Thailand’s government will review 5,000 rules and regulations over the next 12 months in an attempt to loosen regulatory control in the country. CEO of Kiatnakin Bank Banyong Pongpanich, also a member of the junta’s legal overhaul committee, explained that many of the reviews will include laws that are not enforced or that pose obstacles to the country’s business owners.
Mr. Banyong noted that there are 1,544 licenses that need to be applied for by Thailand-based businesses. Businesses within these regulated areas often need numerous licenses before they can operate legally. Real estate developers need to apply for and win 17 licenses for a single project. Bribery often occurs to overcome all of the hurdles needed to receive the appropriate licenses, according to Mr. Banyong.
Royal executive decrees further complicate matters. Over the past five years, 620 royal decrees and 191 royal acts were announced. It’s estimated that there are over 100,000 decrees and acts of this manner that slow down and control all aspects of activity in Thailand.
“This is an institutional reform to unlock the system,” states Mr. Banyong.
Penalty rates for some acts may be raised during the review to reflect current currency rates. The Anti-Competition Act has been in law for over 16 years and is an act that may be abolished as it is rarely enforced in the country. South Korea’s release on government control is being pushed as a reference for the country following the country’s success. Nearly 50% of the country’s rules and regulations were abolished following the financial crisis.