Foreign Investors Anxious Of Revision To Investment Rules

[loong]

Two questions:

How does this affect the big guys like Tesco Lotus and Carrefour? Although they use companies (like Lotus) as 'partners' to comply with current law, would Tesco be happy with lossing the voting share - I think not.

How does this affect, if at all, the so called 'special relationship' trade - eg Coke etc?

Just wondering.

If the worst happened, I imagine that the larger players would have to list shares equal to 51% on the Thai stock exchange, power would still stay in the hands of the board of directors. This obviously would only relate to their operations in Thailand. Manufacturing for export companies would restructure to comply with any new law. They will always find a way to cope.

The main concern for the Thai people is that any measures that dent confidence will reduce future foreign investment in Thailand.

The majority of Thais do not pay tax, foreign companies and their employees do.

What nobody here has mentioned; When a foreign owned company transfers it's profits out side of Thailand, it helps to weaken the Baht, thereby helping Thailand to remain competitive.

I hope that Thailand doesn't shoot itself in the foot again!

You would be correct if the baht became weaker in relation to "all currencies". Most of us tend to look at the weakness or strength of the baht compared to any one of a number of western currencies on this board. But the baht is also moving against other regional currencies. So just because the baht weakens compared to a western currency does not make Thailand more competitive. "It makes Thailand more competivie with western countries".

The baht has remained strong compared to regional currencies and simultaneously Thailand has a slower growth rate than many of its neighbors. This is not a formula to strive for. They have some things to fix and the sooner the better.

As far as I know, Thailand's main export market is the west, so it is most important that the Baht weakens against western currencies.

If the Baht weakens against the dollar while other Asian currencies strengthen or remain static, Thailand gains a competitive edge.

If Baht weakens against $, other Asian currency/$ static = Baht weakens against other Asian currency!

[pap]

ahh, so how do you think it would effect Thailand as a country?

Thailand will remain to be #1 rice exporter for quite a while.

Seriously, I don't know and I don't care. I'm not a macroeconomist. I do care about my company. Next border run i'll be spending in KL to see what the posobilties are over there. You know, eggs and baskets ? I can't imagine others *not* taking similar measures.

actually vietnam how holds that crown, and there are many others that they will more than likely take away from Thailand..........

if you do business in any foreign country, things can happen and laws can change at the drop of a hat.

i would not panic just yet, as this discussion is second guessing and nothing has happenned .

its all assumpsion at this point.

i would be very surprised if the government dose anything to jeopardize and alienate the present business community operating in los.

we all know how much the government and thais in general worship money and i doubt that there aim will be to scare business away.

hope im right.

Your assumption may be based on a false premise. You are assuming they "know" that their actions will scare away business. Governments do stupid things on a regular basis.

"i would be very surprised if the government dose anything to jeopardize and alienate the present business community operating in los."

You mean like a coup?

Or like manipulating the Baht?

I could go on but my point is they are already doing things that alienate businesses.

yes ok,

i get your point but coups come and go in thailand, always have done and always will.

the baht also will always fluctuate as that is the nature of currency even if it is manipulated.

investors already know about these things "or should do" and it is the nature of the beast when investing in thailand.

my point being,

a deliberate change of law which will seriously affect business is not in the governments best interest and i doubt whether they would be silly enough to do that.

external factors like coups and currency fluctuation dont enter into it as they are out of ones control.

as an investor one can only go on the laws of the day, study the business history of that country and make an informed decision whether he chooses to paticipate.

Points taken. I see governments do stupid things on a regular basis though. I do agree they would not do something on purpose to shoot themselves in the foot but I honestly believe their feet are so big at this point that it will be hard to miss.

[pedro01]

This is interesting.

I just applied for an Alien business license here last year. I didn't strictly qualify for one but BOI got me one as I qualified for certain BOI privileges. The only reason I applied is so that my staff can qualify for L1 visas making travel to our LA HQ easier for them, particularly on long-term assignments.

We know these changes will impact the people buying houses under a nominee company. I wonder really how much it will affect people like Toyota, Fujitsu, Philips etc... These are multi-billion dollar companies - are they really running their factories under a company with 51% nominee shareholders ? Or do they get an Alien Business license ? Don't these guys get concessions from BOI or even directly off the Thai govt ?

