bkkandrew

First part sounds like an operating or systems glitsch, or a lack of communication with airline staff, and the lack of shops once you get to the gate is typical of most airports isn't it?

Plenty of little shops at the gates in Don Muang..

The last couple of days I've been coming to work I've had my bag checked at the entrance to MRT stations. The stairs have been roped off, so you're forced to use the escalator.

Has this been the case since New Year? Has there been a bomb threat directed at the MRT system?

They were doing this on ENTRY to the building at the airport also. Does anyone know if they are still doing this?

The answer may be to seek world domination of hairdressing!

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Global Insights FOREIGN BUSINESS ACT / FOREIGN INVESTOR REACTION

Pridiyathorn tries to ease fears, but foreigners wary

Joint chambers warn of blow to investment

CHATRUDEE THEPARAT & DARANA CHUDASRI

The government is prepared to extend the transition period for foreign-owned companies to comply with the Foreign Business Act if necessary, according to M.R. Pridiyathorn Devakula, the finance minister and deputy prime minister. Authorities would also annually review the business sectors set out under the so-called List 3 of the FBA to determine what sectors are ready for full liberalisation.

M.R. Pridiyathorn and other policymakers yesterday sought to ease investor concerns about the FBA reforms and insisted that Thailand remained open to foreign investment.

M.R. Pridiyathorn: Intention of changes is "not to impede foreign investment or create new obstacles" — SAROT MEKSOPHAWANNAKUL

''The intention of the changes is not to impede foreign investment or to create new obstacles to foreigners,'' M.R. Pridiyathorn said. ''We are actually relaxing the rules in some areas, and clarifying what the law actually is for those companies that don't know right now if they are in the right or the wrong.''

M.R. Pridiyathorn said reports that up to 40,000 foreign firms would be affected by the FBA changes were overblown.

''In reality, only 2,428 companies will potentially be affected. And of these firms, many are exempt due to Board of Investment privileges or because they operate under the [uS-Thai] Treaty of Amity,'' he said. ''Overall, only 1,337 companies are expected to have to restructure, with only 15 being companies listed on the Stock Exchange of Thailand.''

On Tuesday, the cabinet approved a plan to reform the 1999 FBA to address the widespread practice of nominee shareholdings long used to evade the 49% shareholding limit set under the law.

The definition of foreign companies will now be expanded to include either majority shareholdings, both direct and indirect, as well as firms where foreigners hold a majority in terms of voting rights.

Companies in breach of the majority shareholding limit must report to the Commerce Ministry within 90 days and restructure their operations within one year.

Firms in violation in terms of voting rights will be treated differently. Those operating under List 1 and List 2 of the FBA, which includes 22 sectors overall ranging from media, rice farming, transport and mining, would have two years to reduce foreign voting rights to a minority.

Companies currently operating under List 3, which includes 21 sectors, including services, would be ''grandfathered'' with no need to change their voting structures but would have to report their status to the Commerce Ministry within one year.

M.R. Pridiyathorn, who met with representatives of 28 foreign chambers of commerce yesterday, said the government was prepared to extend the transition period for firms to restructure if needed.

''To help reassure the foreign chambers, we will consider in the National Legislative Assembly extending the transition period for companies,'' he said.

''But one must be fair to the government as well. If [foreign chambers] ask for a 10-year period, we can't do this.''

Sectors on List 3 would also be reviewed on an annual basis, he added.

''We have not increased the number of sectors that remain under protection. And exporters and manufacturing companies are completely not involved,'' he said.

M.R. Pridiyathorn said telecommunications companies would also have to restructure if their foreign shareholdings were in violation of the limit. But in terms of voting rights, existing firms such as Advanced Info Service or DTAC would be grandfathered along with other companies operating in sectors under List 3.

The FBA reforms follow last year's investigation into the takeover of Shin Corp by Singapore's Temasek Holdings. The government has said Temasek used nominees to skirt the 49% shareholding limit.

