amarka

October 25, 2008

I think Thai Baht will go to around 43 to USD during the next year. As soon as the Thai Central Bank stops supporting The Baht it will go pretty fast. Just look at the Korean currency.
Does anyone know how large deposit amount is insured in case the bank goes bankrupt.

I do not think there is any deposit insurance. Have 1.5 mill. Baht in a CD, will mature Dec. 23th have it with Siam Com.

Plan to build a house here in Chiang Rai. See some of newly build houses and business complexes finished here are still

sitting there empty. This world wide recession will hit LOS very hard. Baht is way to strong and exports drying up.

US $ 34.5 Baht ... Pound 53.1...Euro 43.1 ..Aussie 20.9 Tourism is almost gone. With those exchange rates no one will

invest here. I have the most loveliest Thai wife and the house is for her, we already have a beautiful piece of property

1 rai all walled in with a stainless steel gate. I am American and I do not like the exchange rate , I feel sorry for all of you

hi hardy...

according to the world bank, losses amongst ex pats that can be attributed to foreign wifes/girlfriends from asia, espacially thailand, contributed to more losses to ex pat males than the sub prime crises in the last 6 months

a worrying thought.... by the way steel has fallen by 50% in thailand in the last 2 months!

amarka

April 29, 2008

hi guys...

whats all the fuss about....

i mean the average UK taxi driver would have done the same .. would he not.....

or the average ami taxi driver....

cant just be the thais that are honest....

amarka

January 11, 2008

Amarka,
If your contract specifies a penalty for a late turnover, you'll probably get the unit free ; )

Hang in there!

hi..

to be honest with you i shall be happy enough if it is finished in the next 18 months...

the news below seems to indicate that it will..........

quote.....

"

Bangkok Post of Jan 8 shows a photo of Lehman Bros handing a 10.4 billion baht cheque to Grande Asset as was expected. So perhaps now all will be well, and the eyesores of the Regent and Crowne Plaza (particularly) half completed structures will once again start to take form. "

amarka

January 9, 2008

I don't wish to see your project fail Amarka. Good luck and hope you take possession soonest. TG2

hi...

thanks for that!

amarka

January 7, 2008

hi...
i have a signed contract for a condo in the Regents residences. its says completion will be December 2006.

i signed the contract in march 2005.

now the sales people say December 2007. thats a whole year late already.

does anyone else have a contract for completion for December 2006?

what can be done about this? i have written to the Regents and they dont reply.

any sensible comments welcome.

happy new year to everyone

amarka

Sorry to say....

U've lost ur money.

G/A is broke.

hi guys....

seems like someone is not telling the truth here....

amarka

http://www.bangkokpost.com/Yourmoney/07Jan2008_money008.php today (7 Jan 2008) regarding Grande Asset:

With the political and economic climate looking more hopeful after the uccessful completion of the election, more foreign investment funds are expected to flow into Thailand, which will have a healthy knock-on effect for companies such as Grande Asset Development Plc.

The SET-listed hotel and condominium developer recently closed a 10.4- billion-baht financing package with an affiliate of the US investment bank Lehman Brothers. "That will probably be the most significant such transaction in quite some time," said Markland Blaiklock, Grande Asset's chief executive officer.......

Grande Asset is counting on both large- and small-scale foreign investment picking up. While it awaits fresh developments, it has stopped selling the remaining condominium units at The Regent Hotel and Residences, between Sukhumvit sois 11 and 13 and due for completion in 2009, and The Sails beachfront condominium in Pattaya........

At The Regent Bangkok Hotel and Residences, the company's last realised price was about 120,000 baht a square metre and it sees an opportunity to reach 140,000 baht this year.

It would be interesting if you can elaborate on the source of this rumor, or is this just mischief. Either way kay sera sera... Lets wait and see.

"With the political and economic climate looking more hopeful after the successful completion of the election"

Are we talking about the recent Thai Elections ???? With an opening remark like that ,might as well say "pigs fly "as well

Not even politicians are talking like that

hi...

my comments were more to answer the funding question than the political one...

it seems that G/A has secured funding for the Regents - is that not the case...

amarka

I understand ,just when i see comments like that in Real Estate Sections of Newspapers it is a worry

anyway below is what the funding is , it is in the form of a debenture and has some conditions attached ,

that puts pressure on GA , cannot understand why not sell what they have to pay off debt while it awaits "fresh developments ",

something not quite right ,

Grande Asset's Bt12-bn bonds

Cash-strapped Grande Asset Development will place secured floating debentures worth up to Bt12 billion with Lehman Brothers Commercial Corporation Asia, a firm associated with its major shareholder, to move ahead with its resort and residential projects.

Thanathip Vidhayasirinum, managing director of Sage Capital, Grande Asset's financial adviser, said yesterday that with the political uncertainty, economic slowdown and delay in construction projects, Grande Asset's internal cash flow had dried up to

the point where it can no longer work on its eight projects and redeem its debts.

Grande Asset faces a shortfall of Bt7.51 billion to finish its projects and also Bt981.16 million in debt falling due in the coming year, he said.

The short-term debt obligation does not take into account a Bt1.34-billion loan maturing in December that would not be refinanced.

"With the current situation, financial institutions have tightened loan scrutiny and it is more difficult to tap funding sources," Thanathip said.

"We tried in vain to secure a loan from local or overseas financial institutions. So Lehman Brothers Commercial Corporation Asia's financial support is a godsend as it can increase Grande Asset's ability to expand in the future and project a good image to consumers and investors."

However, the debentures will increase Grande Asset's leverage and interest expenses, he said.

In case of default, the company might lose all its projects except the Hua Hin Blue Lagoon Resort and Bangkok's Trendy Condominium, which were recently mortgaged to financial institutions.

