A Project Report on PESTEL Analysis of Thailand

Name : Vadodariya Akshay R.

Enrollment No. : 91900425206

Class : BBA (H) - I - B

Subject : Microeconomics

Submitted to Pro. Harsha Sataramani

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 INTRODUCTION OF THAILAND

Thailand, officially the Kingdom of Thailand and formerly known as Siam, is a

country at the centre of the Southeast Asian Indochinese peninsula composed of 76
provinces. At 513,120 km2 (198,120 sq mi) and over 68 million people, Thailand is the
world's 50th-largest country by total area and the 21st-most-populous country.

. The capital and largest city is Bangkok, a special administrative area. Thailand is
bordered to the north by Myanmar and Laos, to the east by Laos and Cambodia, to the south
by the Gulf of Thailand and Malaysia, and to the west by the Andaman Sea and the southern
extremity of Myanmar. Its maritime boundaries include Vietnam in the Gulf of Thailand to
the southeast, and Indonesia and India on the Andaman Sea to the southwest. It is a unitary
state. Although nominally the country is a constitutional monarchy and parliamentary
democracy, the most recent coup, in 2014, established a de facto military dictatorship under
a junta.

Tai peoples migrated from southwestern China to mainland Southeast Asia from the
11th century; the oldest known mention of their presence in the region by the exonym
Siamese dates to the 12th century. Various Indianised kingdoms such as the Mon kingdoms,
Khmer Empire and Malay states ruled the region, competing with Thai states such as the
Kingdoms of Ngoenyang, Sukhothai, Lan Na and Ayutthaya, which rivaled each other.

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 Documented European contact began in 1511 with a Portuguese diplomatic mission to
Ayutthaya, now one of the great powers in the region. Ayutthaya reached its peak during
cosmopolitan Narai's reign (1656–1688), gradually declining thereafter until being ultimately
destroyed in the 1767 Burmese–Siamese War. Taksin (r. 1767–1782) quickly reunified the
fragmented territory and established the short-lived Thonburi Kingdom. He was succeeded in
1782 by Buddha Yodfa Chulaloke (r. 1782–1809), the first monarch of the Chakri dynasty
and founder of the Rattanakosin Kingdom, which lasted into the early 20th century.

Through the 18th and 19th centuries, Siam faced pressure from France and the United
Kingdom, including forced concessions of territory; nevertheless, it remained the only
Southeast Asian country to avoid direct Western rule. Following a bloodless revolution in
1932, Siam became a constitutional monarchy and changed its official name to "Thailand".
While it joined the Allies in World War I, Thailand was an Axis satellite in World War II. In
the late 1950s, a military coup under Field Marshal Sarit Thanarat revived the monarchy's
historically influential role in politics.

Thailand became a major ally of the United States, and played a key anti-communist
role in the region as a member of the Southeast Asia Treaty Organization (SEATO). Apart
from a brief period of parliamentary democracy in the mid-1970s, Thailand has periodically
alternated between democracy and military rule. In 2013, Thailand endured a political
crisis that culminated in two coups and the establishment of its current and 20th constitution by
a military junta.

FLAG

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 Thailand is a founding member of the Association of Southeast Asian Nations
(ASEAN) and remains a major ally of the US. Despite its comparatively sporadic changes in
leadership, it is considered a regional power in Southeast Asia and a middle power in global
affairs.\With a high level of human development, the second-largest economy in Southeast
Asia, and the 20th-largest by PPP, Thailand is classified as a newly industrialized economy;
manufacturing, agriculture, and tourism are leading sectors of the economy.

EMBLEM

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 POLITICAL ENVIRONMENT OF THAILAND

Thailand, officially the Kingdom of Thailand, formerly known as Siam, is a country located
at the centre of the Indochina peninsula in Southeast Asia. It is bordered to the north by
Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and
Malaysia, and to the west by the Andaman Sea and the southern extremity of Burma. Its
maritime boundaries include Vietnam in the Gulf of Thailand to the southeast, and Indonesia
and India in the Andaman Sea to the southwest.

The country is a constitutional monarchy, headed by King Rama IX, the ninth king of the House
of Chakri, who, having reigned since 1946, is the world's longestserving head of state and the
longest-reigning monarch in Thai history. The king of Thailand is titled Head of State, Head of
the Armed Forces, the Upholder of the Buddhist religion, and the Defender of all Faiths.

For most of its history, Thailand had been ruled by absolute monarchs but that
changed in 1932 when a revolution changed the ruling power to a constitutional
monarchy. Even with this change, the majority of the power was with the military
until recently.

