Thailand Postpones Employee Welfare Fund Contributions to 1 January 2027
Thailand’s Employee Welfare Fund (“EWF“) introduces a new statutory contribution requirement for employers with 10 or more employees. EWF has been an important development for employers to monitor, with mandatory contributions previously scheduled to commence on 1 October 2026. However, the Thai Cabinet has now approved in principle a further three-month postponement, moving the proposed commencement date to 1 January 2027.
For more information, click here to read our Legal Update which provides, among others, the key issues that employers need to know in relation to the implementation of the EWF. Click here to read our Legal Update which outlines the EWF postponement and highlights the practical implications for employers preparing for the EWF.
TCCT Proposes Updates to Thresholds for Monopoly, Merger Notification and Market Dominance
The Trade Competition Commission of Thailand (“TCCT“) is proposing to update and modernise the competition law framework by amending the criteria for monopoly, merger notification and market dominance, essentially reducing the respective sales thresholds from THB1 billion to THB500 million. TCCT conducted public consultations from 22 September to 21 October 2026 on draft notifications effecting the above amendments.
The draft notifications set out the following proposed amendments:
- Permission for business mergers: The definition of “monopoly” in the existing notification on permission for business mergers is proposed to be amended to cover a market with only one operator that can independently set the prices and quantities of its goods or services and has sales of THB500 million or more.
- Merger notification: The definition of a “business merger that may result in a significant reduction of competition” is proposed to be amended, such that the merger notification requirement is triggered where sales of either one merging party or the merging parties combined in a given market are THB500 million or more, provided the merger does not result in a monopoly or market dominance. Sales of businesses related by policy or control are aggregated.
- Market dominance: It is proposed that, based on market shares and sales in the preceding year, a business operator will be deemed to have market dominance if it holds at least 33% market share and sales of at least THB500 million (single-firm dominance), or if two operators together hold at least 75% market share (joint dominance), with the latter criterion subject to a de minimis exception for operators below THB500 million in revenue or below 10% market share. Notably, for rapidly changing markets, markets with short-term demand or supply fluctuations, or markets operated through technology platforms, the quantitative thresholds do not apply; instead, dominance is assessed on qualitative factors such as barriers to entry, buyer power, and applicable regulations. Market shares and sales of businesses related by policy or control are aggregated.
The proposed THB500 million thresholds in the criteria for monopoly, market dominance and merger notification are a significant reduction from the current THB1 billion thresholds, and will greatly affect market players. Businesses must reassess impending proposed transactions against the new benchmarks if and when they come into effect.
For more information, click here to read our Legal Update
Thailand Introduces New Transition and Amber Bond Frameworks to Support Sustainable Finance
The Securities and Exchange Commission of Thailand (“SEC“) has introduced a new framework for “Transition Bonds” and “Amber Bonds” as part of a broader reform of Thailand’s sustainable debt market. The amendments, which took effect on 16 September 2026, are implemented through nine revised notifications issued by SEC and the Capital Market Supervisory Board, with the aim of supporting climate-transition financing while strengthening investor confidence in environmental, social, and governance (“ESG“) bonds.
Under the new framework, Transition Bonds can be used by companies that are working to reduce their environmental impact but are not yet considered “green”. These bonds must align with internationally recognised standards, including the Climate Transition Bond Guidelines issued by the International Capital Market Association (ICMA) or the Climate Bonds Standard issued by the Climate Bonds Initiative (CBI).
SEC has also introduced Amber Bonds, which can be used to finance activities classified as “amber” under the Thailand Taxonomy or activities that are not yet fully sustainable but are moving in the right direction to a lower-carbon economy. In other words, Transition Bonds focus on a company’s overall transition plan, while Amber Bonds focus on funding specific activities that are not yet fully green but are moving towards lower-carbon outcomes.
In addition, SEC has strengthened disclosure requirements for all ESG bonds. Issuers must disclose a bond framework and obtain an independent external review on the framework. SEC has also extended its ESG bond fee waiver programme to cover both new bond types until 31 May 2028.
The new framework is particularly relevant for high-emitting sectors, where achieving green classifications may take time and significant investment. By introducing frameworks designed to finance the transition to lower-carbon economy, Thailand is expanding sustainable financing opportunities beyond projects that are already green and enabling investors to participate in the decarbonisation journey of these sectors.
New Exemptions from the Foreign Business Licence Requirement
Effective 28 August 2026, the Ministerial Regulation Prescribing Service Businesses Exempt from the Requirement to Obtain a Foreign Business Licence (No. 5), B.E. 2569 (2026) (“MR No. 5“) and the Ministerial Regulation Prescribing Brokerage or Agency Businesses Exempt from the Requirement to Obtain a Foreign Business Licence, B.E. 2569 (2026) (“MR on Brokerage or Agency“) amended the categories of businesses exempt from the requirement to obtain a foreign business licence under the Foreign Business Act B.E. 2542 (1999) (“FBA“).
