Transcript of the above video:

As the title of this video suggests, we are discussing what appears to be a significant policy shift at play. I'm going to make a number of videos contemporaneously with this one going over this from various angles. But the first thing that I thought of when I first - and I'll get into the citation real quick - when I first read about this, was why are we doing this before a new Parliament is convened? This seems like something that would be better handled in Parliament. 

That said, let me get into this. I thought of making this video after reading a recent article from the Nation, that's nationthailand.com, the article is titled: DBD to tighten foreign business registration rules to curb nominee arrangements. Quoting directly: "The Department of Business Development is preparing tougher rules to prevent foreigners from using Thai nominees to register businesses. A new order is expected in mid-March to take effect on April 1, 2026." The thing to understand, nominees have always been illegal in Thailand; I've made a number of videos on this over the years. But that said, there's a difference between being a nominee and being a genuine component of a business. There's a big difference between those two things. 

I understand on a policy level what Thailand is trying to do here. They are trying, and I agree with it by the way, with the underlying policy thinking, which is protect the local business infrastructure, protect local jobs, insulate Thailand's economy; it's protectionism. And I know that's very passé with the World Economic Forum types of the world, but frankly, that's the basis of national sovereignty. You take care of your own. I agree with that on a policy level. That said, this constant push regarding nominees and structures with foreigners involved, while then at the same time trying to "encourage" foreign business, one, it's kind of for lack of a better term, and I'm not trying to be pejorative, this is just the only real description there is for it, it is kind of schizophrenic. Where on the one hand it's like chasing around a bunch of people who are just trying to do business and structure their businesses in compliance with relevant Thai Law, while then at the same time saying, "well we want to encourage investment." The two don't seem to be aligned with one another. That said, quoting further: "The Department will compile opinions on possible approaches and their potential impact to support the drafting of the "Office of the Central Company and Partnership Registration Order No. .../2026 on the rules and procedures for registration in cases involving amendments to designate foreigners as partners in partnerships or as authorized signatories in limited companies. The aim is to ensure the new rules are appropriate and effective and to further strengthen efforts to prevent and address nominee arrangements across various businesses." Quoting further: "Poonpong said nominee arrangements were a major issue affecting the country's business competition structure, making it necessary to strengthen supervisory mechanisms and enhance cooperation among relevant public and private-sector agencies. He said the Department was treating the problem of nominee businesses with utmost seriousness." 

Now as I'll get into in another video I am making contemporaneously with this one, for example the coconut industry here in Thailand seems to be suffering at the hands of undue foreign influence through use of corporate structures that involve foreign nationals apparently of Chinese extraction and they are basically playing leverage games, it's my understanding, and I don't have a full understanding of exactly what's going on, but apparently, through sort of I guess what you would call real time arbitrage, they're able to essentially suppress the prices of coconuts here in Thailand in order to gain some advantage in the broad open market outside of Thailand, that's my understanding. And basically these foreign interests are utilizing corporate structures to the detriment of Thai business, or Thai farmers, either/or, I understand the need to thwart that activity. That said, at a certain point where there's just this constant push and pull, and back and forth and constant scrutiny associated with doing business in Thailand, something at a certain point has got to give and people start saying, "well do I want to invest there?" Now there are means and methods of investing in Thailand notwithstanding the Foreign Business Act, and its requirements oftentimes of 49/51 foreign to Thai ratio of shareholdings. For example the US-Thai Treaty of Amity allows Americans to do business in Thailand with 100% corporate ownership. BOI for example may allow Foreign Business Certification to allow foreign nationals or foreign corporate interests to own businesses in Thailand presuming that they pass review and are granted a concession. The Eastern Economic Corridor has similar prerogatives and powers to be able to grant similar concessions. 

The point I am trying to make with this video though is I do really get the desire to protect the local economy. What worries me is constantly, for lack of a better term, be nitpicky. Having a 49/51 setup where you have got a Thai that owns 51% of the company is not per se nefarious or illicit: it's actually in compliance with relevant law. But then it's decided that well, complying with that is somehow inappropriate, so we are going to change the rules. If that happens too often, I worry that people will seriously question whether they want to do business here and that's my only worry in all of this is while I agree with the underlying notion, the underlying policy, is this the best method of dealing with this. That said, it remains to be seen how all of this plays out, so we will certainly be keeping you updated on this channel as the situation evolves.