Thailand To Limit Foreign Stake In Firms To 50 Per Cent

[Muppetbkk]

Seems like it is just a way of getting at Temasak... Pretty obvious really.

Also says that Retail and Banking will not be effected. Does retailing include Bars and restaurants?

==============================================================

Thailand revises business rules

By Kate McGeown

BBC News, Bangkok

Thai soldiers patrol a railway station in Bangkok on 2 January 2007

Recent events in Thailand have made investors nervous

The Thai government has announced plans to tighten rules regulating foreign businesses - a move analysts say could damage an already shaky economy.

Changes to the Foreign Business Act would see foreign firms being prevented from controlling more than 49% of the voting rights of a Thai business.

But the changes will take two years to implement and key sectors, such as retail and banking, will be exempt.

Foreign investors are already nervous after last month's stock market crash.

'Grave concern'

The downturn was sparked by the government's sudden decision to limit the amount of money that could be withdrawn by investors - a plan it then partially rescinded in an effort to bring market levels back up again.

September's coup and the New Year's Eve bombings have also raised questions about Thailand's stability for investment.

Such a radical change of this law will lead to a further erosion of business confidence

Peter van Haren, Joint Foreign Chambers of Commerce in Thailand

The Joint Foreign Chambers of Commerce in Thailand (JFCCT) said it was "gravely concerned" about the proposed changes to foreign ownership controls.

"Such a radical change of this law will lead to a further erosion of business confidence," said its president Peter van Haren.

Thai stocks fell nearly 3% after the proposals were published.

Different regulations currently apply to different industries but while many businesses already have a 49% ceiling on foreign ownership, in practice foreigners often have overriding control, because the local subsidiary owners are merely nominees with little or no voting rights.

By tightening up laws to consider voting rights as one of the key criteria for foreign ownership, many firms may be forced to alter shareholding structures and sell shares to Thai investors to stay within the law.

Exemptions

Officials said about 15 publicly listed companies would be affected by the proposals, which have still to be approved by Parliament.

But according to the draft proposals, industries such as retail, tourism, banking and insurance - in which foreign firms have substantial interests - would not be affected as they are governed by other laws.

This would exclude firms such as Tesco and Carrefour from any impact.

Former Prime Minister Thaksin Shinawatra

Thaksin's business dealings put foreign firms under scrutiny

One analyst said that his initial impression was that the changes would not be as punitive for foreign investors as first thought.

"First indications are that the revision is somewhat less stringent than initially expected," said HSBC's Frederic Neumann.

"The amendment brings the Thai direct investment regime broadly into line with international practice."

Foreign control over Thai businesses has been highlighted by the continuing investigations into the financial dealings of former Prime Minister Thaksin Shinawatra, who was ousted in a coup in September.

Investigators are focusing on the Thaksin family's sale of its controlling stake in the telecommunications giant Shin Corp last year.

The shares were bought by the Singapore-owned investment firm Temasek - effectively selling the company abroad, albeit partly through Thai subsidiaries.

The sale fuelled allegations that Mr Thaksin had abused his power and betrayed national interests.

[farangsay]

It means that when they want something they will get it.

The Minister of Finance was quoted, "Why should we postpone it when we have worked on it for three months. This is Thailand," he added.

Can someone expound on what he means when he says that?

Actually isn't that what Thaksin the ignominious is supposed to

have said to that Canadian he screwed on the venture that went

on to be UBC ?

I think it's Thai for "screw you farang".

[Kaojai]

From MarketWatch:

NEW YORK (MarketWatch) -- Thai stocks tumbled Tuesday after the military government announced another set of restrictions on foreign investment in the country that would reduce foreign ownership in Thai companies to less than 50%.

The news unsettled investors coming just two weeks after a botched effort to impose capital controls on foreign investors sent the benchmark SET down 15% in one session and after Bangkok was rocked by a series of bombings on New Year's Eve.

The SET index closed down 2.7% at 616.75, its lowest level in two years. The index has lost 9.3% so far this year.

The Thai government said overseas investors have a year to disclose their holdings in Thai companies, and another year to reduce stakes to less than 50% based on voting rights. It further announced measures to close a loophole that allows foreign investors to own stakes in companies through local "nominees." The policy redefines "alien" to include foreigners and their Thai nominees.