The politics of Thailand are currently conducted within the framework of

a constitutional monarchy, whereby the Prime Minister is the head of government and
a hereditary monarch is head of state. The judiciary is independent of the executive
and the legislative branches.

Thai kingdoms and late Kingdom of Siam were under absolute rule of the kings.
However, after the 'democratic revolution' in 1932, led by westernized bureaucrats
and traditional-oriented military, the country officially became under a constitutional
monarchy with a prime minister as the head of government.

The first written constitution was issued. Yet the politics became the arena of fighting
factions among old and new elites, bureaucrats, and generals. Coups happened from time to
time, often bringing the country under the rule of yet another junta. To date Thailand has
had seventeen charters and constitutions, reflecting a high degree of political
instability.

After successful coups, military regimes have abrogated existing constitutions and
promulgated interim charters. Negotiation among politicians, men of influence and
generals has become the prime factor for restoration of temporary political stability. It
is arguable, however, that stability was never the objective, that instead elites used the
government as an interim tool to 'officialise' its declarations and continued status.

Thailand has multi party system. There are five types of parties which are as follows:

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1. In Coalition Government :-
In this coalition government there are six sub parties like Pheu thai party,
Charthaipattana party (19 seats), Chart Pattana Puea Pandin party(7 seats) , Phalang
chon party (7 seats), Mahachon party (1 seat) and New Democracy party (1seat).

2. In Opposition :-
In Opposition there are five sub parties like Democrat Party (occupies 159 out of 500
seats), Bhumjathai party (34 seats), Rak Thailand party (4 seats), Matubhum party (2
seats),Rak santi party (1seat).

3. Extra parliamentary :-
In extra parliamentary there are 6 sub parties like Social action party, Pracharaj party ,
new politics party , Thai pen thai party, New aspiration party, New force party.

4. Defunct Paries :-
There are 6 sub parties like Khana ratsadon , Socialist party of Thailand, palang
dharma party , National development party (2007) , Thais united(2007), Mother land
party (2011).

5. Banned Or Dissolved Parties :-

Banned or dissolved parties are the parties which are dissolved by the constitutional
court and barred from political activity like communist party of Thailand, thai rak thai
party (dissolved on May, 30 2007).

1. The status of the monarch as head of the armed forces and upholder of
Buddhism and all other religions :-

His sovereign power emanates from the people, and as head of state, he exercises his
legislative power through parliament, executive power through the cabinet headed by a prime
minister and judicial through courts.

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2. The Legislative Branch :-
The new leaders of 1932 realized that the goal of popularly elected government could not be
attained immediately, and that considerable experimentation and adaptation would be
necessary before a balance could be struck.

3. The Executive Branch :-

Every constitution holds that the Prime Minister is head of government and chief executive.

4. Western democratic system :-

For the past six decades, Thailand has been adopting the Western democratic system to the
needs of a nation with its own identity and time-honoured culture.

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 ECONOMICAL ENVIRONMENT OF THAILAND

In the decade until 1995 the Thai economy was among the world’s fastest growing
with a rate of 8% to 9% a year. The government has also been successful in reducing
poverty and improving social services. Despite the hard times during the “Asian
Crisis” of 1997-98, Thailand has made important progress in social and economic
development, although in 2008 and 2009 economic growth has fallen sharply, mainly
due to the global downturn and persistent political instability, which created a fear in
the investor confidence.

The country’s economy is mainly driven by the manufacturing sector. Thailand is an

economy very export-dependent with exports accounting for two thirds of gross
domestic product.

The capital Bangkok has become the centre of economic activity and the most
prosperous part of the country, accounting for about 60% of national GDP. Thanks to
its good infrastructure, the city is competing with Singapore to become a regional hub
for air travel within Southeast Asia.

To cushion the impact of the global crisis, the Thai government has adopted a fiscal
stimulus to stimulate domestic purchasing power through cash handouts. The second
phase of the stimulus, worth almost $57 billion, includes a range of large infrastructure
projects over 2010-12.

The industry has undergone substantial changes in terms of the ownership of banks and of
regulations. In many banks, family ownership has been replaced by state and foreign
ownership. The banking sector saw several entrants during the reforms, a phenomenon that
had been absent for more than 20 years before the crisis. Despite these developments, a
casual observation of loan market share suggests that the oligopolistic nature of the industry
remains unchanged1. Before as well as after the crisis, the six largest banks accounted for 70
percent of total loans of the consolidated banking sector. The rather stable market share of the
large banks, despite the reforms, forms the background of the present analysis on the
behavior of leading Thai banks.

