Thailand Intensifies Nominee Measures to Protect Investors

Thailand's Department of Business Development (DBD) has explained that it is implementing proactive measures to address the issue of nominee ownership by foreigners in businesses. This problem refers to cases where foreign capital operates businesses by borrowing the names of Thai citizens to circumvent restrictions on foreign ownership stipulated by Thai law. Such practices have long been a concern, as they can distort Thailand's fair competitive environment and hinder the development of domestic industries. The DBD plans to strengthen its monitoring system to identify and crack down on nominee activities. Specifically, it intends to eliminate fraudulent nominee arrangements by tightening scrutiny during new business registrations and conducting regular on-site investigations of existing businesses. Furthermore, strengthening penalties for individuals and corporations involved in nominee activities is also under consideration. This aims to enhance deterrence and improve the overall credibility of Thailand's business environment. This explanation from the DBD indicates the Thai government's focus on maintaining a healthy domestic economy and fair competitive conditions, while simultaneously attracting foreign investment. In particular, improved transparency is a crucial element in providing a more secure investment environment for foreign investors from a long-term perspective.