The Thai government has launched a sweeping crackdown on “nominee” business structures, intensifying efforts to root out foreign investors who use Thai proxies to bypass ownership laws and dominate local industries.
This coordinated offensive is designed to prevent “grey capital”—shady foreign investment—from displacing Thai workers and seizing control of the domestic market. According to government reports, the initiative aims to ensure that foreign entities do not unfairly compete with or steal job opportunities from Thai citizens, as detailed in recent reports by Thairath.
The operation has already yielded significant results in tourist hotspots. In a recent raid on Koh Phangan, a specialized police unit targeting illegal foreign activity uncovered evidence linking 27 companies to nominee arrangements. The operation led to the recovery of 51 rai of land, with an estimated value of 150 million baht, as reported by Manager Online.
To close existing legal loopholes, the Land Department has implemented rigorous new screening measures. Officials are now conducting strict audits both before and after land transfers to block foreigners from illegally holding land through proxy owners, a move highlighted by Ch7.
The crackdown is being supported by broader policy shifts at the cabinet level. The Ministry of Interior is currently accelerating the development of new mechanisms to address the systemic issue of foreign nationals settling in Thailand to dominate local businesses, according to TNN Thailand.
These measures underscore a growing priority for the Thai state to protect its economic sovereignty. By targeting the “nominee” system, authorities hope to restore fair market competition and prevent the erosion of local business ownership. The broader scope of these enforcement actions is further detailed in reports from Daily News.
