Thailand: Cabinet approved proposal to amend the Foreign Business Act B.E. 2542 (1999) to encourage foreign investment in local businesses

On 22 April 2025, the Cabinet of Thailand approved a proposal to amend the Foreign Business Act B.E. 2542 (1999), assigning the Ministry of Commerce to prepare a draft revision of the law that shifts its focus from the “protection” of domestic entrepreneurs to the “enhancement of competitiveness potential”. The proposed revision would include a review of existing restrictions on foreign shareholding and limitations on specific business sectors for foreign entities, taking into account current economic conditions and technological developments. The amendment process is intended to adjust regulatory conditions affecting investment, trade, and business operations. The stated objective is to revise entry and ownership rules in a manner that could affect gross domestic product (GDP), employment, and tax revenue by modifying the regulatory environment applicable to innovation-oriented and technology-based businesses.