Cabinet preps Financial Hub Bill draft
According to Deputy Finance Minister Paopoom Rojanasakul, the Council of State has already completed its review of the draft law. The next step will be to present it to parliament for consideration in its first reading.
"This draft law will establish an ecosystem that aligns with the needs of global financial companies," said Mr Paopoom.
The proposed Financial Hub Act aims to elevate Thailand into a regional financial centre by overhauling the licensing and regulatory framework under the Financial Hub initiative, making it comprehensive and business-friendly.
The draft law is designed to attract investment by streamlining operations and establishing a central agency to set policies that promote Thailand as a financial hub.
It also lays out strategies to develop the financial industry ecosystem, including workforce development and infrastructure improvements to meet the demands of leading global financial firms.
The draft law will define target businesses within the Financial Hub and establish the Office of the Regulatory and Promotion Committee for the Financial Business Hub as a One-Stop Authority (OSA).
It will define qualifications for business operators, licensing procedures, investor incentives and regulatory frameworks that are efficient and aligned with international standards.
The draft law approved by the cabinet contains nine chapters and 94 sections, including General Provisions, which specifies the effective date of the Financial Hub Act and relevant definitions.
Chapter 1 – Regulatory and Promotion Committee for the Financial Business Hub, which outlines the structure and authority of the committee responsible for comprehensive oversight of the Financial Hub, including setting business guidelines, issuing licences, inspecting operations and revoking licences.
Chapter 2 – Office of the Committee, which establishes the OSA to provide one-stop services and facilitate businesses in licensing and receiving incentives.
Chapter 3 – The director, who specifies qualifications and the appointment process for the executive managing the Office.
Chapter 4 – Licensing of Target Businesses, defining types and scopes of businesses eligible for licences, and the characteristics of legal entities seeking to operate within the Financial Hub.
Chapter 5 – Promotion of Incentives, outlining the benefits and incentives available to businesses established under the Financial Hub framework.
Chapter 6 – Supervision of Businesses under Promotion, establishing regulatory standards for businesses within the Financial Hub, covering financial institutions, securities firms and insurance businesses, aligned with current regulatory practices.
Chapter 7 – Officials, granting officials the authority to inspect the operations of businesses within the hub.
Chapters 8 and 9 – Administrative Sanctions and Criminal Penalties, setting forth penalties for non-compliance with the Act's rules and conditions.
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Bangkok Post
4 days ago
- Bangkok Post
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Thailand will not agree to reduce tariffs to zero on all US goods in ongoing trade talks, as such a move could significantly impact domestic producers and strategic industries, Deputy Finance Minister Paopoom Rojanasakul said. Speaking ahead of a scheduled meeting between the "Team Thailand" delegation led by Finance Minister Pichai Chunhavajira and the Office of the United States Trade Representative (USTR) on Thursday, Mr Paopoom emphasised the need to strike a balance between protecting exporters and safeguarding local producers, including farmers and small businesses. "The winner in negotiations is not the one who gets the lowest tariff, but the one who can maintain the most balanced outcome," said Mr Paopoom. He revealed that current reciprocal tariff rates on Thai exports to the US average around 36%, and discussions are ongoing to secure more favourable terms. However, he warned that any concessions made to reduce US tariffs would inevitably come with expectations for increased market access in return -- something that could pose risks to Thailand's local industries. "It's not just about securing a lower tariff rate," he said. "We must consider the impact on domestic sectors. Nothing comes without a cost. If we want the US to lower tariffs, we must offer access to our markets in exchange." Mr Paopoom stressed that Thailand could not adopt a blanket zero-tariff approach similar to Vietnam's, as this would require full market access for US goods. "We must weigh the benefits against the potential harm. He noted that while the export sector plays a significant role in the country's GDP, the government must also consider the well-being of farmers, SMEs, and domestic livestock producers. "Thailand is not made up of exporters alone. We have to look after all segments of society." The deputy finance minister clarified that strategic products -- those critical to national interests -- would need to be excluded from zero-tariff commitments. Overexposing local markets to foreign goods could disrupt domestic supply chains and damage the competitiveness of Thai producers. In addressing comparisons with Vietnam, Mr Paopoom explained that Vietnam receives two distinct tariff rates under US trade policy: 20% for goods made with domestic or regional inputs that meet Regional Value Content (RVC) requirements, and 40% for those that do not. Given that Vietnam's supply chain is less developed than Thailand's, he noted that a larger proportion of Vietnamese exports are likely subject to the higher 40% tariff. Commerce Minister Jatuporn Buruspat has confirmed that Thailand has offered to reduce import tariffs on tens of thousands of products from the US to zero. Additional proposals have also been submitted. As trade talks continue, the Commerce Minister has instructed relevant agencies to draft contingency plans to mitigate the potential impact of any retaliatory tariffs that may be imposed by the US. Mr Jatuporn said the government is preparing for two scenarios -- one in which Thai goods are subject to a 36% tariff rate and another in which they receive a 20% tariff rate, equivalent to that offered to Vietnam, a regional competitor. Chanintr Chalisarapong, vice chairman of the Thai Chamber of Commerce, told Bloomberg News that Thailand plans to scrap tariffs on 90% of US goods, up from the previous 60%. The proposal, covering 10,000 US products, will be presented to Washington and could reduce Thailand's $46 billion trade surplus by 70% within three years. Final tariffs are expected to fall to 18–20%, he said, adding the plan is more ambitious than previous offers and exceeds commitments by Indonesia and Vietnam, reflecting Thailand's capacity to process and re-export US goods.
