By Anont Tanaset, Policy Specialist, Office of National Higher Education Science Research and Innovation Policy Council (NXPO)
Thailand’s digital economy has been rapidly evolving in recent years, driven by factors such as increasing internet penetration, smartphone adoption, and government initiatives. However, this growth also brings new challenges, including the proliferation of online scams, misinformation, and potential threats to cybersecurity. As the country navigates this new digital landscape, it is essential to balance innovation with regulation to ensure that the benefits of emerging technologies are widely distributed and the risks minimised.
The Evolving Regulatory Landscape
During the first half of 2024, although no new government offices had been established at the agency level, there were significant developments in Thailand’s digital economy regulation landscape. First, the Thai Criminal Court had set up the Cybercrime Case Division of Thai Criminal Court, effective on April 1st, 2024. This specialised division was created to handle the growing number of cybercrime cases such as online fraud and other computer-related offences, which have increasingly overwhelmed traditional criminal courts. The division’s formation highlights the urgent need for a focused legal framework to address the rising threat of cybercrime.
Another key initiative is the establishment of the Special Committee for the Study of Approaches to Regulating and Promoting the Use of Artificial Intelligence (AI) by the Thai Parliament in January 2024. This committee is tasked with exploring how AI can be harnessed for the benefit of the Thai people while mitigating potential risks. Importantly, the committee is composed not only of lawmakers but also subject matter experts from the private sector, ensuring a well-rounded approach that combines legislative insight with industry expertise. The committee’s findings and recommendations will be compiled into a comprehensive report, which will then be presented to the Thai parliament for consideration and potential legislative action.
Despite these advancements, it’s important to note that due to national policy focused on downsizing the government and budget constraints, it has become increasingly difficult in Thailand to establish new government agencies. Instead, new functions are typically integrated into existing agencies or managed by newly formed committees. The most recent significant development prior to these was the establishment of the Big Data Institute (Public Organisation) in 2023, which evolved from an institute within the Digital Economy Promotion Agency (DEPA).
The Evolving Regulatory Landscape
The most significant regulatory developments come from the Electronic Transactions Development Agency (ETDA) and the National Cyber Security Committee (NCSC), which have issued several key guidelines.
ETDA released two significant guidelines: the “Guidelines for the Creation of Electronic Legal Acts or Contracts” and the “Guidelines for Managing Advertisements on Digital Platform Services.” The former establishes standards for electronic legal acts, while the latter mandates stringent measures for digital platforms to oversee and manage advertisements, aiming to create a safer and more trustworthy online advertising ecosystem. These guidelines reflect growing concerns about online threats and misinformation, including the spread of false or misleading information, and the potential for online scams and fraud.
On the other hand, NCSC focused on establishing standards and guidelines for cybersecurity. They had released four major regulations, covering the promotion of cybersecurity service systems, minimum standards for data systems, guidelines for developing cybersecurity plans, and responsibilities of Critical Information Infrastructure (CII) entities and regulatory agencies. These guidelines aim to ensure best practices across all stages of cybersecurity, from planning to implementation. It had also introduced a cybersecurity quality certification system.
Additionally, the Department of Provincial Administration (DOPA) has published a guideline expanding its digital identity verification system to include facial recognition. This new service, integrated into the DOPA-Digital ID platform, enables real-time comparison of live facial images with government records. Both public and private sectors can now leverage this technology to streamline identity verification processes by applying to DOPA according to the guideline.
Key Digital Economy Initiatives
The Thai government has demonstrated strong support for digital and tech-related initiatives across various levels. Nationally, the government has introduced the “Ignite Thailand” campaign, which is divided into eight key areas, one of which focuses on establishing Thailand as a digital economy hub. The government aims to attract future industries such as Digital for All, Technology Innovation, and AI to expand their operations in Thailand. This includes fostering high-tech industries like semiconductor manufacturing, data centre establishment for cloud computing, and AI research and application. To support this vision, the government plans to offer financial aid, such as matching funds, make regulatory changes to ease business operations, and create a sandbox model to attract deep-tech companies to Thailand. However, it is important to note that these initiatives are still in the planning stage and are expected to be formulated into a strategic plan, led by the Ministry of Digital Economy for Society and other relevant government agencies.
On a ministerial level, the Ministry of Higher Education, Science, Research and Innovation (MHESI) is also playing a key role in promoting AI initiatives via “MHESI for AI”, which focuses on talent development. Additionally, the Electronic Transactions Development Agency (ETDA) is in the planning stages of establishing an AI Governance Center as a pilot project under its broader AI Thailand initiative. It will focus on creating new AI governance toolkits, standards, and regulations, which will support research across various sectors and provide guidance to regulators. The centre also aims to foster a global network of AI researchers and offer training, consulting, and advisory services on AI governance. Moreover, it plans to establish an AI testing facility and a sandbox environment for experimentation.
Moving forward
Overall, Thailand has made notable progress in addressing critical challenges, such as the growing threats of cybercrime and misinformation, as well as the need for standardised data handling practices. The country recognises the potential of artificial intelligence (AI) as a key driver of economic growth and is actively exploring ways to integrate AI into its economy. Efforts are also underway to cultivate AI-related talent and promote the growth of AI-driven businesses. However, a significant concern is the lack of specific legal frameworks for AI applications, especially in fields like law and medicine. Without clear regulations in place, the rapid adoption of AI could lead to unintended consequences, allowing AI to be used without oversight or accountability. Moreover, the absence of clear policy guidance could hinder the development of a skilled workforce, potentially leading to job displacement or unemployment if companies adopt AI technologies without adequate preparation and support.
Another key concern is that the pace of legal and regulatory adaptation remains cautious, particularly within government ministries that are not directly focused on innovation or digital affairs. While the development of clear laws and guidelines for emerging technologies like AI may take time, it is an area that warrants ongoing attention. It is crucial to make sure these technologies and best governance practices are gradually adopted across different sectors.
To further advance the digital economy, it is essential to solidify this goal as a national priority, ensuring it is perceived as a collective responsibility across all ministries and sectors. Additionally, Thailand should seek to enhance its collaboration with international governments and organisations, facilitating the exchange of ideas and best practices for tech-related policies. Addressing the digital divide is also crucial to ensure that all segments of society can benefit from technological advancements, thereby reducing disparities between large corporations and those with higher levels of education and those who may struggle to adopt new technologies.
These strategic recommendations align with the ongoing ASEAN Digital Economy Framework Agreement (DEFA) negotiations. DEFA aims to harmonise digital regulations, enhance cross-border digital trade, and foster cooperation among ASEAN countries to promote inclusive and sustainable economic growth in the digital era. By harmonising national efforts with DEFA’s objectives, Thailand contributes significantly to the vision of enhanced regional cooperation and a more inclusive digital ecosystem throughout ASEAN. This approach not only strengthens Thailand’s position within the evolving digital landscape but also propels the collective advancement of ASEAN’s digital capabilities. Ultimately, these efforts pave the way for a technologically empowered and equitable future not only for Thailand, but for all ASEAN member states.
About the writer:
Anont Tanaset is a Policy Specialist at the Office of National Higher Education Science Research and Innovation Policy Council (NXPO). His expertise lies in the development of innovation ecosystems and the formulation of innovation and technology laws and regulations, notably the Thai Bayh-Dole Act. Additionally, his previous experience includes developing policies to promote startup and entrepreneurship ecosystems in Thailand.
The views and recommendations expressed in this article are solely of the author/s and do not necessarily reflect the views and position of the Tech for Good Institute.