Giant Mauritius Holdings, owned by US-based investment banking giant Lehman Brothers, and Hotel & Property Development, a Thai company, last year acquired 43.23 per cent of Grande Asset.

hi..

thanks for that detail.

it just confirms to me that the regents is financed and will complete, albeit late.

i cant see Lehman brothers letting this one slip.

so the rumors..... were just rumors...

i also dont believe that the LB are so stupid to extend loans if they feel that the risk of default is too high. the risk assesment department has surely done their homework on this one and has given GA the green light!!!!

good news for all of us - except those wishing the project to fail!

amarka

January 7, 2008

hi...
i have a signed contract for a condo in the Regents residences. its says completion will be December 2006.

i signed the contract in march 2005.

now the sales people say December 2007. thats a whole year late already.

does anyone else have a contract for completion for December 2006?

what can be done about this? i have written to the Regents and they dont reply.

any sensible comments welcome.

happy new year to everyone

amarka

Sorry to say....

U've lost ur money.

G/A is broke.

hi guys....

seems like someone is not telling the truth here....

amarka

http://www.bangkokpost.com/Yourmoney/07Jan2008_money008.php today (7 Jan 2008) regarding Grande Asset:

With the political and economic climate looking more hopeful after the uccessful completion of the election, more foreign investment funds are expected to flow into Thailand, which will have a healthy knock-on effect for companies such as Grande Asset Development Plc.

The SET-listed hotel and condominium developer recently closed a 10.4- billion-baht financing package with an affiliate of the US investment bank Lehman Brothers. "That will probably be the most significant such transaction in quite some time," said Markland Blaiklock, Grande Asset's chief executive officer.......

Grande Asset is counting on both large- and small-scale foreign investment picking up. While it awaits fresh developments, it has stopped selling the remaining condominium units at The Regent Hotel and Residences, between Sukhumvit sois 11 and 13 and due for completion in 2009, and The Sails beachfront condominium in Pattaya........

At The Regent Bangkok Hotel and Residences, the company's last realised price was about 120,000 baht a square metre and it sees an opportunity to reach 140,000 baht this year.

It would be interesting if you can elaborate on the source of this rumor, or is this just mischief. Either way kay sera sera... Lets wait and see.

"With the political and economic climate looking more hopeful after the successful completion of the election"

Are we talking about the recent Thai Elections ???? With an opening remark like that ,might as well say "pigs fly "as well

Not even politicians are talking like that

hi...

my comments were more to answer the funding question than the political one...

it seems that G/A has secured funding for the Regents - is that not the case...

amarka

January 7, 2008

hi...
i have a signed contract for a condo in the Regents residences. its says completion will be December 2006.

i signed the contract in march 2005.

now the sales people say December 2007. thats a whole year late already.

does anyone else have a contract for completion for December 2006?

what can be done about this? i have written to the Regents and they dont reply.

any sensible comments welcome.

happy new year to everyone

amarka

Sorry to say....

U've lost ur money.

G/A is broke.

hi guys....

seems like someone is not telling the truth here....

amarka

http://www.bangkokpost.com/Yourmoney/07Jan2008_money008.php today (7 Jan 2008) regarding Grande Asset:

With the political and economic climate looking more hopeful after the uccessful completion of the election, more foreign investment funds are expected to flow into Thailand, which will have a healthy knock-on effect for companies such as Grande Asset Development Plc.

The SET-listed hotel and condominium developer recently closed a 10.4- billion-baht financing package with an affiliate of the US investment bank Lehman Brothers. "That will probably be the most significant such transaction in quite some time," said Markland Blaiklock, Grande Asset's chief executive officer.......

Grande Asset is counting on both large- and small-scale foreign investment picking up. While it awaits fresh developments, it has stopped selling the remaining condominium units at The Regent Hotel and Residences, between Sukhumvit sois 11 and 13 and due for completion in 2009, and The Sails beachfront condominium in Pattaya........

At The Regent Bangkok Hotel and Residences, the company's last realised price was about 120,000 baht a square metre and it sees an opportunity to reach 140,000 baht this year.

It would be interesting if you can elaborate on the source of this rumor, or is this just mischief. Either way kay sera sera... Lets wait and see.

December 29, 2007

Was article in yesterday's Post about Grande getting some possible more funding from, was it Lehman Bros. or some US investment bank. Also, apparently they have hired some USA consultancy to give all their products a top to bottom review for economic viability

Why would a U.S. investment bank put money into a pretty dodgy Thai real estate project? Sub-prime crisis has already put U.S. banking into a tailspan the last thing they would be doing is gambling on poorly planned third world residential development projects. hel_l, if they do that then they might as well issue some more sub-prime loans instead. The return might actually be better in the latter scenario.

hi...

oooh wow...

lot of sad junkies here.....

real estate is risk....yes??... profits are big when it comes off!!...... possibly zero when it fails ....

what are you all moaning about.....??

its a top location ...

the project is going through new number crunching routine and construction shall start again soon.....

if you cant handle the heat.... get out of the fire.......

go and have dinner with grandma instead and dont bother me with your tittle tattle tales of endless depression..... its only money anyway!

amarka

December 27, 2007

And about somebodies point of how Taksin is no more corrupt that his predacessors...SO WHAT!? So by that rationel, if any German Leader is any less cruel than Hitler, we should let it be???? There will be a time when Thailand finally conquers corruption, sooner is better than later. Lets try to make it happen.