Founded on 10th December 1942, the Bank of Thailand (BoT) became Thailand’s
central bank and was thus entrusted with a broad range of traditional functions: to
issue currency; to safeguard the value of money; to promote monetary stability and a
sound financial structure; to promote economic growth; to act as the bankers’ bank
and provide lender of last resort facilities; and to act as banker and financial adviser to
the Government.1 During most of its history, the BoT played an important role in
promoting the development of financial institutions and markets in Thailand.

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However, following the Asian financial crisis which broke out in 1997, the BOT became
vulnerable as Thailand started to experience a severe economic crisis. The crisis derailed all
ongoing financial reforms and directly crippled the banking sector, the stock exchange and
the foreign exchange market (McKinnon and Pill, 1998). Regarding the banking sector, the
major problems associated with the crisis included: failure of financial institutions;
insufficient bank liquidity and inadequate capital; high non-performing loans; and loss of
momentum in rebuilding confidence among international investors, depositors and economic
development organizations, potentially limiting future capital flows into Thailand. In this
context, it is interesting to examine how a traditional central bank, like the BoT, is able to
cope with a financial crisis of a magnitude far beyond its stipulated role.

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The Thai government is recently interested in capitalizing on the opportunities within the
service industry due to the fact that it is the key sector which contributes to the country’s
economy other than manufacturing and agriculture. The service industry is expected to grow
rapidly in the Thai economy since it is fundamental for the operation of a modern business
and many industries use business services as inputs to an efficient business. The Thai service
industry must learn to adapt to the increasingly competitive environment, and coordinate and
cooperate with others in line with the new rules. Overall Thailand’s service industry is
relatively small in scale and weak in strength compared with the manufacturing sector. The
services of Thailand includes Tourism services, banking and finance services, Entertainment
services, financial services, Healthcare services.

The key production sectors of Thailand are based on annual output, Thailand’s key sectors
from largest to smallest are tourism, textiles and garments, agricultural processing, beverages,
tobacco, cement, light manufacturing such as jewellery and electric appliances, computers
and parts, integrated circuits, furniture, plastics, automobiles and automotive parts. Thailand
is the world's second-largest tungsten producer and the third-largest tin producer. And it
include agro-business industry, service industry, fashion industry, electrical and electronics
industry, automotive industry and alternate energy industry. Other production sectors include
rice production and cut flower production.

The Economy of Thailand is a newly industrialized economy. It is a heavily

exportdependenteconomy, with exports accounting for more than two thirds of its gross
domestic product (GDP). In 2011, Thailand has a GDP at current market prices of THB10.54
trillion (USD345.65 billion approx.) with the growth rate of 0.1 percent, much lower than the
expected growth rate of 3.5 percent due to severe damage from the historic flood the
Kingdom confronted mainly in the last quarter of the year. In 2012, the Thai economy is
expected to grow by 5.5-6.0 percent, a V-shaped recovery from last year’s flood.

Thailand’s current demographic profile shows that the youth population ratio has been
declining steadily at 22% since 1990, particularly due to delayed marriages and lowered
fertility rates. In fact, the projected youth population ration for 2050 is 11.7%, and Bangkok
will need to emphasize the productive capabilities of its young people in order to maintain
competitiveness in the long run. Despite these significant hurdles, Thailand has managed to
integrate itself well into regional and global economies.

In fact, it stands as the epicenter in East Asia, which has grown more rapidly than any other
region in terms of GDP, alleviating millions out of poverty in the [Link] 1997 and
2010, 4,306 mergers and acquisitions involving Thai businesses were announced; the
announcements consisted of a total known value of USD$81 billion. The year 2010 was a
new record in terms of value with 12 bil. USD of transactions. The largest transaction with
involvement of Thai companies has been: PTT Chemical PCL merged with PTT Aromatics
and Refining PCL valued at 3.8 bil. USD in 2011.

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 SOCIAL ECONOMY OF THAILAND

The First to the Tenth of Thailand’s national development plans, thedevelopment paradigm of
national development plans has evolved in the context oflobal and domestic changes. A
significant shift in the country’s developmentplanning has taken place since the Eighth Plan
(1997-2001) from a growth-orientedapproach to the new model of holistic “people-centered
development”. In order toensure a more balanced development, priority was given to broad-
based participation, and to actively engaging civil society, the private sector and academia, in
the formulation the national development plan.