The Thai currency, the baht tumbled. At last check, it was down 0.3% versus the dollar and 0.6% against the euro. The debt market rallied.

"Although these new policies do not impact portfolio investors, it is yet another step in the deterioration of the political and investment climate," said Marc Chandler, analyst at Brown Brothers Harriman.

"Needless to say, such an environment bodes ill for the Thai baht," he said.

The baht was one of the strongest currencies in the region last year, gaining 12.5% against the dollar since the end of 2005. It "is likely to be among the worst performers until the political/policy environment improves," he said, adding that he expects the dollar to retest the 36.50 area last seen in mid-December and possibly head toward the 38 level in the coming months.

The Thai central bank attempted to impose capital controls on foreign investors in its stock market two weeks ago in an effort to weaken the baht. It was forced to loosen the measures less than 24 hours after announcing them after they triggered the hemorrhage in the equity market. See full story.

The controls decision was the first major economic policy move by the military government installed in September after a bloodless military coup when the army ousted Prime Minister Thaksin while he was in New York City for the annual United Nations General Assembly meeting.

Thaksin's government had been dogged by charges of corruption and inconsistencies at the voting polls. There had been calls for the prime minister's resignation earlier this year after his family sold a $1.9 billion stake in telecom group Shin Corp., prompting many Thais to complain that the family managed to avoid paying taxes.

At UBS, Keith Neruda, said today's announcement may not be "as bad as expected" although the market's decline would appear to have interpreted it as "apocalyptic."

The analyst said the amendments will only apply to companies as defined in the country's Foreign Business Act -- including broadcasting, telecom, and air transport companies.

"Given that it was Temasek's purchase of Shin Corp. that precipitated these amendments, it is no surprise that the industries targeted are those held by Shin," he said, in a note.

"We do not expect a major exodus of foreign investors from Thailand or the end of foreign direct investment," Neruda said. "We see the market's 16% sell-off since December 15th as a buying opportunity. We prefer blue chips and yield stocks."

Wanfeng Zhou is a markets reporter in New York.

[britmaveric]

Thai Finance Minister to explain amendments to foreign investors

This is Thailand, so nought surprises me!!!

Edited January 9, 2007 by britmaveric

[dcq]

From MarketWatch:

"Although these new policies do not impact portfolio investors, it is yet another step in the deterioration of the political and investment climate," said Marc Chandler, analyst at Brown Brothers Harriman.

The SET in all likliehood will be driven to the next support cycle which should run alongside the crash of the american and european indexes. As always, this will present another opportunity to buy, but since this hasn't materialised as of yet, we should wait 3-6months before we see ourselves back at this pitiful level. Enjoy.

[Paul MBMG]

I for one would really appreciate Sunbelt's take on all of this......you guys know your stuff!

Personally, I would like to know if this means I can still set up my own Limited Company, still become a Director and be in control of my business when I move to LOS?

Any advice would be greatly appreciated from the experts

Yes, of course you can and probably with more certainty than before. The one caveat is that if you can you should wait for the details of the new arrangements to be worked out (if not, then you can register now & change the Shareholder Ag, M&A and covenants afterwards). I've actually lobbied against the changes but it's not exactly rocket science figuring how to work within them.

[Mid]

I for one would really appreciate Sunbelt's take on all of this......you guys know your stuff!

Personally, I would like to know if this means I can still set up my own Limited Company, still become a Director and be in control of my business when I move to LOS?

Any advice would be greatly appreciated from the experts

Yes, of course you can and probably with more certainty than before. The one caveat is that if you can you should wait for the details of the new arrangements to be worked out (if not, then you can register now & change the Shareholder Ag, M&A and covenants afterwards). I've actually lobbied against the changes but it's not exactly rocket science figuring how to work within them.

care to expand on this ,

50/50 is a joint partnership ,

where is the control???

[Paul MBMG]

care to expand on this ,

50/50 is a joint partnership ,

where is the control???

I think that other readers have touched on this but the sharehlders' agreement, the M&A, use of holding structures and other covenants can effectively ensure this

set it up right and you can exercise control with less than 1% of the shares

[KRNN]

I think the reason that big retailers will be excluded is in Alien Business Act 1999

In List Three: The business which Thai national are not yet ready to complete with foreigners, where foreign company can not run business in this list:

(14) Retailing all categories of goods having the total minimum capital less than 100 million Baht

or having the minimum capital of each shop less than 20 million Baht.