Will it really affect someone with millions of dollars to invest in a factory here ?

My company is pretty small - only 33 employees, so I'm not in that league - I'd be interested to hear from someone that is.

Cheers

Pedro

[pap]

Two questions:

How does this affect the big guys like Tesco Lotus and Carrefour? Although they use companies (like Lotus) as 'partners' to comply with current law, would Tesco be happy with lossing the voting share - I think not.

How does this affect, if at all, the so called 'special relationship' trade - eg Coke etc?

Just wondering.

If the worst happened, I imagine that the larger players would have to list shares equal to 51% on the Thai stock exchange, power would still stay in the hands of the board of directors. This obviously would only relate to their operations in Thailand. Manufacturing for export companies would restructure to comply with any new law. They will always find a way to cope.

The main concern for the Thai people is that any measures that dent confidence will reduce future foreign investment in Thailand.

The majority of Thais do not pay tax, foreign companies and their employees do.

What nobody here has mentioned; When a foreign owned company transfers it's profits out side of Thailand, it helps to weaken the Baht, thereby helping Thailand to remain competitive.

I hope that Thailand doesn't shoot itself in the foot again!

You would be correct if the baht became weaker in relation to "all currencies". Most of us tend to look at the weakness or strength of the baht compared to any one of a number of western currencies on this board. But the baht is also moving against other regional currencies. So just because the baht weakens compared to a western currency does not make Thailand more competitive. "It makes Thailand more competivie with western countries".

The baht has remained strong compared to regional currencies and simultaneously Thailand has a slower growth rate than many of its neighbors. This is not a formula to strive for. They have some things to fix and the sooner the better.

As far as I know, Thailand's main export market is the west, so it is most important that the Baht weakens against western currencies.

If the Baht weakens against the dollar while other Asian currencies strengthen or remain static, Thailand gains a competitive edge.

If Baht weakens against $, other Asian currency/$ static = Baht weakens against other Asian currency!

The baht does not have to fall against western currencies although it can and uphold your case. It only needs to be more competive than its neighbors. It is a three way relationship.

You are correct in the scenario you use. You have to have the other regional currency or currencies to make the determination. The baht must remain at par with the regional currencies more than fall compared to the dollar since these regional countries compete along similar lines of product.

Your quote now ties the multiple tracking points together. Since you have multiple variables the bahts relationship to these multiple variables matters. Not just its relativity to the western currency.

[wolfmanjack]

Agree, but understand that only a few of the 14,000 are 'major players'. Don't be surprised if the majority of foreigner-employed thais or employed by the little guys.

Agreed... I really don't think that the present government or the military understands the trickle down effect. Surprising because the first thing anyone learns in the military is that "Sh*t rolls downhill". Most governments, not just Thailand, underestimate the overall effect of small businesses on a country and seem to concentrate on the ones making millions in profits. If you employ 4 Thais, even if they are your relatives and even if they don't do much, you are putting money into the economy that goes outward in a lot of directions. Cut off the head and the body dies, same in business and if the government keeps stabbing foreign business and investment, those businesses will find a way to stop the bleeding probably by moving elsewhere.

I would like to see stats on the percentage of tax revenue is generated by "Foreign" companies ? Most of the thai owned companies that I know do not pay taxes and if they do it is minimal. The hardware store down the road from me probably takes in 20 million or more per year and you can not get a VAT receipt from them. The receipt you can get is written on a white piece of paper from a note pad. If you ask for a proper receipt it is on a receipt pad from the local grocery store with no name on the top. The revenue department disallows these receipts when I pay taxes so I pay more. Also as soon as I reached 1.2 million in sales the revenue department insisted I join the VAT system. Also my 20 workers are all on the Social Insurance program. Many of the thai companies pay less than minimum wage and do not pay into the social insurance program.

[OlRedEyes]

The Americans came, they got European markets and we got jobs. Then as time progressed we got knowledge, and then wealth, and now we have our own companies with which to invest abroad. You know, it's not about money, it's about knowledge. Knowledge is far more valuable than money will ever be.

Bang, nail on head.