Satit Chanjavanakul, the secretary-general of the Board of Investment, said projects that received privileges from the board would be unaffected by the changes.

Promoted projects were allowed to have up to 100% foreign ownership, and most were operating in manufacturing sectors excluded from the FBA, he said. Even after promotional privileges expired, the companies would continue to be exempt from the FBA rules, Mr Satit said.

But despite the official clarifications, analysts and foreign business leaders said the FBA reforms would continue to weigh on sentiment for the near future.

Peter Van Haren, the chairman of the Joint Foreign Chambers of Commerce (JFCC), said that while foreign investors better understood the government's intentions, few were comfortable with the reforms.

''We will submit new suggestions to the government within two weeks. The position of the JFCC continues to be to scrap List 3 altogether,'' he said. ''Frankly, an extension on the time for compliance does not help much, as foreign shareholders would still have to cut their stakes.''

Mr Van Haren warned that the reforms would definitely impact future investment in Thailand and increase the burden on companies to seek local partners.

But Dusit Nontanakorn, the secretary-general of the Thai Chamber of Commerce, doubted that many foreign firms would cut back their investments.

''They can do so if they want. We can't prevent that. But I'm confident that not many will do so,'' he said.

Prasarn Trairatvorakul, the president of Kasikornbank, said a review of the principles of restraining business competition from foreigners was long overdue.

But given the sensitivity of the issue, the authorities should consider the appropriate timing of any regulatory change.

''The time given for foreign companies to restructure their shareholdings and voting-right privileges isn't too short. But personally, what I believe is even more important is to consider the suitability of the FBA, the appropriateness of the timing and whether the foreign business community genuinely understands the changes or not,'' Dr Prasarn said.

Banluasak Pussarungsri, the manager of Bangkok Bank's macroeconomic analysis centre, agreed that the principles of the FBA should be reviewed.

He added that the vehement opposition to the changes voiced by the foreign business community deserved attention.

''I've never seen foreign investors come together on any one issue quite like this one,'' he said. ''We should listen to what they are saying.''

How does this effect or change things for foreigners who have bought property, a small house under a company name 49-51?

See:

http://www.thaivisa.com/forum/index.php?sh...p=1076106

From the Nation:

BURNING ISSUE

unfriendly to foreign investors? look around a bit

But timing of business law changes could have been better

If you think that Thai foreign business law is unfriendly to foreign investors, try Venezuela - or Japan.

This week, while the Cabinet was approving draft amendments to the Foreign Business Act, Venezuelan President Hugo Chavez was proposing to nationalise his country's energy and telecommunications sectors.

And in Japan, Citigroup has moved to sharply downsize its consumer-finance operations in response to stricter laws. The move was announced this week after Japan's parliament passed laws to place limits on rates and cap loans. Foreign companies will have to adjust to comply with the rules.

Jeerawat Na Thalang

The Nation

Well, if the junta are trying to take some cold comfort by events in Japan and Venezuala, consider:

Japan is the second biggest economy in the World and can really do what it likes. Venezuala is currently controlled by a goon, who has has decided to fritter away his country's lottery win (oil price increases), a decision that will be rued when the oil price drops and/or their oil runs out...

Thailand has neither a globalally influential economy, nor a lottery win of oil. Oh, and in case people on this board believe Thai Goon's assertion that tungston or tin production will propel Thailand towards world domination, consider that tungston is being dropped globally in its primary use as part of the effort to combat global warming and tin has largely is being replaced by aluminium in its primary market...

just wandered what is current status on this i knoe 20k was meant to be excempt ??? was this once a year

I transferred about $ 15,000 just after it was brought in no problem and transferred another $ 14,000 yesterday

Plan to transfer another 30-50k over next month or so

Yes i spend a lot mainly doing my house up

Hope you will still own it after the new rules..

ok mr wise guy my thai wife legally owns our house and our other house i own 3 condos and our daughter owns

2 condos - yes my whistling if my wife leaves shes welcome to house etc etc its well worth joy shes given me

over many years. And im spenmding a lot refurbishing our condos as well - i know the risks but ive lost lots more

in USA UK and earope from crocks etc than ive ever lost here and made more i guess

So has anyone an answer

wonder if your life's been as great as mine and if it all goes pair shaped at least i can maybe as good as you

Oh no, you will need far more practice than that

And yes, life has been kind to me, lucky I am not Buddist..

