The cabinet on Tuesday approved a draft ministerial regulation to loosen curbs on liquor production by small-scale distillers.

Under the new regulation, the minimum registered capital for producers of fermented beverages, including beer and wine, will be lifted. However, they must be companies registered under Thai law and Thai nationals must acquire at least 51% of the shares. The minimum registered capital requirement is currently 10 million baht.

The new regulation will scrap the minimum beer production of 100,000 litres per year. However, the minimum production capacities for whisky, brandy and gin at 30,000 litres a day and for rice whisky at 90,000 litres a day will remain the same.

People will also be able to apply for production licences online.

"This is to promote competition in the business while the state's interest through its excise tax collection and the product quality and safety standards will remain unchanged," a government spokesman said.

Dubbed the “progressive liquor bill”, it passed its first reading in parliament in June, and is now being scrutinised by a House panel.