Bangkok Post
4 days ago
- Bangkok Post
Thais will not slash all tariffs
Thailand will not agree to reduce tariffs to zero on all US goods in ongoing trade talks, as such a move could significantly impact domestic producers and strategic industries, Deputy Finance Minister Paopoom Rojanasakul said. Speaking ahead of a scheduled meeting between the "Team Thailand" delegation led by Finance Minister Pichai Chunhavajira and the Office of the United States Trade Representative (USTR) on Thursday, Mr Paopoom emphasised the need to strike a balance between protecting exporters and safeguarding local producers, including farmers and small businesses. "The winner in negotiations is not the one who gets the lowest tariff, but the one who can maintain the most balanced outcome," said Mr Paopoom. He revealed that current reciprocal tariff rates on Thai exports to the US average around 36%, and discussions are ongoing to secure more favourable terms. However, he warned that any concessions made to reduce US tariffs would inevitably come with expectations for increased market access in return -- something that could pose risks to Thailand's local industries. "It's not just about securing a lower tariff rate," he said. "We must consider the impact on domestic sectors. Nothing comes without a cost. If we want the US to lower tariffs, we must offer access to our markets in exchange." Mr Paopoom stressed that Thailand could not adopt a blanket zero-tariff approach similar to Vietnam's, as this would require full market access for US goods. "We must weigh the benefits against the potential harm. He noted that while the export sector plays a significant role in the country's GDP, the government must also consider the well-being of farmers, SMEs, and domestic livestock producers. "Thailand is not made up of exporters alone. We have to look after all segments of society." The deputy finance minister clarified that strategic products -- those critical to national interests -- would need to be excluded from zero-tariff commitments. Overexposing local markets to foreign goods could disrupt domestic supply chains and damage the competitiveness of Thai producers. In addressing comparisons with Vietnam, Mr Paopoom explained that Vietnam receives two distinct tariff rates under US trade policy: 20% for goods made with domestic or regional inputs that meet Regional Value Content (RVC) requirements, and 40% for those that do not. Given that Vietnam's supply chain is less developed than Thailand's, he noted that a larger proportion of Vietnamese exports are likely subject to the higher 40% tariff. Commerce Minister Jatuporn Buruspat has confirmed that Thailand has offered to reduce import tariffs on tens of thousands of products from the US to zero. Additional proposals have also been submitted. As trade talks continue, the Commerce Minister has instructed relevant agencies to draft contingency plans to mitigate the potential impact of any retaliatory tariffs that may be imposed by the US. Mr Jatuporn said the government is preparing for two scenarios -- one in which Thai goods are subject to a 36% tariff rate and another in which they receive a 20% tariff rate, equivalent to that offered to Vietnam, a regional competitor. Chanintr Chalisarapong, vice chairman of the Thai Chamber of Commerce, told Bloomberg News that Thailand plans to scrap tariffs on 90% of US goods, up from the previous 60%. The proposal, covering 10,000 US products, will be presented to Washington and could reduce Thailand's $46 billion trade surplus by 70% within three years. Final tariffs are expected to fall to 18–20%, he said, adding the plan is more ambitious than previous offers and exceeds commitments by Indonesia and Vietnam, reflecting Thailand's capacity to process and re-export US goods.
Bangkok Post
6 days ago
- Bangkok Post
Cabinet preps Financial Hub Bill draft
The cabinet is preparing to propose the draft Financial Hub Bill for parliamentary deliberation in the near future. According to Deputy Finance Minister Paopoom Rojanasakul, the Council of State has already completed its review of the draft law. The next step will be to present it to parliament for consideration in its first reading. "This draft law will establish an ecosystem that aligns with the needs of global financial companies," said Mr Paopoom. The proposed Financial Hub Act aims to elevate Thailand into a regional financial centre by overhauling the licensing and regulatory framework under the Financial Hub initiative, making it comprehensive and business-friendly. The draft law is designed to attract investment by streamlining operations and establishing a central agency to set policies that promote Thailand as a financial hub. It also lays out strategies to develop the financial industry ecosystem, including workforce development and infrastructure improvements to meet the demands of leading global financial firms. The draft law will define target businesses within the Financial Hub and establish the Office of the Regulatory and Promotion Committee for the Financial Business Hub as a One-Stop Authority (OSA). It will define qualifications for business operators, licensing procedures, investor incentives and regulatory frameworks that are efficient and aligned with international standards. The draft law approved by the cabinet contains nine chapters and 94 sections, including General Provisions, which specifies the effective date of the Financial Hub Act and relevant definitions. Chapter 1 – Regulatory and Promotion Committee for the Financial Business Hub, which outlines the structure and authority of the committee responsible for comprehensive oversight of the Financial Hub, including setting business guidelines, issuing licences, inspecting operations and revoking licences. Chapter 2 – Office of the Committee, which establishes the OSA to provide one-stop services and facilitate businesses in licensing and receiving incentives. Chapter 3 – The director, who specifies qualifications and the appointment process for the executive managing the Office. Chapter 4 – Licensing of Target Businesses, defining types and scopes of businesses eligible for licences, and the characteristics of legal entities seeking to operate within the Financial Hub. Chapter 5 – Promotion of Incentives, outlining the benefits and incentives available to businesses established under the Financial Hub framework. Chapter 6 – Supervision of Businesses under Promotion, establishing regulatory standards for businesses within the Financial Hub, covering financial institutions, securities firms and insurance businesses, aligned with current regulatory practices. Chapter 7 – Officials, granting officials the authority to inspect the operations of businesses within the hub. Chapters 8 and 9 – Administrative Sanctions and Criminal Penalties, setting forth penalties for non-compliance with the Act's rules and conditions.