I have bought my house under a company name, I am a 49% share holder and the rest of the shares are split between thai people that I have never met. With the new rules of thai companies how will this effect me? advice would be much appreciated.

Well, as I understand it, you control the company through preferential shares. This is now to be seen as that, rather than technically being a "Thai" company, your holding company will be classed as "Alien". This means that you will be given 90-days to report and 1-year to correct, unless you can apply for an exclusion under the "Exclusion List (3)". Failure to gain an exclusion (unlikely, given that the land forms part of the National resources of Thailand) would require compliance - namely giving up 51% of the control of your property (perhaps you could let them use half the rooms ). Failure to comply voluntarily would lead to prosecution, with the remedial action inevitably involving forced removal of control, fines and jailtime...

Reuters has more information on the "request":

"I want to ask every television channel and every radio station not to broadcast messages or statements of the former prime minister and leaders of the past ruling party," General Winai Phattiyakul told a gathering of 100 media representatives.

"If they don't listen, you can kick them out of your station or if you can't use your judgement, I will use mine to help you run your station," Winai said.

I am sure the military would be helpful in running any station.

Toxin really has the junta rattled...

No, I'm not a troll. I am tthough someone who is now beginning to realise that I was an idiot for ever being taken in. I'm just not sure if everyone here has heard of someone who has had a bad experience of a bar girl who had one themselves but everyone seems damning of her and all bar girls. Does anyone not think there are some bar girls out there that really do want to get away from this life and do what they have to do. As Nok told me after what happened, I can never understand why she did this.

I always try to see the good in people and will still still feel she was a sweet girl but maybe tainted by working in Bangkok and having the wrong people around her (she told me one friend had been telling her because she knew she needed money that its ok she is engaged but we are not married so not to worry about it). Sometimes its the little things that make you feel someone cares about you, or things like the excitement that she showed when I would get in from work. All my housemates used to say that she clearly adored me from seeing her around me and how happy she looked.

I know she's not as cold hearted as people here tend to believe she is but the responses I got to my post are damning and have most likely pushed me towards finishing it.

I should never have let her go back to work in Bangkok and things would have been just fine. You'll all think I'm a sucker but I am truly gutted.

No - thats the thing. A long-term ex of mine married and now lives in Belfast. She still sleeps around, just recently with an old B/F, hours after her HONEYMOON ended and he went back to Uk a week in advance of her!!! She thinks nothing of contacting me for a quicky etc..

Her location has nothing to do with what she does. The only issue is her personality, which has now been exposed to you..

Which is precisely the difference that the junta are trying to eliminate in their ham-fisted way!

Personally, I think they're genuinely creating clarification while leaving plenty of room for manoeuvre

Are you managing the Sonthi PR Account?

These guys are out to hurt Thaksin at the expence of hurting their country.They must be having problems to do this.

It's a pity that they don't hold their country first.

If you refer to the recent foreign ownership law, it's a misunderstanding - the law does not apply retroactively, Shin sale will be judged according to the old laws. They plugged the loophole for the FUTURE, it doesn't help them with getting Thaksin in anyway.

So they are not going to force the Singapore government to change the ownership structure of the company?

Well, the truth is that this particular issue really hasn't been aired.. The Singaporeans are not known for rolling over and adopting the 'mai pen rai' attitude when it comes to business.

This part of the saga could run and run!