This unfortunately is the point Thailand seems to have missed completely in decades of growth. Instead grabbing as much money as possible *now* became the focus. Very stupid.

Edited January 9, 2007 by OlRedEyes

[cclub75]

My question is even if Cabinet decides this morning not to implement these changes right

now bearing in mind all the other recent disruptive events in Thailand , what is to stop them

from reintroducing this later on - may be next year or the year after?

You are absolutly right. This is why the "suggestion" of foreign Commerce chambers to "postpone" for 6 months the announcement is... well... a thai way to deal with a global matter.

It solves nothing. Especially "permanent anxiety" as you wrote. Just a way to buy time.

What we need is a clear signal from the government : scrap the crap.

But of couse, it won't happen.

See the comments of the Commerce minister : " But Commerce Minister Krirk-krai Jirapaet said that while foreign chambers and envoys had the right to object, the legal reforms would move forward.

He said the ministry would forward the draft changes to the cabinet today, but that details would remain confidential. "

http://www.bangkokpost.com/Business/09Jan2007_biz35.php

It's the FXXX you attitude (i love the part on "details would remain confidential" ! another lunatic minister).

Let's see if really they will have the balls to make the amendement....

[Phil Conners]

Property gone up 100% in the last 4 years? You must be dreaming. It may have happened on select property but on average I see prices now being about the same as 4 years ago, certainly not more.

There are a lot of better quality constructions going on now and selling at a higher price, but compare apples with apples.

Or do you mean land value?

God you must live in the out back in Phuket here the sky was the limit !

Pattaya, as it says just here

<----------

[OlRedEyes]

You are absolutly right. This is why the "suggestion" of foreign Commerce chambers to "postpone" for 6 months the announcement is... well... a thai way to deal with a global matter.

It solves nothing. Especially "permanent anxiety" as you wrote. Just a way to buy time.

Thais have always loved ambiguity in their rules and laws, it allows them to steer things their way whenever they feel the need or desire. Foresight and planning was not that important as things could easily be adjusted on-the-fly.

Foreign investors have to a great degree accepted this because of the fact that some money under the table could always sort out matters. The past few months however have shown all and sundry that this is a dangerous supposition. I don't think it really matters that much anymore what is decided as far as foreign business rules are concerned. The message is out, loud and clear.

There probably won't be a sudden flight of investment capital. It'll just dry up and existing capital investments will be restructured over a period of time. It's going to take a long time of stability before any serious new investment is made here. Words, and even new laws, won't be enough to reassure anybody anymore. Long term stability, of politics, economy and rules, is required. This is not a Thai trait.

[Jaonghais]

I read recently that in order to ride the Thai 'waves' and survive in this country, one has to indeed be resilient.

I concur with this statement wholeheartedly. Whilst only having been in Thailand for a split second compared to others, it appears more than clear to me that a foreigner should be VERY careful.

I am conscious of still being in a cultural state of flux and yes I do have the option of jumping on a plane and going home. Easier said than done when one has a partner and 2 children.

The entire uncertainty that is oscillating throughout the country in so many areas cannot be good for such a grand and proud nation.

Nor do I feel it instills economic and investment certainty for those wishing to avail themselves of trade opportunities.

Personally, I will not be buying anything here, other than food and the daily requirements. I will not be bringing money into the country for investments and nor will I even look at real-estate. For the time being.

The best I feel we can do, is put one foot in front of the other and see what each day brings. Hoping of course that the entire situation ameliorates and stabilises.

Many people that post on this forum are obviously well versed in the Thai way of life and extremely informed in terms of politics, economics, power and government etc.

I would sincerely like to clarify that my comments are in no way intended to offend anyone or the institutional processes in this country.

I am just so bloody confused at the moment that my head's spinning and it makes it a challenge.

Good luck to all and thanks for letting me have my say.

Big Paulee.

Hear!!! Hear!!! Paulee. I also look to this forum for informed opinions. One foot in front off the other. And slowly at that.

[cclub75]

Breaking news.

The Finance minister this morning, before the meeting of Cabinet about amemdement of Foreign Business Act.

"Why should we withdraw it? They have not yet seen the details. If they had seen the details, I am sure that they would be happy,'' M.R. Pridiyathorn told reporters.