Comparing Thaksin with Hitler is probably not the best example. Until there's someone better than Thaksin, I'd rather have Thaksin who pockets money for himself and does something for the country, than the current government and its allies who also pocket money but do nothing for the country.

hi....

a valid point.....

mr T has the current "government" against him..... the junta.... and the whole paid off tribe........

he is out of the country....

people are afraid to vote for him.... yes.... many are afraid.......

but still " his party" take the biggest share of the votes.....

so now he has a few months to erode the military's power still further until he returns.....

if he can achieve all of this without even being in the country..... there must be a lot of woried people in thailand wondering what he wll achieve when he gets back and where all this leaves them......... presumably in jail?

democracy is scuh good fun!

amarka

December 23, 2007

hi....

yes it looks like even though ppp won the democrats might sneak past the post and be in power for a few months.....

but.... anything is better than the illigal regime of the last 15 months......

there will surely be another election next year... the main thing now is that the military are out and that democracy rules....

peace and stability are what is needed now.... another coup would really ruin things for everyone...

amarka

Further reports indicate that there will definitely be yellow and red cards handed out for this election, predicted to be as many as 25.
Ruam Jai Thai Chart Pattana said to be likely to join with Puea Pandin and Chart Thai.

As things stand, if all parties join with the Democrats, that would give them 256 seats, still quite weak - but the potential gain from winning by-elections which arise as a result of yellow and red cards would also likely favor the Democrats and possibly give them a reasonably strong coalition.

December 23, 2007

hi...

i agree!

amarka

Let me get this straight in my head. Thaksin and his henchmen ran the country like their own business and ladeled off the cream. They became hated by the country for selling a telecommunications company to the Singaporians which lead to paranoid panic amongst the populace. Aformentioned people were ousted and ran for the hills with sacks of cash. A trip to the courts led to little more than musical chairs amongst the parties. A little over a year later Samak, whose every word smaks of arrogence, reaches the top with, along with a few vague policies, and vows to bring Thaksin back.
It seems the anti-vote buying people are as effective as the anti-elephants in Bangkok police.

Good to know that Chalerm and his non-cop killing children are close by.

Apparently you need to get out of BKK more often Mr. Shinawatra became hated not by the country but by the Thai elite in BKK, in most of the country (and by thai expats worldwide) he is still held in very high esteem. If the outcome of the election is as has been represented here then I would think that Thaksin will not only return, but may very well assume a position similiar to the one that Mr. Putin has ordained himself in Russia! Hopefully over the coming weeks the new government can get organized and unified (to whatever degree that is possible) and show the world that Thailand is a stable democracy and a safe and reliable place to do business and to invest in. If on the other hand there is bloodshed or a lot of public infighting between the new government factions, then that could have just the opposite effect and the thai economy and market could take a substantial downturn. Lets hope the former is the scenario that plays out, even though the Thaksin haters may not like it, it is clearly the best path for the Thai people!

December 23, 2007

hi guys...

so now you see - Mr T will be back. he and his party have won without him even being there.

the military have had their coup and will not attempt another one - i hope - if they do then thailand goes back to the dark ages....

what will happen to all those traitors of democracy i wonder.... i suspect a lot of nail biting is going on now...

thailand has suffered enough over the last year or so because of the coup......

long live democracy....

amarka

October 14, 2007

hi,

so it looks like we are actually saying the same thing - 2009

unless there are more delays of course.

Regents still say end of 2008.

time will tell....

amarka

ahhhh......I MEANT the delays on top of delays.....
at the rate they are going 2009 is optimistic...

Im glad you can "wait and wait and wait"

October 13, 2007

ahhhh i meant another six months on top of the other delays you silly ninny!

whats the problem? did you invest there?

i did and i can wait and wait and wait.... no problem

amarka

ah...
shucks...

guess i was thinking of one of my developements - where we go from conception to completion in 15 months incliding the furniture/fittings and 100% sellout...

never mind - perhaps it will take another 6 months or so...

i bought in the regents for its location - so 6 months later i guess nothing will change...

amarka

6 months! you mean 2 years and 6 months

June 18, 2007

hi guys...

yes all true.. and thats what made me search for a decent place to live and bring up my kids.... and for obvious reasons its not thailand.....lol

yes there are places that exist like the U.K in the 60's.... not too many laws and police that drink and drive as well.....

we have all the mod cons here - but apart from that its like when i was young, kids go out playing by themsleves and women still wear dresses and men the pants!!...

such places still do exist...

but not in the U.K or anywhere esle in the westonised/Mcdonalised world....

amarka -

April 10, 2007

hi George,

is this really correct... surprised no one else has commented?????

amarka

[b]However, they were glad the Commerce Ministry was willing to make an alteration of voting rights to ensure it complies with the World Trade Organization agreement on the investment liberalisation.[/b]

Foreign investors in Thailand seek business act clarification
BANGKOK: -- Foreign investors in Thailand have sought clarification on the need to amend the kingdom's Foreign Business Law, saying they feared it would undermine investor confidence and discourage foreign capital inflows.

They made the move at a seminar on " Public Participation: Foreign Business Bill" jointly organised by the National Economic and Social Advisory Council and the Joint Private-Sector Committee to heed opinions by many parties.

Stephen Frost, a board member of the British Chamber of Commerce in Bangkok, said foreign investors had respected Thailand's sovereignty in amending laws governing the supervision of foreign investors investing in the country.

But they viewed the amended FBA had a broad definition and ambiguity, which could lead to a different interpretation.

To ensure justice, he said, they needed clarity for the definition of "foreigner." Otherwise, Thailand's competition in attracting investment from China, India, Malaysia, and Vietnam would be affected.

Jean Jacques Bouflet, European Union trade counsellor and representative of the Foreign Chamber of Commerce, said the chamber had submitted letters to embassies of six members of the European Union, expressing concerns about limitations under the FBA.

They asked the Thai government to pay an attention to the matter since the investment is different from an ownership.

