PwC: Less than half of Thai companies entrust their compliance functions with strategic decisions

Many executives have yet to formulate plans to invest in technology for compliance monitoring and regulation interpretation. PwC Thailand advises Thai businesses to develop clear compliance strategies, appoint appropriate strategic compliance leaders, and invest in technology to effectively navigate increasingly complex regulatory changes.

Sinsiri Thangsombat, Assurance Partner at PwC Thailand, discussed the 'Global Compliance Survey 2025 - Thailand Report: Navigating the evolving compliance landscape.'

She observed that many Thai organisations continue to under prioritise their compliance functions. Only 42% of compliance leaders in Thailand reported having significant influence on strategic decisions, compared to 51% in the Asia Pacific region.

"Rapid changes in regulations, the industrial ecosystem, and risks at both macro and micro levels, coupled with evolving stakeholder expectations, render traditional business practices unsustainable.

"Executives must empower their compliance functions to play a central role in developing innovative compliance models. Granting strategic decision-making authority is a crucial first step that enables companies to effectively identify, address, and manage risks, while also safeguarding and creating long-term value for the organisation," Sinsiri said.

The Thailand Report is a part of PwC's Global Compliance Survey 2025. This survey gathered insights from 1,802 executives, including 36 executives in Thailand, collected between September and November 2024. Additionally, the report indicates that 61% of respondents plan to involve their compliance functions in business model innovation, and 58% seek their involvement in new product development.

Technology adoption on investigation and interpretation

Sinsiri further pointed to a lag in the adoption of compliance-related technology in Thai businesses compared to the Asia Pacific region.

In Thailand, 72% of survey respondents use technology for compliance training (compared to 81% in Asia Pacific), 62% for regulatory reporting (71% in Asia Pacific), and 57% for issue tracking (66% in Asia Pacific).

Yet 41% of Thai respondents have no plans to invest in compliance investigation through technology, and 35% have no intention of adopting technology for regulatory identification and interpretation. Sinsiri added that this hesitation is primarily due to the heavy reliance of compliance departments in Thailand on personal discretion.

"Thai companies are hesitant to invest in compliance technology compared to their regional counterparts, which could hinder the country's ability to tackle regulatory challenges effectively. This is critical when companies strive to innovate in product development and adopt new business models," she said.

In terms of compliance culture, the survey revealed that 44% of Thai respondents rated their organisation's compliance culture as moderate.

Key factors that significantly contribute to enhancing this culture include support from senior management (75%), training and communication with employees (53%), and having clear compliance policies, procedures and guidelines (33%).

"Compliance is not just about adhering to rules; it's about fostering a culture of doing the right thing, supported by management and embedded throughout the organisation.

"Business leaders should focus on establishing clear compliance strategies and plans, appointing capable leaders, and empowering compliance teams, alongside investing in necessary technologies. These measures will enable businesses to address regulatory changes effectively," Sinsiri said.