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

I have held talks with many investors but they have not seen all of the details and the commerce minister cannot disclose the bill before the cabinet gives its approval,'' he said.

http://www.bangkokpost.com/breaking_news/b...s.php?id=115859

[Jai Dee]

DPM Pridiyathorn to submit draft of Foreign Business Act to Cabinet meeting today

Deputy Prime Minister and Finance Minister M.R.Pridiyathorn Devakula (ปรีดิยาธร เทวกุล) said that he will submit the draft of the Foreign Business Act to the Cabinet meeting today. He expressed confidence that foreign businessmen will agree with the new draft.

The Foreign Chamber of Commerce in Thailand had earlier voiced disagreement with many details of the Foreign Business Act. M.R.Pridiyathorn said he had discussed the draft with foreign investors and will hold a meeting on January 10 to inform them about the draft in detail.

Source: Thai National News Bureau Public Relations Department - 09 January 2007

[OlRedEyes]

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

[kmart]

Breaking news.

The Finance minister this morning, before the meeting of Cabinet about amemdement of Foreign Business Act.

"Why should we withdraw it? They have not yet seen the details. If they had seen the details, I am sure that they would be happy,'' M.R. Pridiyathorn told reporters.

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

I have held talks with many investors but they have not seen all of the details and the commerce minister cannot disclose the bill before the cabinet gives its approval,'' he said.

http://www.bangkokpost.com/breaking_news/b...s.php?id=115859

Who are these "M.R." and "M.L." people in the upper echelons of Thai society, btw?

Seems that globalisation is backing Thailand into a corner to protect the status quo of its unfair and exploitative business practises. So expect more knee-jerk protectionism from the people trying desperately to cling on to the gravy train. The phrase; "This is Thailand" has never been used in any sensible business plan.

[samran]

this issue is all over the Thai news this morning. So, the statment yesterday has had an effect.

[HenryB]

To those of you who hold property by way of a Thai Majority Shareholder set up and only see the possibilty that this new law will erode your voting position you have overlooked a significant detail. These new rules only apply to legally formed corporations. When you set up you land holding company using nominee shareholders you committed not one but two crimes. In a country with a functioning legal system you would not only lose your land but also be on the hook for fines and jail time. There would be no law suits filed if the Thai Gov said "We are repatriating the land you illegally hold. If you wish to contend this action please be aware that we will enforce the fines and jail time that is clearly written in the law. Kindly leave the keys at immigration on your way out of the country."

P

I agree We have to respect Thai culture. You did the crime Now you have to do the time. The only answer is to get married and put everything in your wifes name. If not marriedput in GF name no problem The lady from Isan will look after you

[cclub75]

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

Indeed... It's a clear indication that the bill... will contain exactly what the working comittee has suggested (difficult to imagine that between the meeting of foreign commerce chambers yesterday and the meeting of cabinet they have changed totally the content).

Anyway.

Let's try to understand why.

First, what this Foreign Business Act is about ? This law sets the rules for :

-classify company as "thai" or "foreign" (old rule : % of shares)

-then, when the company is seen as "foreign" the law basically sets the framework, with 3 lists of "activities".

List 1 and list 2 are forbidden to foreign companies. List 3 is more open. It states several activities for which thais are not ready to compete. But a foreign company who would like to operate on this list could ask for a "licence" (after negociations with authorities). Can be granted or not. With total obscurity regarding criterias. Of course.

Bottom line : list 3 is a trap. It says "you can not, but maybe yes, come back to ask." And it's a double trap, because it is so vague it can include a lot of activities (especially in services business).

Point 3 of section 8 : "Foreigners shall be prohibited from operating the businesses prescribed in List Three in which Thai nationals are not ready to compete unless permitted by the Director-General with the approval of the Committee".

So to sum'up : in front of such a total bureaucratic monster and nightmare, many foreign companies that wanted to operate in Thailand have simply bypassed this law, by being "thai" (AKA 51 % of shares to "thais investors", but full control to foreign management/owners). AKA : Foreign Business Act didn't apply because companies were "thais".

No licence to ask, no kilos of papers to provide, easy, simple. Efficient.

