On September 15, 2021, Thailand’s Securities and Exchange Commission (SEC) announced a prospective new scheme that will enable small and medium enterprises (SMEs) and startups in Thailand to raise funds through public offerings. The SEC regulations to implement this new scheme are expected by the first quarter of 2022. Since 2019, the SEC has allowed SMEs and startups in Thailand to raise funds via private placements or crowdfunding. The new SEC scheme will allow SMEs and startups to raise funds on a larger scale via a new type of public offering (the so-called SME-PO). The SEC also plans to establish the “SME Board,” a secondary market for trading the stocks of SMEs. Under the new SEC scheme, SMEs and startups that wish to proceed with an SME-PO must be structured as public companies with investor protection mechanisms in accordance with the Public Company Act B.E. 2535 (1992). Although SEC representatives have previously indicated that SME-POs would be subject to an information-based approach instead of the normal approval process for public offerings, the September 15 announcement does not detail this further, beyond noting that the SEC may deem it appropriate in future to relax certain requirements such as filing for approval, appointment of an independent financial advisor, and fees. Investors in public offerings for SMEs and startups must be sophisticated investors who are risk-tolerant and well capitalized, such as institutional investors, private equity or venture capital firms, angel investors, or an SMEs’ own directors, employees, or affiliates. Tilleke & Gibbins will continue to follow the development of regulations for SME-POs, as the rules and criteria described here are still subject to change. For more information on fundraising alternatives for SMEs and startups, or on any aspect of capital markets regulations in Thailand, please contact Onunya Chanpen at [email protected] or Kobkit Thienpreecha at [email protected]

Thailand’s Ministry of Interior has issued new regulations requiring owners, occupants, and operators of certain types of buildings to obtain third-party life, body, and property liability insurance. The Ministerial Regulations Prescribing the Type or Category of Buildings Which Must Apply for Legal Liability Insurance B.E. 2564 (2021) were announced in the Government Gazette on September 6, 2021, and will come into effect on November 5, 2021. The new regulations, which repeal and replace similarly titled regulations from 2005, detail third-party liability insurance rules, procedures, conditions, and minimum insurance amounts for specific building types and activities. The new regulations clearly distinguish the building use phase from the construction, modification, relocation, and demolition phases. They also add a new requirement for the owner, occupant, or operator of large buildings to apply for third party liability insurance during the construction, modification, relocation, and demolition phases. Building Construction, Modification, Relocation, and Demolition When a permit for construction, modification, relocation, or demolition is granted for a building classified as a high-rise, large, or extra-large building, the owner, occupant, or operator who obtained the permit must apply for third-party liability insurance before work begins. If work is already in progress when the regulations come into effect, the permit holders will have 30 days to apply for third party liability insurance covering the remainder of the period specified in the permit. Building Usage Owners or occupiers of public assembly buildings, hotels with more than 80 rooms, entertainment venues of 200 square meters or more, and large freestanding or building-attached signboards and support structures must also apply for third party liability insurance covering accidents related to the condition or use of the structures. Owners or occupiers have 30 days from the completion of the construction, modification, relocation, or change of use of the buildings, as the case may be, to apply for third-party liability insurance. Owners or occupiers of existing structures must apply for the required coverage within 30 days from the effective date of the new regulations. Insurance Minimums The regulations set the following minimum coverage amounts for third-party liability insurance: Bodily injury or loss of life – THB 100,000 per person Medical expenses – THB 100,000 per person Property damage – THB 500,000 per incident Bodily injury/loss of life coverage and medical expense coverage must have a combined total of at least THB 5 million per incident. The policyholder must retain proof of insurance coverage (in hard copy or electronic format) and provide it to the relevant authorities on request. Failure to do so could result in imprisonment for up to three months, a fine of up to THB 60,000, or both—as well as a penalty of up to THB 10,000 per day until compliance is achieved. If a juristic person’s violation is caused by the order, action, or neglect of a director, manager, or person responsible for the juristic person’s operations, that person will also be liable to the above punishments.

With the wide availability of vaccines in Cambodia, some employers are considering whether to mandate workers to get vaccinated against the coronavirus, prompting the question: What are the legal risks and implications of such a mandate in Cambodia?

The process of registering pesticide products in Myanmar has been slowed significantly by regulatory challenges since the enactment of the Pesticide Law in 2016. In some cases, the whole process can take almost three years. Nonetheless, this stringent and time-consuming process has been functioning smoothly, and Tilleke & Gibbins has successfully received approvals from the Pesticide Registration Board (PRB) despite the ongoing COVID-19 pandemic and state of emergency in the country. Overview Since its enactment, the Pesticide Law of 2016 has governed the regulation of local and imported pesticides under the oversight of the Plant Protection Division (PPD) and the joint secretary of the PRB. All foreign and domestic companies (including subsidiaries and joint ventures) looking to have their agricultural or household pest control products imported into Myanmar must first provide the products’ complete formulas and lists of active ingredients to the PPD, and apply for a pesticide registration certificate. Applications should be supported by a letter of consent from the manufacturer and various other technical documents and requirements. Experts at the PRB will review the technical dossier and inform the applicant if any re-submissions are required. Key Considerations One common cause of delay in the registration process is the requirement to submit both English and Myanmar translations of proposed labels to the PRB. Because the PRB takes a restrictive view of these labels and their translations, having the labels initially reviewed by a local regulatory expert familiar with the requirements will streamline the process by flagging potential issues for correction before submission to the PRB. After document submission is complete, the next stage of the process is further lab testing according to requirements set out by the Myanmar Pesticide Law. Applicants will need to supply the formulated product in an amount sufficient for carrying out supervised trials and quality control tests. There are also detailed technical specifications regarding the necessary laboratory testing, sample analysis, and certification of the product and its active ingredients. In order to import the necessary products to conduct these laboratory tests, the applicant must obtain a recommendation letter from the Laboratory Department of the PPD and pay the required laboratory fees. Applicants should also create the label at this time. Typically, a label should include hazard pictograms (symbols) along with usage directions, the names of the manufacturer and distributor, and the expiry date—all in the Myanmar language. This label must be approved by the PPD. Upon completion of the laboratory tests, the PPD assists with evaluation of the technical documents, corresponding test results, and reviewed labels. The results of the PPD’s evaluation will then be submitted to the PRB, which will finally decide whether to approve the application and grant the applicant experimental, provisional, or full registration. Upon payment of the registration fees, an experimental registration is valid for two years, a provisional registration is valid for five years, and a full registration is valid for ten years. Some applications are rejected after PRB meetings due to a lack of required documentation, use of a banned active ingredient (aldrin, arsenic compounds, binapacryl, etc.), or a determination that the product is hazardous for the country’s agriculture. Outlook Though it is time consuming and laborious, the registration process for pesticide products in Myanmar has proved to be effective and functional. Moreover, the stringent application of the requirements has shown that Myanmar takes the issue of pesticides seriously, and will take time to scrutinize the introduction of new pest control substances for agricultural and household use. The PPD recently announced an online application system that will expedite the final evaluation process by eliminating some bottlenecks caused by the current reliance on physical documents and in-person procedures. Altogether, the encouraging indications—including Tilleke & Gibbins’ repeated success in the registration process, and the authorities’ diligence in following the registration process—signal that companies looking to make their pesticide products available in Myanmar have a viable avenue for doing so safely and responsibly.