The Department of Business Development (DBD) is adjusting its work procedures for its nominee crackdown, focusing on large businesses and proposing a new committee chaired by the deputy prime minister.
Poonpong Naiyanapakorn, director-general of the DBD, said following allegations of nominee land holding and business operations by foreigners on Koh Samui and Koh Phangan in Surat Thani, the department investigated and took legal actions against some businesses found to have violated the law. The crackdown extends to nominee businesses nationwide, including those in Surat Thani.
He said the department will review and improve the working process, with greater integration among relevant agencies, focusing on more in-depth and targeted inspections in high-risk provinces.
All legal entities that use Thai nominees to hold shares on behalf of foreigners violate the Foreign Business Act, said Mr Poonpong.
Inspections initially covered roughly 7,000 businesses, including both small and large enterprises in Surat Thani, focusing on high-risk sectors such as real estate, hotels, condos, restaurants and tourism.
He said the department will change its strategy from a broad inspection of up to 46,918 businesses to focusing on a few thousand high-risk cases, helping to shorten the inspection process and improve efficiency.
Moreover, the Commerce Ministry is expected to ask the prime minister to create a new committee to oversee illegally imported goods and foreign businesses, expected to be chaired by the deputy prime minister after the previous committee was dissolved due to a change in government.
The new committee is expected to include representatives from the Department of Special Investigation, the Anti-Money Laundering Office, and 20 other agencies.
The panel will also address foreign investment promotion, with participation from the Board of Investment and the Industrial Estate Authority of Thailand, said Mr Poonpong.
Business closures in the third quarter this year soared by 79.6% from the previous quarter to 5,635 businesses, though they fell by 9.22% year-on-year.
The total capital of closed businesses increased by 104% from the second quarter to 38.1 billion baht in the third quarter, but fell by 3.08% year-on-year.
Based on the past five years, business closures this year are following a typical trend and are expected to be lower than those in 2023 and 2024, he said.
Meanwhile, new business registrations in the third quarter are high, on a par with registrations in the first quarter.
Mr Poonpong said new business registrations typically tend to peak in the first quarter before decreasing in the following quarters.
New business registrations grew by 17.5% from the second quarter to 23,507 in the third quarter, and increased by 0.88% year-on-year.
Total registered capital dropped by 5.99% from the second quarter to 65.1 billion baht in the third quarter, and increased by 2.64% year-on-year.