Thailand moves to become regional financial hub with new legislation

Cabinet approves the draft Financial Centre Act, which will attract investment in key financial sectors by offering tax incentives, exemptions and property ownership rights

The Cabinet on Tuesday approved the draft of the Financial Centre Act in principle as proposed by the Finance Ministry, Prime Minister Paetongtarn Shinawatra told the press after the Cabinet meeting.

The draft will be forwarded to the Council of State for revision, she added.

Paetongtarn said the law aims to turn Thailand into a regional financial hub and a key player on the global stage, as well as to enhance the country’s competitiveness. 

The Finance Ministry had earlier revealed that the draft act aims to attract investment from eight financial businesses in Thailand and overseas, including commercial banks, payment services, securities, futures exchange, digital assets, insurance, reinsurance brokers, and finance-related businesses.The operators of these businesses can collaborate with companies in Thailand on providing services legally, under laws such as the Foreign Exchange Control Act, as well as within measures to prevent speculation on the baht.

In return, they will receive tax and non-tax privileges, such as an exemption from the Foreign Business Act and the right to own condominium units for business and residential purposes.

To achieve its goal of becoming a financial hub, a financial institution commission will be set up to implement policies, guidelines and regulations for supervision. The office will serve as a one-stop service, reporting directly to the government.

The committee should 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.

(2025/02/04-00:00)