Law
OSMEP Tightens SME Procurement Rules to Prevent Fraud
Thailand’s Office of Small and Medium Enterprises Promotion (OSMEP) is implementing stricter Ultimate Beneficial Owner (UBO) verification for government procurement starting October 1, 2026.
According to a report by Khaosod Online Thailand, the Office of Small and Medium Enterprises Promotion (OSMEP) is upgrading its THAI SME-GP measures to ensure fair access to government procurement contracts. Starting October 1, 2026, the agency will mandate stricter verification of 'Ultimate Beneficial Owners' (UBO) to prevent ineligible entities from misrepresenting themselves as SMEs to gain preferential treatment.
OSMEP Deputy Director Wachira Kaewkor stated that the government procurement market remains a vital growth engine for local businesses. Since the program's inception in 2020, in collaboration with the Comptroller General's Department, SMEs have seen increased participation. Data shows that as of September 4, 2026, over 40,919 SMEs have secured government contracts. By 2026, the share of contract values held by SMEs reached 48.47%, up from 47.24% in 2024.
For residents and business owners in Thailand, this shift aims to increase transparency and ensure that the 20% preferential advantage intended for small businesses reaches legitimate local operators. While the new UBO requirements are set to take effect in October, the full scope of the verification process and how it may impact the administrative burden for current SME contractors remains to be confirmed. This initiative highlights the government's ongoing effort to prioritize local economic growth through public spending.
