Thailand’s Cabinet Approves Draft Financial Hub Act to Boost Global Investment

To position Thailand as a key global financial hub, the Thai Cabinet approved the draft Financial Act on February 4, 2025, as proposed by the Ministry of Finance. This legislation seeks to attract foreign financial businesses to invest in Thailand, while simultaneously fostering the development of the nation’s financial industry, workforce, and infrastructure to meet international standards.

The proposed financial hub targets businesses across the following eight key sectors:

• Commercial Banking
• Payment services
• Securities
• Trading 
• Digital Asset
• Insurance
• Reinsurance
• Other financial services (as designated by the authority)

Key Requirements for Participation:

• Must establish a physical presence within a designated areas in Thailand
•  Must contribute to the development of the local financial ecosystem and infrastructure. 
•  Must employ Thai nationals with designated ratio
• Must provide services only to non-resident

However, certain exceptions are made to facilitate collaboration with Thai entities:

• Insurance operator may engage in reinsurance transactions with Thai insurance companies for risk transfer
• Capital markets operators can provide co-services with Thai operators to assist clients with overseas investments
• Financial institutions may conduct interbank transactions with Thai Financial Institutions for risk management

-        Payment services operators can partner with Thai regulated service providers, provided they meet equivalent standards and

-        Operators involved in foreign exchange transactions will be classified as non-residents conducting financial business. They must comply with foreign exchange control regulations and measurements to prevent speculation on Thai Baht.

Key Incentives for Participating Businesses:

• Eligibility to own condominiums for business and residential purposes within designated zones.
• Facilitated visa and work permit processes for foreign specialists, executives, and spouses.
• Streamline access to international financial transactions.
• Tax incentives as designated by the law.

One-Stop Authority (OSA):

To ensure efficient and streamlined operations, an OSA will be established to provide comprehensive end-to-end services for participating operators, minimizing administrative burdens and potential delays.

For detailed information, please refer to the draft Financial Hub Act.