Yes. The referenced article should be compulsory reading for all the 'it won't add up to much' brigade. The FT is probably the most respected, widely published, financial publication worldwide. It is hardly known for sensationalism.

I fear that many, from the junta, to the people on this board, with their heads in the sand, will take much notice though..

Fancy legal footwork won't change the fact that you will not be able to have more than 50% of the company, however they choose to define that.

Why would you put your money under some else's control? Thais wouldn't do it, I'm sure, so why would foreigners?

Its very confusing. Its was said not to affect retail, but Big C and Makro are retail, so what;s going on?

And its all very well to say not many listed companies are affected, but most companies are unlisted, so what about them?

I expect many people will just decide its all too hard and go away. Result will be many thousands of Thais out of work. Very unfortunate.

Dear Bruce,

again you're confusing share ownership and control. These are not neccessarily the same.

Which is precisely the difference that the junta are trying to eliminate in their ham-fisted way!

Your posts always get on my nerves...

Really?

That's kinda curious, because I barely notice your posts . . .

Selective reading is often a guide to those who are ignorant...

Foreign investors who hold more than 50 per cent of voting rights must also reduce their voting rights within two years,"he added

If this is the case,the Thai share holders rule the company,they can even kick you out,or sell your proporty ?

So,lets forget the company thing ?

Put your property on a thai lady ,is this the only (also unsafe) thing to do?

Or simply rent and invest in countries that do not practice expropriation?

Some good news for a change.

Well, if Thaksin was behind the bombings, I wonder what his response to this slight will be..

Perhaps it's the inate arrogance of farangs who think they can manage Thai companies (with Thai staff and Thai customers) much better than . . ummm . . Thai managers, that makes them want to get rid of farang management. An arrogance which is summed up in this thread.

Having seen examples of farang managers in Thailand (loud, uncouth, wearing shoddy suits and stinking of beer from last night's whoremongering), I don't blame them for getting rid of them.

This thread is a disgrace.

No.

You are a disgrace. Every post I have read of yours is too. God bless the person that cuts your internet conmnection...

Ouch. Did I touch a nerve?

Your posts always get on my nerves...

Where can I find real time stock market reports?

http://www.settrade.com/login.jsp?txtBrokerId=IPO

Free orchids from TF members on departure.

Who are they?

just wandered what is current status on this i knoe 20k was meant to be excempt ??? was this once a year

I transferred about $ 15,000 just after it was brought in no problem and transferred another $ 14,000 yesterday

Plan to transfer another 30-50k over next month or so

Yes i spend a lot mainly doing my house up

Hope you will still own it after the new rules..

Perhaps it's the inate arrogance of farangs who think they can manage Thai companies (with Thai staff and Thai customers) much better than . . ummm . . Thai managers, that makes them want to get rid of farang management. An arrogance which is summed up in this thread.

Having seen examples of farang managers in Thailand (loud, uncouth, wearing shoddy suits and stinking of beer from last night's whoremongering), I don't blame them for getting rid of them.

This thread is a disgrace.

No.

You are a disgrace. Every post I have read of yours is too. God bless the person that cuts your internet conmnection...

And...

Thai stocks tumble on approval of new business rules

Thai share prices were down 2.03 percent in Tuesday afternoon trade following the announcement that the Cabinet had approved new regulations on foreign businesses here, dealers said.

Under rules approved "in principle" by the cabinet, foreign investors will be limited to holding no more than 50 percent of the shares or the voting rights in companies, although the law will not take effect immediately.

Analysts fear the revised law could force foreign companies to sell off huge amounts of stock to Thai investors who might not be able to absorb a large number of shares over a short period.

The Stock Exchange of Thailand (SET) was down 12.84 points to 620.98 while the blue chip SET 50 index fell 9.28 points to 431.89.

C/O The Nation..

