After several years of policy discussion and continued efforts led by the Ministry of Commerce (MOC) to relax the list of reserved businesses under the Foreign Business Act B.E. 2542 (1999) (FBA), the reform process has now reached a significant milestone. On May 12, 2026, the Thai cabinet approved in principle two draft subordinate legislative instruments aimed at delisting certain reserved business activities under the FBA and reducing licensing requirements for foreign business operators. These developments signal a renewed and concrete effort by the government to modernize Thailand’s business regulatory framework in order to attract foreign investment and boost Thailand’s competitiveness in the global market. Nine Businesses Set for FBA Delisting Below is a list of the nine businesses that are being targeted for delisting from the FBA’s restrictions. A draft ministerial regulation would delist the first eight reserved businesses, while a royal decree has been drafted to delist the ninth business: Telecommunications services (Type 1 license only, covering operators without their own telecommunications infrastructure), under the supervision of the Office of the National Broadcasting and Telecommunications Commission. Treasury center services subject to the Foreign Exchange Control Act B.E. 2485 and under the supervision of the Bank of Thailand. Securities-collateralized lending, pursuant to the laws governing securities and exchange and derivatives regulated by the Securities and Exchange Commission. Agency, dealer, advisory, or fund management services relating to derivatives where the underlying assets fall outside the scope of the Derivatives Act B.E. 2546 (2003) Intra-group shared services, including administrative, human resources, and IT functions Intra-group domestic debt guarantee services Leasing of partial space for installation of financial service machines and automatic vending machines for employee use Petroleum drilling services Trading of agricultural product derivatives through a futures exchange, with physical delivery or receipt of agricultural products at a futures exchange–designated

Thailand’s rise as a regional hub for luxury retail has influenced how market entry is structured and assessed across Southeast Asia. As brands consider establishing a presence in the market, regulatory and operational considerations form a key part of the overall entry assessment. Foreign Ownership Restrictions for Retailers Foreign investment in retail activities is subject to a relatively extensive regulatory framework, particularly in relation to foreign ownership and the approvals required under the Foreign Business Act B.E. 2542 (1999) (FBA). Under the FBA, a company is generally regarded as foreign if 50% or more of its shares are held by non-Thai nationals, in which case the business is required to obtain a foreign business license (FBL) issued by the director-general of the Department of Business Development, with the approval of the Foreign Business Committee. The committee will not grant an FBL unless it is convinced the proposed business demonstrates unique characteristics such as a distinctive business model, innovative processes, specialized services or products, or a clear competitive differentiation that will benefit Thailand; constitutes a highly specialized business or requires specialized technology or expertise; and will not compete with Thai business operators who engage in the same business. The committee makes its decisions on a case-by-case basis depending on the circumstances, which can make the licensing process less predictable in practice. However, there are also alternative pathways for consideration, including exemptions in specific circumstances. For example, foreign-owned businesses in Thailand with at least THB 100 million in registered capital are allowed to open five retail stores in the country. Some businesses may also be able to access preferential treatment under international agreements and treaties between Thailand and certain foreign states, subject to eligibility requirements. Structural and Business Model Challenges The determination of what constitutes a “retail store” may itself present

Thailand’s Board of Investment (BOI) has introduced a new investment promotion measure to encourage partnerships between Thai and foreign automotive parts manufacturers. The measure, published in the Government Gazette on March 31, 2026, under Notification of the Board of Investment No. 5/2569 Re: Investment Promotion Measures for Joint Ventures between Thai and Foreign Companies in the Auto Parts Manufacturing Industry, aims to enhance local industry participation and create new business opportunities for Thai operators. Corporate Income Tax Exemption Under this measure, the BOI grants an additional corporate income tax (CIT) exemption of three years to both new investment projects and existing operators under the BOI’s business category 3.4 (manufacture of engines, equipment, or parts) or category 3.5 (manufacture of vehicle parts). If the CIT exemption period is added to an existing one, the total exemption period will be capped at a maximum of eight years. To benefit from the exemption, certain conditions must be met, as described below. Conditions for New Investment Projects The joint venture company must be newly established after January 15, 2026. At least 20% of the registered capital must be held by a Thai juristic person throughout the CIT exemption period. The Thai juristic person must have been operating in the automotive or auto parts industry for at least three years prior to the application date and must be at least 60%-owned by Thai individuals. Conditions for Existing BOI-Promoted Projects The company must have been wholly foreign-owned at the time the promotion certificate was issued. The shareholding structure must be amended following the issuance of the notification to establish a joint venture between a foreign juristic person and a Thai juristic person that has been operating in the automotive or auto parts industry for at least three years prior to the application date. This Thai

Tilleke & Gibbins has contributed the Cambodia, Laos, Myanmar, Thailand, and Vietnam chapters to Infrastructure and Construction in Southeast Asia, a comparative guide developed by Drew Network Asia (DNA). The publication brings together insights from leading ASEAN law firms to address common legal and practical issues faced by participants in the construction and engineering sector across the region. Covering nine major Southeast Asian jurisdictions, the guide provides concise answers to frequently encountered questions relating to infrastructure and construction projects. Topics addressed include the regulatory environment, procurement practices, project structuring, risk allocation, contracting terms, dispute resolution mechanisms, and the enforcement of arbitral awards. Each jurisdictional chapter follows a consistent question-and-answer format, enabling readers to compare legal approaches and market practices across countries. This structure highlights both areas of convergence and key differences between jurisdictions, supporting more informed decision-making in cross-border projects and investments. While the guide offers a practical regional overview, it also underscores that legal frameworks and market practices vary significantly between jurisdictions and may be shaped by local principles and industry norms. Readers seeking jurisdiction-specific advice are encouraged to contact the practitioners listed at the end of each chapter. The full guide is available for download through the button below or directly from the DNA website.