[b]However, they were glad the Commerce Ministry was willing to make an alteration of voting rights to ensure it complies with the World Trade Organization agreement on the investment liberalisation.[/b]

--TNA 2007-04-10

February 28, 2007

As obnoxious as he was, things in Thailand sure were a lot better with Thaksin and his buddies running the show! The world never seems to go backwards though, so who's next?

hi...

ahha ....

slowly but surely one is beggining to understand.... just that its too late now.....

wont say i said so...but.....

Thailand was a lot better off 9 months ago than it is now... in almost every respect, now the current imposed team is falling apart because they simply cannot do the job....

amarka

February 25, 2007

Can anybody confirm if they leave all of the deckchairs and tables out at this location?....if they don't then these girls must have had company, you don't go to the beach and set-up a table and 6 chairs if there are only 2 of you. Also bottles of wine are not readily available at 7/11 last time I looked. These girls were comfortable enough to have swam, hence the towel around the midrif of the lady in white and no shorts/skirt. This looks like friendly girls get whacked by companion(s) doing something they planned to do and had done before. They have bikini's and towels, wine and a bottle of strong stuff from hotel or shop. You ever try getting out of a deck chair half cut/drugged (on drugs?....maybe) and now on the wrong end of a load of bullets! B4 anyone shouts me down for calling the girls junkies, please don't, I am not. Look at my earlier posts, nothing but sympathy for these poor girls. Just exploring the possibilities.

hi...

yes something strange...

if one was shot in the back and the other the stomach and they are both left sitting next to each other and neither of them moved after the first one was shot perhaps this suggests they were asleep?? drugged/drunk...... this was done with the same gun right ?

a 9mm is an expenisve gun anywhere........ makes one wonder.....

on holiday ? ... seems so for two weeks ?

crime scene is all messed up anyway....

i read a lot about all sorts of crimes on Thaivisa.... and there is always tons of speculation .... mafia, prostitutes...... i guess you guys in pataya know a bit more of what is going on down there....

does anything actually ever get solved...

should be relatively easy to prove if they were just on holiday - this would then exclude the mafia prostitution angle....?

amarka

February 21, 2007

The report is of course inaccurate. After all the arson attacks on schools and murders were already in full swing under the Chuan I and II governments. We should not forget that it is not Thaksin who pulled the trigger but his army. Mister Sonthi who staged the putsch, was in charge of the South for almost btwo years. And he was the one who never had enough powers and wanted more. These days when it starts raining they blame it on Thaksin. But Sonthi was right, he is doing a much better job in the South. Maybe he should encourage ALL Muslims to break the law and officially marry multiple women. Than they do not have time anymore. Funny was also the picture of the man, sought for the Bangkok New year bombings. Blamed Sonthi and fellow crooks it on the former government , now it seems that the only suspect with a name is a Southern Bomber and Arsonist! Keep on the good work Sonthi, it is a typical case of SOM NAM NAA!

hi...

ha ha ha....

only what 7 months to go?... and i am not talking about the elections any more ... and neither is anyone else... this junta wants to stay... i am talking about the WTO and the world bank and when they will pull the plug.....

either thailand turns the corner soon or its bye bye democracy.....

amarka

February 17, 2007

Having said that, I can tell you the feeling here in Singapore is that Thailand has turned into a true banana republic.
This little island cannot afford to make too any enemies, especially not where they have huge investments, so saying that they were aware of the wrongs of the Shin deal is ludicrous - Singapore would not jeopardise countless billions in investment for a short-term shady deal.

Oh please, Singapore is no virgin to shady deals in the region, especially up in Burma. But the folks in Singapore are very astute business people and those involved would have known and gamed that this deal with the sitting Thai Prime Minister was, from the Thai perspective due to the lack of taxation on Shinwat, a very shady deal indeed, and decided that the profits were worth the risks.

But I do find it humerous that the Chinese down in Singapore feel the Chinese in Thailand are running a "banana republic".

hi...

banana republic... headless chickens....

what do you expect from this government.... they overthrow the elected leader and then start all sorts of issues..... they dont have the experience or know how to govern... or make economic decisions...

try to undo legal business deals that are already completed - finished!

call currently legal business setups illigal

deny foreigners any way of owning more than 49% in thai companies....... ( actually there are still ways... lol )

most business communities are against thailand rignt now and that is a great shame....

did one good thing though... getting rid of the expat wasters with no real jobs or income... but that was on the cards anyway...

only what - 7 months to go.....

lets see what happens next!

amarka

February 15, 2007

It would be easy to jump on the bandwagon and say scumbag..he deserved it etc etc.
However if it turns out that he did not commit suicide then he was murdered. It is not summary justice it is murder. And that is what you are all cheering.

We are supposed to live in a civilised society , but no society is civilised if the rule of law is not respected. 10 years would have been an appropriate punishment , murder is not.

hi...

yes this looks like murder....

they murdered this sick old man.....

yes he commited horrid crimes himself - but so did the girls so called helpers and friends.....

even though he deserved severe punishment and maybe a death sentence if found guilty its the process that is a bit worrying because not everyone that is accused is guitly - it looks almost certain that this man was guilty - but imagine other circumstances where the wrong person has a sock shoved down his throat....

and it could happen to lots of foreign men in thailand..... i mean innocent men could easily be accused??

amarka

February 3, 2007

hi...

i would have thought that most of this was obvious......

Thailand is going nowhere right now and the next elections...... if they are allowed to take place will be critical...Thaksin is still out there and in the shadows...... who ... will democraticaly replace him.... i wonder.....

as for for the military.. prestige is everything.. not only in thailand - and if you dont have grey hair and a suit/uniform - you need not apply.....

Thaksin has not gone... he may well return... and in my opinion it will be better for thailand if he returns.......

since he was overturned we have seen only chaos and protectionism from the " military " government... no this/no that....

let the people speak... they have been silent until now....