Furthermore, economic mismanagement, which led to the 1997 Asian crisis, prompted the
adoption of the Philosophy of Sufficiency Economy as a main guiding principle in the Ninth
Plan (2002-2006), with its practical applications becoming evident during the Tenth Plan
(2006-2011). In order to achieve sustainable development with a people-centered approach, it
is necessary to enhance the country’s self-resilience by strengthening Thailand’s economic
and social capital and improving risk management in order to effectively handle internal and
external uncertainties. This will lead the country toward sustainable development and a
“Happiness Society”.

During the Tenth Plan, the Philosophy of Sufficiency Economy was applied extensively in
Thailand’s development, resulting in greater resilience in various aspects of Thai society,
enabling Thailand to cope effectively with the impacts of the 2008 global economic crisis.
This achievement was well reflected in the Green and Happiness Index (GHI) of 65-67
percent, with contribution from strong economic performance, high employment, strong
communities and family ties. However, major obstacles remain, such as political unrest,
environmental and ecological degradation, low quality of education, and severe drug
problems.

The evaluation of the Tenth Plan also indicated improved economic foundations for
development and increasing quality of growth. Quality of life has improved with better access
to various economic and social security measures and gains in poverty reduction. It is
however, essential to emphasize the development of human capital and human security,
promotion of good governance and fair competition, and distribution of development benefits
in order to reduce social inequality.

During the Eleventh Plan (2012-2016), Thailand will encounter more complicated domestic
and external changes and fluctuations which present both opportunities and threats to national
development. Thus, it is necessary to utilize the existing resilience of Thai society and
economy, and to prepare both individuals and society as a whole to manage the impacts of
such changes and pave the way toward well-balanced development under the Philosophy of
Sufficiency Economy.

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13
 TECHNOLOGICAL ENVIRONMENT OF THAILAND
.

Thailand, which was formally known as Siam Thai, is located in the Southeast Asia. A blend
of urbanization and natural beauty the country does not lack behind in science and technology
also. Thailand has a long historical in technical and economic cooperation.

The Science Society of Thailand was founded in 1948 to promote the development of science
and technology in Thailand. The society currently has about 5,000 members, has 12 regional
and subject area branches. As the first science society in Thailand, it has played a leading role
in the development of science and technology in the country under the leadership of its 13
Presidents.

In 1950 the country established the Department of Technical and Economic Cooperation
(DTEC) to work with cooperating partners in supporting projects in the country.

Ministry of Science and Technology (MOST) was established 24 March 1979 under the
Amendment Act of the Proclamation of Revolutionary Party No.216 for the development of the
IT in Thailand.

From the 1991 thailand become more active in information technology, it has aimed to
strengthen human resources in the fields of science and technology, to support national
development, to adopt new technology to increase industrial and agricultural productivity.

Thailand become recipient and a provider of technical assistance, environmentally sound

technologies gradually. In 1991, the National Science and Technology Development Agency
start supported research, development, and engineering in scientific and technological with
the three main goals which were:

1) To support public sector research, development and engineering projects;

2) To support technological strengthening in the private sector; and,

3) To offer scholarships in the fields of science and technology for study abroad and locally.

Besides that for the medium and small scale industry , Board of Investment and the Ministry
of Industry tried a lot to provide them necessary information. Support from the international
community will enhance Thailand’s capability in technology. Internet facility was also
established in Thailand in this period of time.

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For more than thirty years, the Thai stock market has introduced computer systems to
facilitate investors and listed companies both in financial data and administrative work. In
particularly, the Internet trading system has been introduced to enhance market growth.

Growth over the last decade has been attributed to the country's macroeconomic stability and
to a steady shift from that of a traditional-commodity-based economy toward one that is
manufacturing and services oriented.

The Thai technological market is the largest in the South East Asia region and despite a
serious impact from the recent floods that will continue into 2012, is projected to grow at a
rate of 11% over the 2012-2016 period. The total value of Thai domestic spending on IT
products and services should reach US$6.2bn in 2012 and US$9.3bn 2016.

In government, technology can be used to improve various key areas of public-sector

management and policy formulation in tune with ever quickening changing macroeconomic
and social conditions. This will enhance the convenience to citizens in obtaining public
services. At the same time, its misuse can easily violate personal privacy.

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In education and training, Technology improves education management, provide novel
approaches to learning and training, and become an effective tool to realize education for all.

