Page 209 - THAILAND PRIVILEGE ANNUAL REPORT 2025

Annual Report 2025

Key Risk Factors Affecting the Company’s Operations
In 2025, the Company undertook initiatives to enhance service efficiency and introduce additional privileges
to align with the needs of members and target customer groups. This included the introduction of new products
specifically targeting customer segments with particular demand for long-term tourist visa services, as well as
the implementation of new business development plans (New Business) to generate increased revenue and strengthen
stability for the Company and its stakeholders.
Nevertheless, in 2025, the Company’s business operations were continuously exposed to changes in both
internal and external environments, which affected business operations both directly and indirectly. In addition,
the recovery of international tourist arrivals may not yet have returned to pre-COVID-19 levels. As a result,
the government has introduced tourism promotion policies aimed at facilitating travel and attracting tourists
to enter Thailand more easily, including:
• The issuance of a special tourist visa for tourism and remote working purposes (Destination Thailand Visa: DTV)
• The implementation of visa exemption measures (Free Visa) for tourists
• The development of systems and services for electronic passport (e-Passport) holders
• The implementation of automated passport control channels (Auto Channel)
• The EEC Visa under the Eastern Economic Corridor (EEC) initiative
Changes in climate conditions, economic circumstances, armed conflicts and criminal activities, as well as
advancements in technology and information systems, have intensified competition across various industries,
particularly within the tourism sector, including:
• Climate change and global warming conditions
• The situation along the Thai-Cambodian border
• Trade sanction policies and tariff barriers imposed by the United States
• Economic slowdown resulting from trade wars, leading to inflationary pressures and changes in interest rates
across multiple countries
• Appreciation of the Thai baht, resulting in higher membership card prices when converted into the currencies
of target markets
• Domestic tourism stimulation measures implemented by target countries, such as China, Russia, and South Korea
• Visa exemption (Free Visa) policies granted to tourists from the European Union and other countries
• Policies on residency and citizenship through the United States Gold Card program
• Visa policies of neighboring countries, such as Singapore (citizenship application), Malaysia (MM2H, PVIP),
Cambodia (CM2H), and Vietnam (Golden Visa)
• Transnational crime issues in neighboring countries that use Thailand as a transit route, such as scammers
and call center gangs
The aforementioned situations and developments may adversely affect the Company’s business operations,
potentially causing deviations from planned operations or established targets. Accordingly, to enable the Company
to respond to potential risks in a timely and effective manner, the Company applies risk management practices in
accordance with the COSO Integrated ERM Framework, which serves as a key tool to support the achievement of
the Company’s strategic objectives under the enterprise plan and the annual business plan for fiscal year 2025.
The Company has conducted risk identification and identified a total of ten (10) key risk factors, as follows:
RF1: Organizational profit does not meet the established targets
RF2: Revenue from membership card sales does not meet expectations
RF3: Development of secondary businesses (Second Growth Engine) does not achieve targeted outcomes
RF4: Membership renewal rates do not meet expectations
RF5: Information system security risks within the organization
RF6: Non-compliance with personal data protection laws
RF7: Occurrence of news or incidents adversely affecting the Company’s operations and corporate image
RF8: Workforce development is insufficient to support the Company’s operational plans
RF9: Investment return management does not meet targets
RF10: The Company’s sustainability (ESG) initiatives do not achieve established objectives

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