(15) Wholesaling all categories of goods having minimum capital of each shop less than million

Bath

In (14) and (15) here, I think Tesco by บริษัทเอก-ชัย ดีสทริบิวชั่น ซิสเทม จำกัด, its Thai partner, or whatever, has register capital of 20,550,000,050 thai baht.

So, today's moral, if you're big farang company, you'll be fine.

It's small companies like us they..(you know who) trying to get.

By the way, in the same List Three, Alien Business (aka farang-own companies) can not (19) Selling food or beverages

Errr..... what do we do now?

[Paul MBMG]

So, today's moral, if you're big farang company, you'll be fine.

It's small companies like us they..(you know who) trying to get.

Errr..... what do we do now?

Properly set-up small companies are fine

Small companies that take good advice are fine

I have an advisory on this that I can post on here if anyone still has any concerns..........

[brazil]

late 2006 and now 2007 the time of the facist right wing conservative segments of thailand gaining back their power

Edited January 9, 2007 by brazil

[sriracha john]

Not being any sort of economist, but does this latest add any more to the fire of what has previously been posted or is it just rewording...???

Nominees will be forbidden

Planned amendments give more teeth to laws that restrict business holdings; executives warn of investment backlash

Foreign companies, which have been using Thai nominees to circumvent ownership laws, will be forced to reduce their stakes and their voting rights within specified time limits when the amended Foreign Business Act becomes law.

After deliberating for almost five hours yesterday, the Cabinet approved a draft amendment to the Foreign Business Act designed to create a level playing field and transparency among foreign companies doing business in Thailand.

The amendment aims to end the legal contention over allegations that Temasek Hold-ings of Singapore had relied on nominees to get around the Thai ownership law to take over Shin Corp.

The amendments require foreign business owners to reduce their voting rights to below 50 per cent within one year.

For shareholdings, if they own a stake in their own name that exceeds the limit, they have two years to reduce it. If the exceeded limit is held in the name of a Thai nominee, they have one year to reduce it.

Commerce Minister Krirk-krai Jirapaet said the new law would set a clearer definition on foreign corporate entities.

"The law is designed to create more transparency in the system. It should improve the investment atmosphere," he told a news conference.

Under the amendments, "foreign companies" are defined as those whose shareholding stakes or voting rights exceed 50 per cent.

This law mainly affects foreign companies in the service industry. Most foreign manufacturing companies are exempt, including companies that fall under Board of Investment mandated waivers.

The Foreign Business Law covers three lists of business sectors - deemed critical to national security - subject to the degree of protection. The most protective category is Annex 1, followed by Annex 2 and Annex 3.

Industries listed in Annex 1 include rice farming, forestry, agriculture and protected professions such as hairdressing. Annex 2 comprises national security-related sectors such as telecommunications, handicrafts, media, weaponry, ammunition, military equipment, the culture-related sector, environment, transportation, marine and air transport, domestic aviation, antique sales, salt farming and mining.

Companies operating in industries listed in Annex 3 of the law will be exempt from the rule. Annex 3 includes rice milling, fisheries, forestry, accountancy services, the service business, legal service business, agriculture, engineering, and retail.

However, the retail law will soon be subject to a retail business law to be introduced in the near future.

At present, there are around 8,800 companies under Annex 1 and 2, while another 30,000 companies operate under Annex 3.

According to the draft amendments, companies, which operate under Annex 1 and 2 and which violate the foreign business law, will be required to revise their shareholding structure and voting rights below 50 per cent within a maximum of two years.

For foreign companies, which have used nominees to circumvent the ownership law, they must report their true status to the Commerce Ministry and will be given one year to comply with the law by reducing their stake to less than 50 per cent.

In total, the new law will govern almost 40,000 multinational companies operating in Thailand at the moment.

The Joint Foreign Chambers of Commerce on Monday warned the government to suspend the amendment saying members might withdraw their investments if the new law becomes more restrictive.

"Companies in List 1 and 2, which include large companies, will be affected. The net effect is something that we can't really gauge and we don't know what it is [at the moment]. However, the immediate effect is that it changes the playing rules, and that reduces the confidence of investors," said Peter Van Haren, chairman of the joint foreign chambers.

