KOH PHANGAN, THAILAND – Residents of Koh Phangan went public with calls for stricter enforcement of existing laws against foreign-run nominee businesses.
Nominee companies to bypass the law
In Thailand, it was generally forbidden for foreigners to operate certain sectors directly, with the law designed to protect local entrepreneurs. Residents on Koh Phangan reported, however, that foreign operators increasingly used Thai nominees to circumvent these rules.
Facebook user Pawina Jehmad published a post drawing attention to this practice and urging the relevant authorities to carry out inspections. The post triggered a broad response among island residents.
Local businesses under economic pressure
Small Thai business owners on the island complained of growing competitive pressure. According to residents, some foreign groups had significant capital and were able to dictate prices and conditions that local family businesses could not match.
Traditional sectors such as fishing, hospitality and retail were described as particularly affected. Locals also reported noise problems and conflicts linked to some of the businesses under criticism.
Nuanced stance within the island community
Residents stressed that their criticism was not directed at all foreigners. Many international visitors and long-term residents reportedly lived peacefully on the island and contributed to the local economy.
The demands were explicitly aimed at those persons and groups who demonstrably disregarded applicable law. Equating all foreigners with this issue was rejected by those raising the concerns.
Calls for consistent law enforcement
Residents appealed to the police and administrative authorities to enforce existing laws without exceptions. Observers stated that the Foreigners Act, the Business Act and immigration regulations already provided sufficient legal tools.
Whether the authorities would launch corresponding investigations was not yet known. Local media continued to monitor the situation.
Structural problem beyond Koh Phangan
The issue of illegal nominee structures was not limited to Koh Phangan. Similar practices were repeatedly reported and investigated by authorities in other major tourist destinations such as Phuket, Pattaya and Samui.
Thai authorities had, in the past, repeatedly closed companies and filed criminal complaints when violations of the nominee ban were proven. However, enforcement was regarded as inconsistent.
“The article was based on reports that foreign operators allegedly used Thai nominees to bypass Thai business laws; it did not itself determine guilt or verify individual cases.”
said MGROnline, source.