Thailand is taking steps to establish itself as a regional financial hub through new legislation aimed at attracting investment in key financial sectors. The Cabinet has approved the draft Financial Centre Act, proposed by the Finance Ministry, with the objective of enhancing the country’s competitiveness and strengthening its role in the global financial landscape. The draft will now be reviewed by the Council of State.
The proposed legislation is designed to encourage investment in eight financial sectors, both domestic and international. These include commercial banking, payment services, securities, futures exchange, digital assets, insurance, reinsurance brokerage, and other finance-related businesses. Under this framework, financial operators will be able to collaborate with Thai companies while adhering to existing regulations, such as the Foreign Exchange Control Act, and measures to prevent currency speculation.
To attract businesses, the act offers various tax and non-tax incentives. These include exemptions from certain legal restrictions, such as the Foreign Business Act, as well as property ownership rights for business and residential purposes.
A financial institution commission will be established to oversee the implementation of policies, regulations, and supervisory measures. This office will function as a one-stop service and report directly to the government. The commission is expected to include representatives from key financial and regulatory bodies, such as the Finance Ministry, Bank of Thailand, Securities and Exchange Commission, Office of Insurance Commission, Council of State, Anti-Money Laundering Office, and Board of Investment.
(Source: The Nation)
