In particular, the Bank of Thailand now has the authority, bestowed by the government, to supervise and regulate the Specialized Financial Institutions (SFIs), which account for around 25% of Thai financial system’s total assets. In light of this, new sets of rules have already been imposed on SFIs to improve governance, operational capability, credit risk management as well as transparency. Along with improving SOE performance, businesses, are expected to compete in a fairer environment than before through better law enforcement. The revision of the Trade Competition Act, currently being considered at the National Legislative Assembly, will establish an independent commission - the Trade Competition Commission - to review and regulate business competition, thereby ensuring a fairer and more competitive environment among businesses. The commission will be more independent and less prone to influence from both the public and private sectors, unlike the current structure in which the committee is chaired by the Minister of Commerce and half of the committee can consist of representatives from large companies. In addition, the law is expanded to cover commercial operation of SOEs1, and antitrust penalties will be more penal. Therefore, the law is expected promote a more level playing field not only among private firms but also between private firms and public enterprises. On top of this, access to credit for small and medium sized firms will be improved. The Business Securities Act, effective since July of last year, widens the scope of eligible collateral for secured lending.
Under a single unified law, businesses will find it easier to comply with regulations; and at the same time the Bank of Thailand will strive to maintain flexibility in our supervision of payment systems in a way that mitigates risks but does not hinder innovation. In addition, the bill also provides assurance of payment finality and float protection, thus upgrading Thailand’s payment system to international standards. We acknowledge the importance of payment infrastructure in supporting the digital economy. The emergence of Financial Technology or FinTech along with its various innovations cannot be fully realized without having a good legal support and a clear policy. I will elaborate more on Thailand’s payment system in the third part of this talk. Before moving on to the next group of laws, I want to remind the audience that while I chose to highlight these three laws, there are many other legal reforms taking place that would enhance business productivity. One example is the Eastern Economic Corridor Bill, approved by the cabinet this October, which will establish a special economic zone across three provinces to attract investment in industries of the future. The zone is designed to facilitate business operations with extensive infrastructure investments to support transport, logistics, and public utilities. Firms operating within the special zone will receive additional incentives including tax-related and foreign labor employment benefits. Ladies and gentlemen, so far I have discussed laws that promote governance, economic opportunity, and productivity. The last group is sustainability.