The Southeast Asia Public Policy Institute (SEAPPI), in partnership with the Faculty of Law at Rangsit University, hosted a high-level roundtable in Bangkok to explore how Thailand can support innovation, investment, and entrepreneurship through an appropriate regulatory framework that takes into account Thailand's specific needs. The discussion accompanied the release of SEAPPI's new policy white paper, Shaping a Balanced Digital Framework in Thailand[1], which analyzes the country's evolving regulatory landscape through the lens of international experience and regional competitiveness.
The study includes a new economic analysis estimating that Thailand's proposed digital framework, which appears to model broad, EU Digital Markets Act-style platform regulation, could put THB 5-12 billion in SME revenue at risk annually[2], due to reduced promotional support, adjustments in digital fee structures, and slower rollout of innovative features and tools. Over the long term, under the proposed platform regulation, reduced investment in digital infrastructure and innovation could potentially stifle productivity and reduce Thailand's digital economy output by a cumulative THB 150-200 billion by 2030[i].
Thailand now has one of the fastest-growing digital economies in Southeast Asia.[3] Digital services play a central role in enabling trade, payments, logistics, and business growth, particularly for small and medium-sized businesses (SMEs) that rely on online channels to reach customers and operate efficiently. The digital economy contributed approximately 6 percent of GDP in 2023 and is projected to reach 11 percent by 2027[4]. This growth has been driven by open market access, widespread digital adoption, and low barriers to entry, which have allowed entrepreneurs, including small enterprises, rural merchants, and independent sellers, to participate in the national, regional and global economy at scale.
International comparison is central to the study. The implementation of Europe's Digital Markets Act has resulted in high compliance burdens and slowed the rollout of new product features, raising concern about its impact on innovation and growth. In contrast, Singapore, Japan, and South Korea have adopted consultative, and evidence-based approaches which avoid "broad" digital platform regulation in favor of transparency or narrow, specifically targeted reforms and yet are still able to address competitive risks. The white paper suggests that the proposed highly prescriptive and wide-reaching ex-ante obligations, similar to those seen in the European Union, could redirect resources away from product development and service improvement, dampening growth in sectors that rely heavily on platform-enabled digital trade. Such regulation could impact Thailand's attractiveness as a destination for digital innovation and investment when compared with other economies in Southeast Asia, which are taking a more considered and less interventionist approach.
Krisda Saengcharoensap, Director of Master of Laws Program, Faculty of Law at Rangsit University, emphasized Thailand's responsibility to calibrate regulation to its stage of digital economic development. "Digital platforms have been instrumental in expanding opportunity for Thai businesses and consumers. Our challenge is how to regulate in a way that promotes fairness while still encouraging innovation and entrepreneurship. Thailand must avoid choosing between innovation and accountability—we can and must achieve both. This requires regulatory design that is technically informed, proportionate, and responsive to real market conditions, not one-size-fits-all solutions."
Ed Ratcliffe, Executive Director of SEAPPI and lead author of the report, underscored that regulatory clarity and balance will affect Thailand's long-term competitiveness. "Thailand's digital economy is strong because it has been open, competitive, and entrepreneur-led. That is a strategic advantage. The decisions made now will determine whether Thailand continues to lead or risks slowing the growth and accessibility of its digital markets. The key is to develop an effects-based and innovation-friendly regulation—rules that strengthen trust and transparency without constraining the ability of Thai businesses to innovate, invest, and compete."
To support sustainable innovation and fair competition, the white paper recommends a transparent, effects-based approach to regulation that's targeted at identified harms that are not addressed by existing laws. New regulation should be drafted with industry consultation and should be supported by consistent coordination between relevant government agencies. Such alignment would help avoid overlapping requirements and reduce compliance uncertainty, ensuring that new rules strengthen transparency while preserving the competitiveness of SMEs that rely on digital platforms. This would support digital innovation, enhance productivity, and boost Thailand's attractiveness to investment.
The paper also notes that Thailand is well-positioned to take a leadership role in ASEAN as other economies consider their own digital governance frameworks. By advancing a practical, innovation-aligned model developed through structured consultation, Thailand can provide a regional example of how fairness and accountability can be reinforced without slowing digital growth.