As a result, foreigners engaging in the businesses described below are no longer required to obtain a foreign business licence from the Department of Business Development, Ministry of Commerce. However, they remain subject to other applicable requirements under the FBA and related regulations, including minimum capital requirements, as well as the relevant sector-specific laws.
The exempted businesses include:
agency services for the trading of derivatives where the underlying goods or reference variables are not regulated under the Derivatives Act;
agency services for the trading of exchange rate or interest rate derivatives, where such trading is conducted outside a derivatives exchange;
derivatives businesses and related businesses under the Derivatives Act;
money lending for the purchase of securities;
the purchase of securities subject to a repurchase agreement;
telecommunications services under a Type 1 Telecommunications Licence;
treasury centre services under exchange control law;
administrative, human resources (HR) and information technology (IT) management services between related entities;
domestic credit guarantee services between related entities;
the leasing service of a portion of premises for installing electronic machines used in providing financial services and automated vending machines, for the convenience of the company’s employees; and
- petroleum drilling services for concessionaires, production-sharing contractors, or service contractors under the law governing petroleum.
In a further development, on 28 September 2026, a Royal Decree amending the business according to Clause 13 of List Three annexed to the FBA was published in the Royal Gazette. The Royal Decree amended the type of business related to internal trade of agricultural products to exempt the trade of such products in the futures exchange under the law on futures.
For more information, click here to read our Legal Update.
Thailand Strengthens Oversight of Data Centre Businesses
As the data centre sector continues to expand, Thai authorities have increasingly expressed concerns regarding the potential impact of data center operations on the country’s energy security, particularly electricity supply, water resources, and environmental sustainability.
In response to these concerns, on 13 August 2026, the Prime Minister, with the approval of the Cabinet, promulgated in the Royal Gazette the Regulation of the Office of the Prime Minister on the Data Center Business Policy Committee B.E. 2569 (“Regulation“), which provides for the establishment of the Data Center Business Policy Committee (“Committee“) comprising deputy chairpersons from relevant sectors.
In response to the Regulation, the Board of Investment (“BOI“) issued a press release announcing that BOI will review its investment consideration framework and strengthen the assessment of data center projects seeking investment promotion to align with the policy direction of the Committee. The BOI emphasised that the objective is not to reject data center projects, but rather to assess whether such projects generate sufficient value and benefits for Thailand.
Meanwhile, it is worth noting that BOI has been updating its investment promotion requirements for data center projects on an ongoing basis.
In addition to BOI, other regulators have also shown signs of increasing oversight of the data centre sector. In particular, the National Broadcasting and Telecommunications Commission is considering proposing five new licensing criteria for both new and existing data centre operators, covering matters such as zoning requirements, verification of utility service agreements, dedicated telecommunications infrastructure, e-waste management and clean energy obligations, and local content requirements.
Local authorities are also taking a more cautious approach. The Bangkok Metropolitan Administration has reportedly suspended further approvals for new large-scale data center projects in Bangkok pending revision of the applicable rules, reflecting concerns that such projects may need a more specific approval framework covering land use, safety, utility consumption, backup fuel storage and environmental impacts.
Similarly, energy-related measures are expected to remain central to the emerging framework. Following the resolution of the National Energy Policy Committee regarding electricity measures, several initiatives relevant to data center operators have been introduced.
For more information, click here to read our Legal Update.
New DBD Rule Enhancing Documentary Requirements for Company Registration to Prevent Nominee Arrangements
On 14 July 2026, the Department of Business Development (“DBD“) issued Order of the Central Partnership and Company Registration Office No. 2/2569 (“New Order“). The New Order took effect on 1 August 2026 and repealed the previous orders (i.e. Order Nos. 2/2568 and 1/2569) issued in December 2025 and March 2026, respectively. The New Order forms part of DBD’s ongoing efforts to strengthen the company registration process and prevent the concealment or disguise of financial transactions arising from nominee arrangements.
The New Order continues to impose enhanced documentary requirements for company incorporation applications involving (i) companies with foreign shareholdings of less than 50%, and (ii) wholly Thai-owned companies proposing to appoint a foreign national as an authorised director.
The New Order further extends these requirements to post-incorporation applications to amend a company’s authorised directors, where all existing authorised directors are Thai nationals but the proposed amendment would result in a foreign national becoming an authorised director.
A key takeaway is that DBD continues to intensify its scrutiny of company registration applications involving foreign shareholders and foreign directors as part of its ongoing efforts to prevent nominee arrangements and enhance transparency in corporate registrations. Companies planning to incorporate in Thailand should ensure that all additional supporting documents required from 1 August 2026 onwards are prepared in advance to minimise the risk of delays in the registration process.
For more information, click here to read our Legal Update.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