This scheme has worked pretty well for the last 30 years. Everybody was happy.

So why change the rule now ? Because of Shin scandal ? I don't buy it.

They could have nailed Temasek on other issue (for instance the specific regulation regarding shareholding for telecom industry). Anyway.

My idea : they simply want the foreigners to endure the "path" that was initially designed in the law : ask authorities, negociate a licence on a case by case basis.

What to gain in this process ? More control, more power ("I don't like your face and your project, piss off"). And more space for corruption and little "private negociations".

Many foreign investors will not do it (discouraged). This is the main risk for the country's economy. Other will try it, but will be rebuked by some lunatic provincial civil servants for instance.

And other will try, and will succeed.

Welcome to the new thai casino, golden land of opportunities !

Bottom line : this very thai spirit (idiotic rules that lead to dead-end situation that can be solved only with specific negociations) can work for :

-little business, mafia type

-and big business

But not for medium (normal) business.

I don't see xenophobic conspiration in such a move.

Just a pleasure dome for maniacs civil servants, infants of Kafka and Don Corleone.

If you want to see by yourself :

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

That suits perfectly the way of thinking of the current government : no imagination, not an ounce of real audace, just the grey universe of a certain old generation, who is dying to know that they belong to the past. A last stance for those men and women, with insane haircuts, bad suits and very, very bad shoes...

I really start to miss Thaksin !

No, I'm joking...

Edited January 9, 2007 by cclub75

[Bruce1]

Its pretty obvious the people drafting these laws are academics whose knowledge is largely theoretical and they have no knowledge of how business really works.

They proved that with the 30% capital requirement rule - they didn't expect the sudden reaction. The same minister is now pressing this voting rights change. I doubt if he really understands what the results will be either.

Hopefully there could be someone at the top of government who understands and cares, despite the fact that soldiers are by their training enemies of the free market (North Korea, Burma etc etc etc), cause if this goes thru, on top of the 30% withholding, the coup and the bombing, then, as others have said, foreign investment will simply dry up. That's not just money either, the main issue is actually knowledge, as the previous poster said about Ireland:

The Americans came, they got European markets and we got jobs. Then as time progressed we got knowledge, and then wealth, and now we have our own companies with which to invest abroad. You know, it's not about money, it's about knowledge. Knowledge is far more valuable than money will ever be.

The Chinese and Indians are the latest examples of how this works to make countries richer.

Its the Thais, not the foreigners, who will suffer most from an investment drought. The investors will be OK, they'll just go elsewhere and operate. Its the Thais who will be without jobs and profits. The whole economy will slow WAY down.

The Thai educational system demonstrates that the knowledge to run a truly modern economy successfully simply isn't here in the ways needed. There's nothing new about this, its been proven over and over worldwide. Isolationism is a dismal failure, but running an open economy is a route to success.

Instead of reducing foreign investment, the Thais should be opening themselves up to more of it. They should scrap the lists of supposed sectors of the economy where they're "not ready for competition" (when will they ever be ready?) and let anyone prepared to operate by the rules enter the markets.

The way to control the operation of markets to ensure that national objectives are achieved is not to limit ownership. That's actually irrelevant. The real issue is how the market is regulated. The government has to ensure businesses can operate within rules which are good for Thailand, which create jobs and foster investment and make the country richer. If they can't do that, then its proof they can't operate a government properly. After all, whenever you hear about some corruption scandal its the Thai officials who have done the wrong thing. The failure is internal.

This baloney about wanting to ward off "speculators" is just nonsense. What's a "speculator"? Someone who wants to use their money to make a profit. What's wrong wth making a profit? Nothing. If investors can't make a profit, then they won't invest - simple as that. And they certainly won't hand over control to people who they think don't know what they're doing.

This whole debacle is actually very sad, very very sad for Thailand.

[bkkandrew]

Breaking news.

The Finance minister this morning, before the meeting of Cabinet about amemdement of Foreign Business Act.

"Why should we withdraw it? They have not yet seen the details. If they had seen the details, I am sure that they would be happy,'' M.R. Pridiyathorn told reporters.