In public health, technology will continue to play a considerable role in raising the standards
of public health services delivery, with current applications ranging from collection and
statistical analysis of data for health and family planning indicators, epidemiology,
demographic and medical research to information systems for health care delivery
management, such as maintaining patients' records and pharmacy logistics control.

Science and Technology in the Health Care :-

In providing health-care services to over 56 million Thais, IT can play a vital role in
improving the efficiency and effectiveness of delivery. Often the ability to obtain and provide
prompt and accurate information can well be a matter of life and death, as with epidemics and
other medical emergencies. Thus, both computers and telecommunications are imperative.

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 ECOLOGICAL ENVIRONMENT OF THAILAND

The Kingdom of Thailand covers a land area of 513,115 square kilometers. The country
extends 1,500 km from north to south and 800 km from east to west. The North is mainly
mountainous which serves as the origin of four major rivers (Ping, Wang, Yom, and Nan)
which converge to become the Chao Phraya River, the lifeline of the Central Plain. The
whole region lies above 200 m heights. The Northeast occupies one-third of the country’s
total land area and is the most crowded and lowest income region. The Northeast is a dry
plateau at 100 to 200 m heights. Large parts of this region regularly experience standing with
periods of floods and alternating with periods of drought.

Thailand can be divided into 25 river basins. The average of annual rainfall for the country is
about 1,700 mm. increasing population, economical, agricultural and industrial expansion in
Thailand are the major causes of water quality in various water sources, including surface water,
ground water and sea water to be deteriorated.

Industrial growth has created high levels of air pollution in Thailand. Vehicles and factories
contribute to air pollution. In the Bangkok metropolitan area, which consists of the Bangkok
Metropolitan Administration (BMA) and the four surrounding provinces (Nonthaburi,
Pathum Thani, Nakhon Pathom, and Samut Prakan), have about 20 percent of the national
population and over half of the country's factories.

Coupled with the concentration of the factories in the metropolitan area, the air pollution
caused by motor vehicle emissions, and grave water pollution from household and industrial
wastewater, justified that there would be no doubt of the increase of externalities from
production. Vehicles — motorcycles make up around 75% of the vehicles on the road in
Thailand; diesel trucks and buses also contribute many pollutants.

Pollution from noise and vibration are problems found in communities and developed areas
in which transportation and industry are expanding, particularly in areas such as Bangkok
Metropolitan and cities of developing center in other regions. The main sources of noise
pollution include vehicles, commercial premises, and industrial factories. According to an
examination of noise levels in 1994, the highest 24-hour average noise levels were found to
be along roadsides in Bangkok and other areas in Samut Prakan.

These levels may be dangerous for human hearing, in accordance with the US Environmental
Protection Agency (EPA), the average noise in 24 hrs should be not more than 70 decibels.
The main sources of vibration pollution are the use of industrial tools, machinery and
equipment, and construction, pile driving, drilling, and stone quarry and crushing, as well
some certain activities in communities. Vibration pollution causes cracks or subsidy on
houses, buildings, and constructed structures, impact on people' health, and is a trouble to

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communities.
In the past, mitigation of noise and vibration pollution has been by designating noise level
from boat and vehicle engines. A pilot project of the action to reduce noise pollution from
boat engines in Khlong Saensaeb was implemented, in order to formulate operational
guidelines for the whole country. In addition, a project was implemented to prevent and
mitigate air and noise pollution originating from government vehicles in Bangkok
Metropolitan and perimeter provinces, and pollution control zones, Further, trainin programs
for mechanical technicians of engine service stations were also carried out.

Ambient noise and emission standards from original sources, for instance aircrafts, business
premises, and industrial factories, are being formulated. Thus, solution of the impacts of
sound pollution can be achieved to a certain level. At the same time, strict and continuous law
enforcement, well-trained personnel, and appropriate study, research and development in
technologies are lacking. Importantly, the public lacks the knowledge and understanding of
how to solve pollution problems, resulting in a continuation of existing problems and an
augmentation of problems due to expansion of economic growth.

The Environmental Performance Index (EPI) is a method of quantifying and numerically

benchmarking the environmental performance of a country's policies. EPI has been measured
from Environmental Burden of Disease, Water (effects on humans), Air Pollution (effects on
human), Air Pollution (effects on ecosystems), Water, Biodiversity and Habitat, Productive
Natural Resources, Productive Natural Resources, Productive Natural Resources, Climate
Change.

According to EPI rank 2012 Thailand got 34th rank with 59.98 score (Strong Performer) and
6th rank in Asia continent. According to Trend EPI rank Thailand got 10th rank in all over
world and 1st rank in Asia continent.