7 months to go....

WTO where ae you...! all the rules are being broken!

amarka

January 31, 2007

TCC Land Commercial cuts rents for top-end space
WORANUJ MANEERUNGSEE

The property rental specialist TCC Land Commercial has reduced the rents of its premium office space in response to a more uncertain economy since the New Year's Eve bomb blasts in Bangkok and Nonthaburi.

The affiliate of the TCC Group owned by liquor billionaire Charoen Sirivadhanabhakdi controls some of the most expensive office space in the capital. However, it was reducing its asking prices to 800 baht per square metre per month from earlier rates of 900 to 1,000 baht at its brand-new Athe{aac}ne{aac}e building on Wireless Road, with usable space of 40,000 square metres, according to president Chaiyapong Poosunthornsri.

Mr Chaiyapong said the building, scheduled to open mid-year, targeted foreign companies, some of which had been taking a second look at their business plans for Thailand.

Foreign business sentiment has been badly affected by the capital controls imposed last month by the Bank of Thailand and imminent amendments to the Foreign Business Act.

TCC Land Commercial has renovated another high-end office building, with 100,000 square metres, on Ratchadaphisek Road near the Thailand Cultural Center, to be completed next year. Its flagship site is Empire Tower on Sathorn Road.

Mr Chaiyapong said demand for office space in the central business district, such as the Sathorn and Silom areas, had not dropped, but property owners were just unable to raise prices.

The company also operates the Tawanna lifestyle retail complex and will open four new complexes in Bangkok by the end of this year. He said the new ones would be different from the original Bang Kapi branch, which focused on IT. But all new branches would focus on the medium-to upper market, with more high-fashion and trendy goods.

Tawanna Square, located on 32 rai in Lat Phrao near the first Tawanna, opened recently. The other three sites, in Bang Bo, Ngam Wong Wan and Chaeng Watthana, are under construction.

The four projects will cost about 800 million baht in total, excluding land. The company forecasts total revenue from the projects to reach nearly 300 million baht per year.

It also plans retail complexes under the Tawanna brand in upcountry locations such as Chiang Mai, and a 100-rai complex near the Burmese border in Mae Sai district.

Mr Chaiyapong said the firm was focusing on the medium- to upper-end retail market as there was limited competition.

''There's only a single rival, Chatuchak weekend market, and it is just one site, while we have Tawanna in many locations, like a shopper's neighbour,'' he said.

Bangkok post

hello everyone,

house ownership, business ownership....

thought this might be interesting, you may have already seen it - not sure.... ( i only received it today ) anyway any comments welcome.....

amarka

As of 22 Jan 07

The Foreign Business Act Amendment: a Brief Explanation Introduction The Ministry of Commerce (MOC) submitted a draft bill to amend the Foreign Business Act 1999 (FBA) to the cabinet on 9 January 2007. It was approved in principle by the cabinet and are forwarded to the Council of State for legal clearance. After it is approved by the Council of State, the draft (with changes, if necessary) will be resubmitted to the cabinet again before being sent to the National Legislative Assembly for consideration. Once approved by the NLA and published in the Government Gazette, the amendment will become effective. IMPORTANT NOTE: This fact sheet explains features that appear in the draft bill that was submitted by the Ministry of Commerce to the cabinet and approved on 9 January 2007 only. Subsequent changes of the draft bill by the Council of State and the NLA, if any, will be addressed later. Explanation outline 1. Reasons for amendments 2. Current law 3. Detail of amendments 4. Scope of application 1. Why the amendment? 1.1 MOC has been receiving complaints and requests to investigate cases on violation of the Foreign Business Act (FBA) on 2 issues: o Abusing voting rights 1 o Using “nominee” – a person holding shares on behalf of someone else – to enable foreigners to do businesses which are restricted under the FBA without permission. A nominee is not a genuine investor but is a person that simply allows foreigners to use its name to hold shares in a company and who will act in accordance with the foreigners’ instruction. 1.2 At the moment, there are 12 pending cases. 1.3 Because of these complaints, the MOC believed an amendment of the FBA is necessary to achieve the following objectives:-

1 A company can specify in bylaw or its voting agreement conditions on voting rights of preferred shares and ordinary shares. In many cases, such differential voting rights enable foreign shareholders that have preferred shares of less than 50% to have voting power more than 50%. As such, that company appears to have foreigners holding its share less than 50% (ie., remains a Thai company in accordance with definition of Foreigners in the FBA) but in fact, foreign shareholders have control over the company through the higher voting power than Thai shareholders. Although such differential shareholding arrangements are not against commercial laws in Thailand, it should not be used as a means to let foreigners to engage in businesses that are restricted under the FBA without permission (ie., should not be used to circumvent the FBA). The proposed amendment will address this issue by requiring that if a company has its foreign shareholders holding shares less than 50% but have combined voting rights more than 50%, it will now be considered a foreign company and thus must get permission from the Ministry of Commerce.