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

I have held talks with many investors but they have not seen all of the details and the commerce minister cannot disclose the bill before the cabinet gives its approval,'' he said.

http://www.bangkokpost.com/breaking_news/b...s.php?id=115859

Who are these "M.R." and "M.L." people in the upper echelons of Thai society, btw?

Seems that globalisation is backing Thailand into a corner to protect the status quo of its unfair and exploitative business practises. So expect more knee-jerk protectionism from the people trying desperately to cling on to the gravy train. The phrase; "This is Thailand" has never been used in any sensible business plan.

Indeed, it is usually the turn of phrase of ferrang to explain away another Peculiar Thai situation or decision...

Think we may have been right on that one all along!!!

Edited January 9, 2007 by bkkandrew

[birago23]

Try to go through with this stupid law and expect another record landslide in the Thai stock exchange. At least the government can be sure that the Thai baht wont climb any further, it wont as the whole economy of this country would go CRASHING DOWN. I own a company with the same 51/49 % setup. If I would have to give away the power over my company to some Thai shareholders, I would first make sure that there is no more company. If all foreign companies start to pull out of Thailand, finally Thailand will have an unemployment problem and not have the lowest unemployment rate in the world.

Vietnam, Malaysia economy will boom, thats definitely the next destination to go then.

NOBODY CAN BE THAT STUPID AND MAKE A LAW LIKE THAT!

[Dupont]

Try to go through with this stupid law and expect another record landslide in the Thai stock exchange. At least the government can be sure that the Thai baht wont climb any further, it wont as the whole economy of this country would go CRASHING DOWN. I own a company with the same 51/49 % setup. If I would have to give away the power over my company to some Thai shareholders, I would first make sure that there is no more company. If all foreign companies start to pull out of Thailand, finally Thailand will have an unemployment problem and not have the lowest unemployment rate in the world.

Vietnam, Malaysia economy will boom, thats definitely the next destination to go then.

NOBODY CAN BE THAT STUPID AND MAKE A LAW LIKE THAT!

All togeher now

"oh yes they can!"

[gjones]

Section 16. Foreigners applying for a license shall have the following qualification and shall not have the prohibited characteristics below:

(1) Being not younger than 20 years old.

(2) Having residency or being permitted to temporarily enter into Thailand under the immigration law.

(3) Being neither incompetent nor quasi-incompetent.

(4) Not being a bankrupt.

Section 16 para (3) of Foreign Business Act B.E. 2542 (1999) - Shame the rule does not apply to the Govenment

[Dupont]

http://www.ft.com/cms/s/5f1eee3c-9f17-11db...00779e2340.html

Main item on the Financial Times as well.

“They haven’t seen the details yet and so how do they know what is the impact,” he retorted to Thai journalists, shortly after the Joint Foreign Chambers of Commerce of Thailand -- backed by diplomats from Western and Asian countries -- held a rare press conference to express its mounting distress.

Think this just got a lot bigger than they expected. Raging apparantly from what I saw on Thai TV.

Set coming down again as well.

Edited January 9, 2007 by Dupont

[bkkandrew]

Section 16. Foreigners applying for a license shall have the following qualification and shall not have the prohibited characteristics below:

(1) Being not younger than 20 years old.

(2) Having residency or being permitted to temporarily enter into Thailand under the immigration law.

(3) Being neither incompetent nor quasi-incompetent.

(4) Not being a bankrupt.

Section 16 para (3) of Foreign Business Act B.E. 2542 (1999) - Shame the rule does not apply to the Govenment

Wish rule (3) could also be applied to Thais wanting to run businesses...

Edited January 9, 2007 by bkkandrew

[Dupont]

Section 16. Foreigners applying for a license shall have the following qualification and shall not have the prohibited characteristics below:

(1) Being not younger than 20 years old.

(2) Having residency or being permitted to temporarily enter into Thailand under the immigration law.

(3) Being neither incompetent nor quasi-incompetent.

(4) Not being a bankrupt.

Section 16 para (3) of Foreign Business Act B.E. 2542 (1999) - Shame the rule does not apply to the Govenment

Wish rule (3) could also be applied to Thais wanting to run businesses...

