Krabi becomes the next target in Thailand’s illegal business crackdown as more than 1,000 companies face investigation. Deputy Interior Minister Polpeera orders a money trail probe after 31 nominee businesses are identified.
The government’s sweeping crackdown on illegal businesses has reached Krabi, where more than 1,000 registered companies are now under investigation over suspected nominee ownership and 31 businesses have already been identified as nominee operations. Deputy Interior Minister Polpeera Suwannachawi has ordered a multi-agency money trail probe while extending the enforcement campaign beyond Phuket to target land ownership abuses, unlicensed hotels and organised criminal activity in one of Thailand’s fastest-growing tourist provinces.
Thousands of registered companies in Krabi are under investigation over suspected nominee ownership, with 31 businesses already identified as operating through nominee arrangements.
Deputy Interior Minister Polpeera Suwannachawi announced the findings on Saturday as he ordered an accelerated investigation into the money trail behind the businesses. The inquiry will examine both Thai and foreign nationals suspected of supporting illegal nominee structures.
Mr Polpeera chaired a policy meeting at 10.45 am on July 25 at Krabi Provincial Hall. The meeting took place in the Phanom Bencha Meeting Room on the fifth floor.
Those attending included Chaiwat Junthirapong, Secretary to the Minister of the Interior, government department heads, Members of Parliament from Krabi, district chiefs, local government administrators and other officials. The session reviewed government and Interior Ministry policies across the province.
Krabi nominee crackdown as more than 1,000 firms come under scrutiny in money trail probe
Notably, the nominee business issue has emerged as the meeting’s dominant enforcement priority. Mr Polpeera disclosed that more than 1,000 registered legal entities in Krabi had come under official suspicion. In addition, investigators had classified 133 companies as high risk. They had also identified 31 businesses as clear nominee operations. Those findings prompted an immediate expansion of the investigation.
As part of this, the Department of Land, the Department of Provincial Administration, the Ministry of Commerce and the Royal Thai Police will work together. The agencies will trace financial transactions linked to suspected nominee structures.
They will also examine both Thai and foreign nationals believed to have financed, supported or facilitated the businesses. Investigators will follow the movement of funds while reviewing company structures and ownership records.
Thailand prohibits foreigners from using Thai nominees to bypass restrictions on business ownership in protected sectors. Therefore, officials will closely examine financial links behind the suspected operations. The investigation will also scrutinise relationships between registered shareholders and those exercising actual control over the businesses.
Wider crackdown extends from Phuket as inspections target illegal businesses and hotels
Meanwhile, Mr Polpeera said the operation formed part of the government’s broader campaign against illegal businesses in leading tourist provinces. He has recently spearheaded a similar enforcement drive in Phuket. Krabi is now receiving the same level of scrutiny. However, he stressed that the inspections were not intended to undermine legitimate investment or tourism.
Instead, the inspections are designed to improve legal compliance and public safety. They will focus on building standards and fire escape systems. The government remains prepared to help businesses complete legal registration. However, establishments failing to meet legal standards will face permanent closure under existing legislation. Businesses posing safety risks will also be shut down.
Separately, Mr Polpeera warned that unlicensed hotels could become hideouts for transnational criminal groups. He said stricter enforcement would reduce those risks. It would also strengthen public safety and national security across the province.
On another front, the deputy minister addressed Thailand’s visa-free entry policy. He said the measure had supported health tourism and legitimate businesses. However, it had also created opportunities for criminals to enter Thailand while exploiting Thai people through illegal activities.
Visa policy and disputed land ownership come under review as officials investigate firms across Krabi
Future decisions to reduce or expand visa-free entry would require Cabinet consideration. National security and the wider economic impact would both be assessed before any changes.
Attention also turned to land ownership disputes. Mr Polpeera instructed the Department of Land to investigate cases involving foreigners or nominee groups holding legal land title deeds. At the same time, many local residents who had farmed land for generations still lacked legal documentation. He said that imbalance required close examination.
In response, the Department of Land will review the entire title issuance process where concerns arise. Mr Polpeera said he retained confidence in the professionalism and integrity of departmental officials.
Nevertheless, every suspicious case would be investigated thoroughly. Individuals connected with questionable title deeds would be summoned for questioning. Any official found to have acted corruptly would face prosecution without exception.
“Regarding the nominee business issue, it was found that there are over 1,000 registered legal entities in Krabi province that are under suspicion, with 133 in the high-risk group and 31 companies clearly identified as nominees.
Joint investigation ordered as agencies trace financial links behind suspected nominee networks
Therefore, we have integrated our efforts with the Department of Land, the Department of Provincial Administration, the Ministry of Commerce, and the Royal Thai Police to thoroughly investigate the financial transactions of both foreigners and Thais who are involved in supporting this activity.”
Beyond enforcement, the meeting also examined infrastructure problems affecting island communities. Mr Polpeera announced new electricity projects for Koh Hang and Koh Po in Koh Lanta district.
The Provincial Electricity Authority will accelerate funding for renewable energy systems on both islands. Koh Hang will receive a microgrid or small-scale solar farm with a capacity of about 300 kilowatts. Koh Po will receive a similar installation generating about 150 kilowatts.
Mr Polpeera said both projects would provide sufficient electricity for every household. Construction is expected to take about one year. During that period, the Provincial Electricity Authority will visit the islands every month. Officials will explain progress, answer questions and provide updates throughout construction.
Island power projects and renewable energy plans target electricity security for Koh Lanta
Looking ahead, additional investment may become necessary if the island populations continue to grow. Under those circumstances, authorities may consider laying underwater electricity cables linking nearby islands. Those connections would supplement the new renewable energy systems if future demand exceeds current capacity.
Water infrastructure also featured prominently during discussions. Mr Polpeera said he had coordinated with Deputy Interior Minister Jeseth Thaiseth on future planning.
Existing water pipelines are between 20 and 30 years old. Sea spray has accelerated their deterioration. Surveys will now be carried out before improvement plans are prepared. Funding will then be sought to replace ageing infrastructure and improve water pressure for residents.
Elsewhere, the Krabi Provincial Administrative Organisation is preparing to renovate the existing pier on Koh Pu. A new pontoon will also be constructed. The improvements are intended to strengthen public safety while improving access for island communities.
Krabi infrastructure drive expands with water upgrades, pier works and major transport investments
Mr Polpeera also highlighted Krabi’s economic prospects. He said the province had experienced significant growth since 2019. Women’s occupational groups had made an important contribution by generating income and supporting local businesses.
Larger transport projects are also planned. They include a ฿1.8 billion bridge project and an approximately ฿10 billion bypass road designed to strengthen logistics.
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At the same time, the deputy minister said development must proceed alongside environmental protection. Illegal logging has recently emerged as a problem in parts of the province.
Accordingly, he instructed the provincial governor to accelerate investigations and identify those responsible. He said infrastructure investment, stronger law enforcement and environmental oversight would advance together as government agencies increased scrutiny across Krabi.
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