Bangkok: Associate Professor Dr. Chetha emphasizes that the recent easing of restrictions on eight types of foreign-invested businesses in Thailand is set to benefit consumers significantly, leading to reduced prices for goods and services due to heightened competition. This move is expected to attract technology, investment, and job creation, although it does not represent a completely unregulated free market.
According to Thai News Agency, Assistant Professor Dr. Chetha Sap-yen, a lecturer in the Department of Urban Administration and Management at Navamintrathirat Open University, commented on the government's progress in amending the ministerial regulations under the Foreign Business Act B.E. 2542 (1999). These amendments aim to facilitate foreign investment in eight business sectors. Dr. Chetha believes the government is on the right track, highlighting that these measures are not about unconditional liberalization but reducing redundant procedures in specialized businesses requiring high investment and technology.
The eight business types affected by these changes include telecommunications businesses without their own network infrastructure, financial management businesses, in-network management businesses, domestic debt guarantee businesses, petroleum drilling businesses, various forms of secured lending businesses under securities and derivatives contract laws, businesses acting as agents, dealers, consultants, or fund managers for derivatives contracts not subject to the Derivatives Contracts Act, and businesses providing rental space for the installation of electronic equipment and vending machines.
Dr. Chetha underscores that the initiative is not about allowing foreigners to do whatever business they want but about regulating the rules to align with the modern economy, reducing unnecessary bureaucratic procedures, and enabling Thailand to attract more foreign investment, technology, and expertise. He points out that these businesses require high capital investment and specialized knowledge, and have established regulatory systems, emphasizing that the goal is to facilitate documentation and processes, not eliminate controls.
The potential influx of foreign investments in these sectors is anticipated to lead to new investment, technology, jobs, and increased money circulation in the economy, particularly in telecommunications, finance, energy, and technology-critical infrastructure. From a consumer perspective, Dr. Chetha asserts that increased competition will lead to better services and fairer prices, compelling existing businesses to improve quality, pricing, innovation, and after-sales service.
Dr. Chetha provides examples, such as potential competitive energy costs and improved telecommunications services, resulting from increased market competition. However, he stresses that opening the door to foreign investment does not equate to abandoning regulation, as these businesses remain subject to specific laws and regulatory agencies, such as the NBTC, Bank of Thailand, SEC, and energy laws and regulations.
The government's action aims to reduce duplication in licensing procedures, not abolish regulations or allow foreigners to conduct business without conditions. Dr. Chetha highlights the importance of distinguishing between government facilitation and regulation, emphasizing that reducing bureaucratic procedures does not mean a lack of legal control.
Dr. Chetha concludes by stating that countries aiming to advance in the new economic era must embrace competition within the rules, adapting bureaucratic systems and regulations to keep pace with the world while maintaining specific laws to govern and regulate business activities.