Kasikorn Research Center stated that on 4 February 2025, the cabinet of Thailand approved the Financial Hub Act. As for the next stage, the Council of State, the House of Representatives, and the Senate of Thailand will now consider whether to approve the act. In the initial state, the Financial Hub Act is composed of 9 chapters and 96 sections.
The financial hub is expected to compose with eight financial businesses including the commercial bank, the payment service, the securities business, the futures contract, the digital asset, the insurance, the reinsurance, and the financial business (or any other related businesses to financial business as stated in the act). The aforementioned business operators are allowed to provide services only to non-resident customers and are prohibited to persuade or provide services to the Thai residents.
As for the private sector, the details are being further clarified. These details include the limit of transactions with Thai residents, the intensity of the supervision under One Stop Authority, and the oversight of money laundering and the illegal transaction business.
If the act is approved, with the main content remaining intact, the Council of State will face major challenges in establishing regulations and rules. The council must find a balance in providing opportunities for foreign investment in financial business, ensuring stability in the financial system, and considering the effects of other aspects. These are for the framework of the rule of law to drive the country to become a developing financial hub center.
Moreover, Kasikorn Research Center considered that Thailand must develop other financial aspects, along with other sustainable financial talent to increase Thai people’s financial skills and the readiness for payment systems, IT, and other relatable systems to support high-value transactions. These developments will benefit Thailand as the nation fully and sustainably embraces the new role as a financial hub.