As of 22 Jan 07 2

o To promote good governance – The amendment will forbid the abuse of preferential voting rights for and by foreign shareholders in prohibited businesses and thereby closing an important legal loophole in the FBA o To strengthen compliance – It will impose heavier fine on nominee shareholding in restricted business which is against the law (Section 36) o To provide flexibility – It will allow grace period and “grandfathering” clause for compliance to avoid business disruption o To clarify what constitutes a foreign business o To strengthen enforcement and oversight capacity o To increase transparency and good governance in foreign business regime; 1.4 Three key amendments: o Definition of “foreigners” o Punishments o List of businesses under the FBA 2. The current law 2.1 “Foreigners” are defined as 1) A natural person not of Thai nationality 2) A juridical person not registered in Thailand 3) A juridical person registered in Thailand which has 1) or 2) having 50% shares or more 4) A juridical person registered in Thailand which has 1) or 2) or 3) having 50% shares or more 5) A limited partnership or a registered ordinary partnership with foreign managing partners or managers 2.2 “Nominee and punishments”: shareholding through nominee to enable foreigners to engage in restricted businesses is against the FBA (Section 36) Punishments ■ Imprisonment : 3 years ■ Fine : 100,000 – 1 million baht 2.3 “List of restricted businesses” includes List 1 – foreigners not permitted to have majority ownership for special reasons List 2 – businesses related to national safety, security, culture, natural resources and environment. Foreigners can have majority ownership (maximum of 75%) if granted permission from the Minister of Commerce with cabinet approval. List 3 – businesses in which Thais are not ready to compete. Foreigners can have 100% ownership if granted licenses by the Department of Business Development.

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3. Details of the proposed amendments Current law Proposed amendments Definition of “Foreigners” juridical persons with ≥50% foreign equity shareholding are considered “Foreigner” voting right will be included as another determining criterion: 'Juridical person with foreigners holding majority voting right ( ≥50%) will now be regarded as a foreign business' Punishments Imprisonment: 3 years Fine: 100,000 – 1 million baht Imprisonment: remain unchanged Fine: increases 5 times (to 500,000 – 5 million baht) Lists of restricted businesses List 1 – foreigners not permitted to have majority ownership for special reasons e.g. Newspaper business, radio broadcasting, television station business, rice farming, animal farming, etc. List 2 – businesses related to national safety, security, culture, natural resources and environment e.g. Production/selling/repairing and maintenance of firearms, ammunition, gun powder, explosives, domestic land, waterway or air transportation, trading of antiques or art objects being Thai arts and handicraft, production of carved wood, manufacturing sugar from sugarcane, etc. List 3 – businesses which Thais are not ready to compete e.g. Rice milling and flour production, fishery, forestry from forestation, accounting service, legal service, other services etc. List 1 and 2 remain unchanged List 3 – Businesses that are under jurisdiction of other authorities will be taken out: o Tour operating business o Futures trading and related businesses o Securities, derivatives and related businesses o Finance, banking and credit foncier o Retailing/wholesale trade: all foreign retailing / wholesaling companies will have to get permission Adjustment period Existing businesses with foreigners’ voting right ≥ 50%: ● List 3 – must report to MOC within 1 year to get a certificate to continue operating the business (“grandfathered”); ● Lists 1 and 2 – must report to MOC within 1 year; will be given 2 years to reduce foreigners’ voting right to below 50% after which they could continue their business operation. Otherwise,

As of 22 Jan 07 4

Current law Proposed amendments

List 2 businesses that want to continue operation as foreign companies (i.e., with foreign voting rights ≥ 50%) can apply for licenses after such 2 years. List 1 businesses cannot apply to have foreign voting rights ≥ 50% and will have to cease their business operation after such 2 years. Existing businesses where foreigners, through nominees, hold ≥ 50% of total shares: ● Lists 1, 2 and 3 – Must report to MOC within 90 days Will have 1 year to comply with the law No grandfathering 4. Scope of Application The amendments will not affect: ● existing foreign companies in manufacturing industries and export business ● businesses not listed under or exempted from the Act ● BOI-promoted businesses Ministry of Commerce 22 January 2007

As of 22 Jan 07

The Foreign Business Act Amendment: Q&A The Ministry of Commerce submitted a draft bill to amend the Foreign Business Act 1999 (FBA) to the cabinet on 9 January 2007. It was approved in principle by the cabinet and are forwarded to the Council of State for legal clearance. After it is approved by the Council of State, the draft (with changes, if necessary) will be resubmitted to the cabinet again before being sent to the National Legislative Assembly for consideration. Once approved by the NLA and published in the Government Gazette, the amendment will become effective. IMPORTANT NOTE: This fact sheet explains features that appear in the draft bill that was submitted by the Ministry of Commerce to the cabinet and approved on 9 January 2007 only. Subsequent changes of the draft bill by the Council of State and the NLA will be addressed later. What is the Foreign Business Act? The Foreign Business Act (FBA) is the main law that regulates scope of foreign business activities in Thailand. It does that through a simple 3-step procedure: 1. Defining who “foreigners” are 2. Listing categories of businesses that foreigners cannot do without permission 3. Setting out procedures for foreigners to obtain such permission In addition to the procedure, the FBA also contains provisions: • Establishing authorities that are empowered to grant permission • Setting level of punishment for violation of the law Why is it necessary to enact the FBA? Although enacted in 1999, the FBA is not a new law. Its predecessor was called “Alien Business Law” (ABL) or better known in Thailand as “Por Wor 281”. The ABL was promulgated in 1972 in order to limit foreign participation in some business activities either because they were sensitive sectors for Thailand (on security, natural resource, culture, etc. ground) or because the Thai people were not competitive in those sectors. The ABL was revised twice in 1978 and 1992 to make it gradually more liberal. But in 1999 a major revision was called for and the parliament passed the current law which is now called the Foreign Business Act 1999. The rationales behind the enactment of the FBA were • to make foreign business regime more liberalised in line with Thailand’s need for investment and capital inflows; • to reclassify businesses that should be reserved for Thais so as to make the lists better suited for Thailand’s competitiveness; • to implement international agreements to which Thailand is party.

