Page 210 - THAILAND PRIVILEGE ANNUAL REPORT 2025

To ensure effective risk management, the Company has implemented an enterprise-wide risk management
and internal control policy. Clear communication has been established, and all departments, in their capacity as
Risk Owners, are required to participate in the analysis and identification of risks. A Risk Management Working
Committee has been appointed to oversee, monitor, and evaluate the implementation of the risk management plan.
The committee comprises executives at the departmental level across the organization. Furthermore, the Company
requires quarterly reporting on the performance of the risk management plan to the Risk Management and Internal
Control Subcommittee and the Board of Directors, to ensure continuous oversight, monitoring, and follow-up of risk
status. Feedback and recommendations from the Subcommittee and the Board are incorporated into the ongoing
enhancement and improvement of the Company’s risk management practices. Risk management is integrated as
a core component of the Company’s organizational culture, contributing to value creation and long-term stability
for the benefit of all stakeholders. These practices are aligned with the principles of Good Corporate Governance
and sustainable business development based on Environmental, Social, and Governance (ESG) principles.

Business Conditions and Operating Environment of the Company
In 2025, Thailand Privilege Card Co., Ltd. operated under volatile economic and social conditions arising
from both external and domestic factors, which affected the Company’s operations across multiple dimensions.
These included government policies, macroeconomic conditions, the competitive landscape, and the behavior of foreign
customer groups that constitute the Company’s primary target market. Details are as follows:

1. External Factors
1.1 Government Policies and Measures
The government implemented various economic stimulus measures and tourism promotion initiatives
to increase the number of tourists and long-term residents in Thailand, including:
• Visa exemption (Free Visa) policies for foreign nationals
• The issuance of the Digital Tourism Visa (DTV), with a validity period of five years, low application fees,
and a fast approval process
• Long-Term Resident Visa (LTR) and Golden Visa programs targeting foreign nationals with high
economic potential
• Promotion measures under the Eastern Economic Corridor (EEC), which facilitate the entry of foreign
experts and professionals
While these measures have had a positive impact on the overall national economy, they may also result in
direct competition with the Thailand Privilege membership card program, as such measures similarly offer long-term
residency privileges.
1.2 Global Economic and Geopolitical Conditions
Economic slowdowns in major economies, including China, the United States, and European countries,
have reduced purchasing power among target customer groups and led to a decline in international travel.
At the same time, domestic tourism promotion policies in certain countries, such as China and Japan, combined
with currency depreciation, have further reduced travel to Thailand.
Geopolitical tensions, including conflicts between Russia and Ukraine, Israel and Iran, and India and
Pakistan, have resulted in changes to Europe-Asia flight routes and increased travel costs. These factors have caused
tourists from Europe and the Middle East to delay or reduce travel to Thailand. In addition, instability along
the Thai-Cambodian border has adversely affected tourist confidence within the region.
1.3 Country Image and Investor Confidence
Criminal activities involving foreign nationals, such as illicit business operations, call center scams and
online fraud, have negatively affected Thailand’s image and the confidence of foreign nationals considering travel
to or long-term residency in Thailand. Although the government has continuously implemented suppression and
enforcement measures, these issues remain areas that require close monitoring.

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