I've forgiven you that muppet call you made already

[bkkandrew]

Section 16. Foreigners applying for a license shall have the following qualification and shall not have the prohibited characteristics below:

(1) Being not younger than 20 years old.

(2) Having residency or being permitted to temporarily enter into Thailand under the immigration law.

(3) Being neither incompetent nor quasi-incompetent.

(4) Not being a bankrupt.

Section 16 para (3) of Foreign Business Act B.E. 2542 (1999) - Shame the rule does not apply to the Govenment

Wish rule (3) could also be applied to Thais wanting to run businesses...

I've forgiven you that muppet call you made already

I actually rather like the Muppet Show..

[cutter007]

"Why should we postpone it when we have worked on it for three months. This is Thailand,'' he added.

My idea : they simply want the foreigners to endure the "path" that was initially designed in the law : ask authorities, negociate a licence on a case by case basis.

What to gain in this process ? More control, more power ("I don't like your face and your project, piss off"). And more space for corruption and little "private negociations".

Many foreign investors will not do it (discouraged). This is the main risk for the country's economy. Other will try it, but will be rebuked by some lunatic provincial civil servants for instance.

And other will try, and will succeed.

Welcome to the new thai casino, golden land of opportunities !

Bottom line : this very thai spirit (idiotic rules that lead to dead-end situation that can be solved only with specific negociations) can work for :

-little business, mafia type

-and big business

But not for medium (normal) business.

I don't see xenophobic conspiration in such a move.

Just a pleasure dome for maniacs civil servants, infants of Kafka and Don Corleone.

If you want to see by yourself :

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

That suits perfectly the way of thinking of the current government : no imagination, not an ounce of real audace, just the grey universe of a certain old generation, who is dying to know that they belong to the past. A last stance for those men and women, with insane haircuts, bad suits and very, very bad shoes...

I really start to miss Thaksin !

No, I'm joking...

Excellent analysis, although I don't really think they are trying to acheive the results you are talking about,

this civil servant "super corrupt" negotiation system is what the results will be.

I don't really understand anyways what this has to do with the big foreign multinationals anyways. Most are

100% foreign owned anyways and are under BOI status.

So I don't think this even effects them.

This would effect the middle and small companies.

Thailand should get some advise from Indonesia, they can't even keep the lights on for their citizens.

Foreign capital and expertise pulled out of the energy sector over there and now they can't build enough power stations,

for there current needs.

Foreigners pulled out because the Indos were pulling crap like Thailand is trying to do right now.

I always joke with my Thai friends, be careful about Americans and business, its a deals a deal mentality.

Which means don't double cross Amercan's when it comes to business, because you

may be able to steal a dollar from their pockets today, but they won't forget it, and they will use economic strength, uncompromising determination, and scientific expertise to beat you silly dumb for the next 50 years, until you are begging to pay back the dollar with interest.

Start a war with us fine, sell weapons to our enemies, no problem, but try to screw us over in business, big mistake.

[bkkandrew]

Still no news yet, but the signs don't look good. The Nation reports:

Finance Ministry to press ahead with foreign business laws

Finance Ministry has vowed to press ahead with legal change that could overhaul the way foreign companies do business here despite warnings of potentially disastrous economic fallout.

(My bold)

Unfortunately the link for the full story then error reports:

Warning: mysql_connect(): Too many connections in /backup/content2/nationmultimedia/libs/classes/db/Db.Class.php on line 42

Too many connections

I guess that foreign investors of all sizes are really interested in this. Watch for market mahem???

Edited January 9, 2007 by bkkandrew

[loong]

finally Thailand will have an unemployment problem and not have the lowest unemployment rate in the world.

As an aside, where did this quote come from. ? What is the claimed unemployment rate.? Whatever it is it cannot be based on anything substantial. I cannot believe that there is any record anywhere that can actually pinpoint how many people are employed.

[Mid]

finally Thailand will have an unemployment problem and not have the lowest unemployment rate in the world.

As an aside, where did this quote come from. ? What is the claimed unemployment rate.? Whatever it is it cannot be based on anything substantial. I cannot believe that there is any record anywhere that can actually pinpoint how many people are employed.

maybe a search of unemployment rate here on Thai Visa will reward with results ..............