Meanwhile, the current fall is 16.72 (nearly 3%) and falling... (Source - SET)

BREAKING NEWS

Cabinet approves changes for foreign firms

(Bangkokpost.com, Agencies)

The Cabinet on Tuesday approved in principle changes to regulations on foreign businesses but the law still must go before a panel of legal experts for revisions, a deputy spokeswoman said.

"They approved in principle the Foreign Business Act but the Council of State will study the legal details for proper implementation,'' said Netrpreeya Chumchaiyo, deputy government spokeswoman said.

The crux of the changes centres on the redefination of the word ''alien''. That means any company in which foreign partners hold more than 50 percent of the voting rights, including the voting rights of their nominees, will be considered as alien company.

The amended law will, from now, go to the Council of State which will fine-tune it before it is submitted to the National Legislative Assembly for debate.

Prime Minister Surayud Chulanont's cabinet met for nearly five hours Tuesday to consider the changes, which could redefine shareholder rights and ownership structures for local subsidiaries of international firms.

Commerce Minister Krirk-krai Jirapaet was set to brief the revised Foreign Business Act to reporters at 3 p.m. on Tuesday.

The foreign business community has warned of potentially severe economic fallout from the mooted changes and urged the government to delay the new measures by six months.

Companies have traditionally set up their operations in Thailand so that the local subsidiaries are nominally owned by Thais but controlled by foreigners.

Immediately after the Cabinet's decision was announced, the stock market reacted by falling 10.6 points or 1.64 percent. The index plunged further by 14.45 points to 617.43 points before it rebounded to 620 points.

Analysts fear the revised law could force foreign companies to sell off huge amounts of stock to Thai investors, who might not be able to absorb a large number of shares over a short period.

Oh they'll "absorb" them all right. They be given them!!!

Okay, a lot of people seem totally confused.

Let's try to stick to the text.

http://www.dbd.go.th/eng/law/fba_e1999.phtml

With one example.

-I want to open a restaurant, a factory to make frozen food or meals, a website to sell stuff, a bar, etc.

Buzz !

You are on List 3. Wrong. You may ask however for a special authorization.

Only a crazy businessman would do it. So the solution is to bypass the FBA, by saying that your company is "thai".

Easy to do before : take some nominees (your driver, secretary, or your maid like did our dear Thaksin, or ask your lawyer he has a bag full of professional nominees). They have on the paper the majority of shares. Your company is "thai", so you can have an activity prohibited by FBA. You keep vote rights. You stay in full control.

This has been working like that since 1972. Everybody knows it.

-The revolution today : they have changed the rule to classify a company thai or foreigner. With voting rights.

-at that point : you have 2 solutions :

1- you say "ok my company is foreign", you want to keep share and voting rights. So you try to ask for a special authorization under FBA. Good luck...

2- you change the shareholding and/or voting rights structure of your company, to stay thai. You loose control.

So basically : you are fxxxxed.

As I say before : it's a real revolution. And it's even bigger than visa issue or capital control of BOT.

At that point, there is only 2 ways to get out of from what look like a total mess :

1-the gvt will quickly make a U, Z, or X turn (to avoid loose of face, and to ease the mess)

2-Play with the content of list 3.

If they remove all the items of list 3, then problem solved. Everybody is happy again. You can keep shares and voting rights, your company will be classified as "foreign" but with an activity that is not forbidden.

So the key issue now is : the content of List 3 ("The business which Thai nationals are not yet ready to compete with foreigners")

http://www.dbd.go.th/eng/law/fba_e1999.phtml

Very good post. I only wish it was compulsory reading for all foreigners considering setting up businesses or attempting to purchase property here...

the 3pm press conference may have the answers ???

Well, no. As far as I read it they have gone for the full nuclear button, i.e. non-amended version of the amendment (if you can follow that) . The amendments and/or delay was what was being sought by foreign chambers etc..

Guess this is not what S&P had in mind when they called for "decisive action"!!