As of 22 Jan 07 2

Scope of the FBA : Are all foreign businesses in Thailand subject to this law? No. Only businesses that appear in Lists 1, 2 and 3 are subject to the FBA. Most manufacturing activities are not covered by the FBA. Automobile production activity, for example, is not subject to the FBA which means foreigners can have 100% ownership once they register the company and obtain tax payment ID. In addition, businesses that receive certificate from the Board of Investment’s promotion scheme will be exempted from the FBA. Who are considered “foreigners” according to the FBA? The current FBA defines foreigners as: 1. A natural person not of Thai nationality 2. A juridical person not registered in Thailand 3. A juridical person registered in Thailand which has 1. or 2. having 50% shares or more 4. A juridical person registered in Thailand which has 1. or 2. or 3. having 50% shares or more 5. A limited partnership or a registered ordinary partnership with foreign managing partner or manager Following this definition, as a general rule, foreigners or foreign companies can own shares in any company doing any business in Thailand up to 49.99%. Of course, they can own more than that if they engage in businesses not listed in the FBA. But foreigners may be allowed to own shares of less than 49.99% in some sectors that are governed by specific laws. Some of these laws set limit on foreign ownership of shares to be lower than 49.99%, such as banking and insurance laws. Therefore, foreigners must check what kind of businesses they want to do and what law will they be subject to. Are foreigners not allowed to do businesses listed under the FBA at all? No. Foreigners can engage in most of the businesses listed under the FBA. Only the 9 businesses in List 1 are completely prohibited to foreigners. The FBA contains 3 Lists. Foreigners are permitted to engage in businesses provided for under these Lists to a different extent. While they are not allowed to apply for license to engage in businesses under List 1, they can apply for license to engage in businesses and have majority ownership in List 2 or List 3 businesses. Although they cannot have majority ownership in List 1 businesses, they can own up to 49.99% of shares (in accordance with the definition of “foreigners” explained above).

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Table 1: Lists annexed to the FBA How many businesses in the List?How much shares can foreigners own? Who can approve for license to permit foreign majority shareholding? List 1: Businesses that are reserved for special reasons 9 49.99% Foreigners cannot have majority ownership. List 2: Businesses that are reserved due to national safety, security, culture, natural resources and environmental grounds 16 60% or 75% maximum Minister of Commerce with cabinet approval List 3: Businesses in which Thais are not ready to compete 21 100% Director-General of the Department of Business Development with approval from the Foreign Business Committee Why does the FBA have to be amended? • Address legal loopholes Like many laws, the FBA is not without loopholes. There have been 2 major ways to circumvent the FBA – using voting rights and having nominees. Through these arrangements, foreigners can engage in businesses which are regulated in the FBA without applying for a license. - Voting rights – In this case, foreigners hold preferred shares that give them voting rights over Thais so even if they own only 49.99% share, they may have effective control of the company. Generally, holding preferred shares is allowed under commercial laws in Thailand. But it should not be used in such a way that would enable foreigners to engage in businesses which are restricted under the FBA. In such case, holding preferred shares has become a means for foreigners to circumvent the FBA; - Shareholding by nominees – In this case, foreigners arrange to engage Thais to act as their “nominee” shareholders who would act in accordance with the foreign shareholders’ instructions. Nominee shareholder is not a genuine investor and nominee shareholding in restricted businesses is already an offense under the FBA (Section 36) • Revise the Lists In addition to addressing these loopholes, there is a need to revise the attached Lists of businesses to make them more in line with the current level of Thailand’s economic development and legal setting.

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• Increase transparency and good governance By closing loophole and imposing heavier punishment terms, the government believes that it will promote transparency in the system and strengthen good governance in doing business in Thailand. Who was involved in the proposed amendments? Were there any representatives from the private sector – both Thai and Foreign? On 26 October 2006, the Minister of Commerce appointed a 10-member Committee tasked with studying and proposing any amendments to the FBA that it considered necessary and appropriate for the present economic environment in Thailand. The Committee was chaired by Mr. Pramon Suthiwongse of the Thai Chamber of Commerce and comprised of representatives from the Thai private sector key associations (Thai Chamber of Commerce, Federation of Thai Industries, Thai Bankers’ Association), a representative of the Foreign Chambers, the Board of Investment, several academics with the Department of Business Development as its secretariat. The Committee held 8 intensive meetings and completed its deliberation within the 60 days period given to it. Mr. Pramon made recommendations on behalf of the Committee to the Ministry on 26 December 2006 which then formed the basis upon which the Ministry prepared draft language of the amendments. On 28 December 2006, the first draft was tabled for consideration at the Economic Ministers’ Meeting. Several comments were made which the Ministry of Commerce then incorporated into the second draft which was submitted to the full cabinet meeting on 9 January 2007 and received approval, in principle. The draft is now under consideration by the Council of State. What are the amendments? The amendments focused on 3 key elements: definition of “foreigner”; modification of punishment; and revision of the Lists of businesses covered by the FBA. Table 2: Summary of the amendments Current law Amendment 1. Definition of foreigners Define 5 types of foreigner (details above) Add “voting right” as criterion on determining whether a juridical person registered in Thailand is a foreign company or not So now if a juridical person has foreigners having voting rights of 50% or more, it will be considered

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as a foreign company, even if it has less than 50% foreign equity participation. 2. Punishment Imprisonment: 3 years Fine: 100,000 – 1 million baht for violation (10,000 – 50,000 baht daily for non-compliance with court ruling) Imprisonment: no change Fine: 500,000 – 5 million baht (50,000 – 250,000 baht daily for non-compliance) 3. Lists 3 Lists Lists 1 and 2: no change List 3: (1) exclude the following: tour operating business; futures trading and related businesses; securities, derivatives and related businesses; banking, finance, credit foncier and related businesses (2) remove minimum capital level for retailing and wholesale trade that needs permission – meaning all businesses of retailing and wholesale trade will have to get permission from now on What will happen to a company that was previously Thai (foreigners holding 49.99% shares) but will become a foreign company due to the fact that such foreigners have 50% or more voting rights? Will it be considered as violating the new law or will it be given time to comply? The government understands that such company was not in violation of the current FBA so it will be given time to comply with the new law. All such company will be required to report to the Department of Business Development in order to obtain a Certificate to continue operation of the business. However, the length of operation will differ between businesses in Lists 1, 2 and 3. Table 3 : Adjustment period for companies that have become foreigners due to the “voting rights” criterion Business Period of time to notify Length of operation Lists 1 & 2 1 year 2 years; after that, such company will have to become a “Thai” company i.e., must have less than 50% of foreign shareholdings and voting rights List 3 1 year Until the company is dissolved

