Illicit foreign stakes in firms 'widespread'

China Railway No.10 is “just the tip of the iceberg” in a wider problem involving illicit foreign business ownership in Thailand, said Sittiphol Viboonthanakul, chairman of the House Committee on Economic Development.

- AEKARACH SATTABURUTH SUPOJ WANCHAROEN

Mr Sittiphol said that over 300 companies with suspected nominee structures were registered last year alone, all allegedly tied to Chinese nationals.

“This is not an isolated case,” he said.

“We're seeing a surge in new companies where Thai nationals formally hold 51% of shares while the remaining 49% are owned by Chinese investors,” he said. “In many instances, the Thai shareholders are merely nominees.”

He cited the case of China Railway No.10, which has come under scrutiny for allegedly operating through Thai nominees in violation of foreign ownership laws.