, various administrations have slowly reduced the restrictions.

“The principle underlying the new rules will no longer be about protecting domestic business operators, but instead supporting them to enhance their capacity to compete with others, whether owned by Thais or foreigners,” said the Deputy Government Spokesperson.

The amendments are expected to ease the prohibition on foreigners owning more than 49 percent of businesses. U.S. citizens are exempt from that restriction because of the Treaty of Amity and Cooperation, which allows them to own 100 percent of businesses, a significant advantage for Americans.

The move to liberalize the economy even further was welcomed by many business leaders but opposed by some who fear they won’t fare well against competition. The amendments to the Act will need to be approved by Parliament, where the ruling Pheu Thai-led coalition holds a comfortable majority.

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