With virtually all business operations in Thailand affected by the fallout of the COVID-19 pandemic, the government has been keen to provide relief measures to limit the economic damage. In addition to implementing broad economic relief, this has also meant changes to the government’s own internal operations, and in recent months, the Public Procurement and Supplies Administration Ruling Committee has issued two circular letters prescribing guidelines on how government authorities should handle their procurement operations during this period. The circulars, which were issued under the Public Procurement and Supplies Administration Act B.E. 2560 (2017), detail the relief measures for government procurement contracts that cannot be fulfilled because of the disruptive effects of the COVID-19 pandemic. Most significantly, the circulars clarify that the impact of COVID-19 should be deemed force majeure under government procurement contracts and government procurement law, which affects the penalties levied on contractors for late performance of required duties under government procurement contracts. The Ruling Committee specified the start of the force majeure period as March 26, 2020 (the date when the government first announced a nationwide state of emergency). This official designation enables contractors to cite disruption from COVID-19 when requesting additional time to perform their duties under a contract, or exemption from or reduction of penalties incurred due to the delay. For contracts that have not yet reached their maturity date, the Ruling Committee granted relief measures by directing the relevant government authorities to count the number of days that COVID-19 has affected performance of the contract, and use this number as the basis for determining an extension of the timeframe for performing the contractual duties. For contracts that have already reached their maturity date, the contractual party that failed to perform according to the contract would normally be subject to an assessed fine for

On November 2, 2020, it was widely reported by Thai media that Thailand’s Department of Business Development (DBD) has drafted ministerial regulations that would remove telecommunications, treasury center activities, and software development businesses from List 3 of the  Foreign Business Act (FBA). If enacted, these regulations would effectively mean that foreign entities (such as a foreign-majority-owned company) would no longer need to obtain permission from the DBD’s director-general and the Foreign Business Commission before engaging in these activities.

Thailand’s Official Receiver recently issued an important announcement relevant to all existing or potential creditors of Thai Airways International Public Company Limited (“Thai Airways International”). The announcement details the Central Bankruptcy Court’s Order for rehabilitation of Thai Airways International and was published in the Royal Gazette on October 2, 2020.

The economic downturn in Thailand has resulted in increased pressure on Thai debtors. Several banks have forecasted Thailand’s gross domestic product (GDP) to contract 8.1 percent in 2020 due to a more severe than expected COVID-19 pandemic and the containment measures implemented by governments in many countries including Thailand.