ENVIRONMENTAL PERFORMANCE IN INDEX RANK OF THAILAND

Level of Aggregation Score Rank

Environment Performance Index 59.98 34

Environment Health 71.4 62
Air(Effect on Human Health) 40.3 115
Environmental Burden of Disease 87.6 35
Water (Effect on Human Health) 70 49
Ecosystem Vitality 55.1 41
Agriculture 93.9 6
Air(Ecosystem Effects) 42.9 57
Forests 87 50
Climate Change 39.2 77
Water Resources(Ecosystem Effects) 18.2 93
Biodiversity and Habitat 78.9 35

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 LEGAL ENVIRONMENT OF THAILAND

LEGAL SYSTEM

Thailand’s legal system combines principles of traditional Thai and Western laws. The
Constitutional Court is the highest court of appeal, although its jurisdiction is limited to the
clearly defined constitutional issues. Its members are nominated by the Senate and appointed
by the King. The Courts of Justice have jurisdiction over criminal and civil cases and are
organized in three tiers: Courts of First Instance, the Court of Appeals, and the Supreme
Court of Justice. Administrative courts have jurisdiction over suits between private parties
and the Government, and cases in which one government entity is suing another.

THE BUSINESS ENVIRONMENT

For policy makers trying to improve their economy’s regulatory environment for business, a
good place to start is to find out how it compares with the regulatory environment in other
economies. Doing Business provides an aggregate ranking on the ease of doing business
based on indicator sets that measure and benchmark regulations applying to domestic small to
medium-size businesses through their life cycle.

DEALING WITH CONSTRUCTION PERMITS

Regulation of construction is critical to protect the public. But it needs to be efficient,
to avoid excessive constraints on a sector that plays an important part in every
economy. Where complying with building regulations is excessively costly in time
and money, many builders opt out. They may pay bribes to pass inspections or simply
build illegally, leading to hazardous construction that puts public safety at risk. Where
compliance is simple, straightforward and inexpensive, everyone is better off.

The ranking on the ease of dealing with construction permits is the simple average of
the percentile rankings on its component indicators: procedures, time and cost.

MAJOR EXPORTS AND IMPORTS

Thailand main exports are computer hardware, motor vehicles and auto parts, jewelry and
Electrical circuits. Crude oil, machinery and parts, and alloy steel and steel products are the
top three import products of Thailand during the past five year.

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CORPORATE REGISTRATION PROCEDURES

Limited Company: Before forming a limited company, the chosen corporate name must
first be registered and approved by the Commercial Registrar. A memorandum of Association
is then filed which contains: the approved name of the company, its business address, its
objectives, the personal details about the promoters and the shares subscribed by each, and
data on the authorized capital of the company. The next step is to hold a statutory meeting of
shareholders during which the articles of incorporation and by-laws are approved, the board
of directors is elected, the transactions and expenditures of the founders are ratified and the
authorized auditor is appointed. The directors may then register the company with the
Commercial Registrar.

BRANCH, REPRESENTATIVE OFFICE AND ROH

Foreign corporations wishing to do business in Thailand through a branch, representative

office or ROH shall submit the required documents. Documents issued by the Head Office
must be notarized by a Notary Public or certified by the local Thai consulate or embassy.

Public Securities: In offering newly issued securities for sale to the public, companies shall
apply for an approval from the Securities and Exchange Commission (SEC) in compliance
with the rules and regulations issued by the SEC Board according to the Securities and
Exchange Act B.E. 2535. However, the offering of existing securities by its holders can be
done without the SEC approval on the condition that the company shall disclose information
prior to offering securities for sale. Before offering securities to the public, the companies or
existing shareholders shall generally need to file a registration statement and a draft
prospectus to the SEC in order to provide the information to potential investors.

TYPE OF INCOME DEDUCTIONS

1. Income from employment -40% but not exceeding Baht 60,000

2. Income from hire of work -40% but not exceeding Baht 60,000

3. Income received from copyright - 40% but not exceeding Baht 60,000

4. Income in the nature of interest, dividend, capital gain -

5. Income from letting out of property on hire

– Building and wharves 30%
– Agricultural land 20%

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LEGAL ENVIRONMENT
1. Consumer Protection Act (1979)
2. Unfair Contract Term Act (1997)
3. Trade Competition Act (1999)
4. Computer Crime Law (2002)
5. The Credit Information Business Act (2002)
6. Economic and Social development plan (1992-1996)

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