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What will happen to a company that have nominee shareholding on behalf of foreigners at 50% or more? Will it be given time to comply? A company that has nominee shareholding is already in violation of the current FBA. However, to avoid major disruption in the economy, the government will allow time for them to comply with the law. But companies which are under legal proceedings at the stage of investigation or trial pursuant to the provisions of the current FBA, will have their cases continued. Table 4: Adjustment period for nominee Business Period of Time to notify Length of time to comply Lists 1, 2, and 3 90 days 1 year to comply. If circumvention of the law was due to both voting rights and nominee, why are the changes on definition of ‘foreigner’ only relate to voting rights? Why there was no change on nominee? There is no need to change the definition to address nominee issue because it is already deemed illegal under the current FBA. As such, it was not necessary to elaborate further on what might constitute a nominee. With regards to nominees, the proposed amendments are the increase in punishment through fine, the 90-day period allowed for notification and the 1-year adjustment period. What the government will do is to step up its enforcement efforts to investigate any company that might be using nominee shareholding and did not report to the Ministry of Commerce. One year after the amendment comes into force, such non-reporting company will be punished in accordance with the provisions of the amendment Act. Is the amendment in violation of Thailand’s international obligations? The proposed amendments do not violate any of Thailand’s international obligations, including those under the WTO. This is self-evident with regards to the amendment of the punishment terms and the attached Lists. The amendment to introduce voting rights as criterion for determining the nationality of a company is consistent with Thailand’s obligations under the WTO Agreement and other treaties to which Thailand is party. As far as the WTO is concerned, the definition of ‘foreign service supplier’ is part of domestic regulation, an area in which Members have flexibility. Moreover, the definition as amended is more in keeping with the definition of ‘juridical person’ under Article XXVIII of the GATS. As it has always been the case, Thailand will continue to observe its international obligations, including those under the WTO Agreement and FTAs to which Thailand is party. Companies already established in Thailand that are deemed

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under the new definition to be a ‘foreigner’1 will be allowed, in accordance with formalities to be published, to operate in Thailand in sectors in which Thailand has commitments for an indefinite period for sectors under List Three, and for two years for sectors under Lists One and Two. The Royal Thai Government welcomes any interested governments to make enquiries and representations at the Department of Trade Negotiations on matters relating to Thailand’s international commitments. What plan does the government have to liberalise services and investment under the FBA in the future? The Government plans to progressively liberalise services and investment currently restricted under the FBA through an annual review of the Lists. Such annual review is mandated by Section 26 of the current FBA. The Ministry of Commerce invites any associations, academic institutes or companies to submit propositions with supporting data to withdraw any businesses from the Lists. Ministry of Commerce 22 January 2007 1 For example, a company established in Thailand in which 49% or less of capital shares is held by a national of a WTO Member, but in which such national has control of the voting rights, is deemed to be a ‘Thai’ company under the current definition of the FBA. Under the new definition, this company will be deemed to be a ‘foreigner’, i.e. a company of the WTO Member concerned.

MARKETING DIVISION

THE BOARD OF INVESTMENT

MINISTRY OF INDUSTRY

THAILAND

555 Vipavadee Rangsit Road, Jatuchuck 10900 Tel. 0-2537- 8111, 0-2537- 8155 Fax : 0-2537-8177

Pressemitteilung

(Inoffizielle Übersetzung)

Nr. 6/2550 (Or. 3), 16. Januar 2007

Die Förderungsmaßnahmen sind nicht

vom neulich geänderten Alien Business Act betroffen.

Das Thailand Board of Investment (BOI) betont, dass geförderte Projekte nicht von Änderungen im Alien

Business Act betroffen sind.

Satit Chanjavanakul, Generalsekretär des BOI, erklärte, dass die am 09.01.2007 vom Kabinett

verabschiedeten Änderungen im Alien Business Act vom Jahr 1999, die die Anteilsstruktur für

ausländische Unternehmen neu regeln, die Förderungsmaßnahmen des Thailand Board of Investment

nicht beeinträchtigen.

Gemäß des Investment Promotion Act ist es bei förderungswürdigen Projekten ausländischen Investoren

gestattet, einen bis zu 100-prozentigen Mehrheitsanteil zu besitzen. Für Projekte, die bereits gefördert

sind und für zukünftige Projekte, die Investitionsförderung begehren, haben die Änderungen im Alien

Business Act keine Auswirkungen. Ausgenommen sind bisher schon unternehmerische Aktivitäten auf

der Liste 1, bei denen ein thailändischer Anteil von mindestens 51% vorgeschrieben wird, und

unternehmerische Aktivitäten in Bereichen, die gesetzlichem Sonderschutz unterliegen. Zu nennen sind

z.B. Telekommunikation sowie Transport auf Wasser-, Land- und Luftweg.

Das Thailand Board of Investment fördert Aktivitäten in sieben verschiedenen Aktivitätsgruppen, die von

der Produktionsindustrie bis hin zur Dienstleistungsindustrie mehr als 273 Geschäftszweige umfassen.

Die Förderung ist nicht nur thailändischen Investoren vorbehalten, sondern auch für ausländische

Unternehmen offen.

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January 30, 2007