Cabinet to consider draft financial centre act to draw investments

The Finance Ministry aims to propose a draft financial centre act to the Cabinet in February in a bid to attract investments from eight businesses and promote Thailand as a financial hub.

Deputy Finance Minister Paopoom Rojanasakul said on Wednesday that this plan aligns with the government’s policy to promote Thailand as a financial hub, which would boost the country’s competitiveness in the global financial market.

The public hearing for the draft financial centre act has been completed, and would be proposed to the Cabinet for consideration at least in early February, he said.The draft act aims to attract investment from eight businesses in Thailand and overseas: commercial banks, payment service, securities, future exchange, digital assets, insurance, reinsurance brokers, and financial related business.

The aforementioned business operators can collaborate with companies in Thailand on providing services under Thai laws and regulations, such as foreign exchange control laws and measures to prevent speculation on the baht.

They will receive tax and non-tax privileges in return, such as exemption from the Foreign Business Act and ownership of condominiums for business and residential purposes.To achieve the goal of becoming a financial hub and attracting investment, the office of the financial institution commission would be established to implement policies, guidelines and regulations for supervision.

Its committee would comprise executives from 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.

“Developing Thailand into a regional financial centre will attract investment from financial institutions abroad, connect the Thai financial system with CLMV countries [Cambodia, Laos, Malaysia and Vietnam], and allow more financially skilled workers from abroad to work in Thailand,” Paopoom said.

He added that this draft financial centre act would further develop financial business and create jobs in Thailand, as well as promoting skill and technology sharing for Thai workers.

(2025/01/22-00:00)