However, the new law would not affect the legal process in the Kularb Kaew case. Krirk-krai said Kularb Kaew, suspected to hold Shin Corp's shares on behalf of Temasek Holdings, would be subject to the old law.

The Commerce Ministry is still firm on its recommendation to the police that evidence leads the ministry to believe that Kularb Kaew might be a nominee for Temasek of Singapore.

Sources said Cabinet members intensely debated the merits of the law. According to the source, Interior Minister Aree Wongsearaya voiced concern that the new law might provide amnesty to Kularb Kaew. Information and Communications Technology Minister Sitthichai Pookaiyaudom also questioned the implication of the law on the Shin Corp deal.

Foreign Minister Nitya Pibulsonggram asked for Cabinet's comments on how he should explain the new law to foreigners. Eventually, Prime Minister Surayud Chulanont assigned Krirk-krai to explain the issue to avoid confusion.

Surayud also tried to ward off investors' concerns, saying the decision was right and the government would be able to explain it.

He said the changes would not take effect for "some time", as a panel of legal experts needs to review the changes and the government would try to reassure nervous investors.

"We think that it needs to be worked out in detail for the law to be more transparent, and to make investors more confident," Surayud said.

But that failed to console the stock market, which tumbled 2.69 per cent, with the Stock Exchange of Thailand (SET) composite index losing 17.07 points to close at 616.75.

Krirk-krai said he could not say when the law would be enacted as the draft would have to receive the blessing of the Council of State. He expected that it might take three to four months.

Krirk-krai said the amendment would promote good governance and transparency. Foreigners wishing to hold more than 50 per cent in businesses under Annex 2 and 3 could apply for approval on a case by case basis.

The old law imposes a maximum three-year jail sentence and Bt100,000 to B1 million in fines. But the new law would increase the fine from Bt500,000 to Bt5 million.

Director general of the Business Development Department, Kanissorn Navanugraha, said the law should be clearer and the investment atmosphere should be transparent. The department would develop the system of checking company structures and would randomly check to see who was violating the law.

Asked if foreign investors would pull out, Krirk-krai said: "It's their right to invest, but I believe that quality foreign investors will understand this issue."

The Nation

[lukamar]

The problem is not with the new law or if it affects the majority of small businesses directly. The problem is that the now government in their wisdom, or lack of it, can change the rules instantly and don't seem to be the least concerned about the impact of their act. While the new law may not affect many businesses directly the possibility of an escalation or rule changes that do is very real. This has to be troubling to anyone that has investments in Thailand.

Before all the government trouble and the protests in Bangkok we pulled out of 2 major projects and have now pulled out all our investments. We now only have our house, in wife's name, and a few thousand baht in the bank (for house repairs) and it's going to stay that way until the situation stabilizes, which could take years.

[ramidin]

"Foreign investors who altogether hold more than a 50 per cent stake in a company must lower their stake within a year," Pridiyathorn Devakula said after a cabinet meeting.

The amended act would include the requirement on the voting rights of the board members and increase the penalty for violators.

What does this mean??? So a company with an equal number of directors now cannot have a (foreign) chairman with a casting vote to break a deadlock?

Can a Thai chairman have a casting vote?

I see many, many investors voting with their feet...........................

However, let us not forget, foreigners can still have 100% ownership of a company, and have a company that owns land, with BOI approval www.boi.go.th , PLEASE tell me they are not going to interfere with that.

PS from personal experience BOI approval, and compliance is no picnic, so it should not be see as a 'soft option'.

[jetjock]

BREAKING NEWS

Analysts rap Thai business law changes

The chairman of the Federation of Thai Capital Market Organisations warned Thailand to brace for a halt in new foreign investment and the gradual withdrawal of foreign investment because the amendments to the Foreign Business Act passed by the Cabinet Tuesday are construed as unwelcoming signs.

Dr. Kongkiat Opaswongkarn added that foreign-invested companies operating in the retail, automobile and telecommunications sectors will be those hardest hit by the amendments which restrict foreign ownership and voting rights to 50 per cent.

The federation executive said the changes -- subject to final approval by the military-appointed National Legislative Assembly -- are deemed "unwelcoming" signals from Thailand to foreign investors.

"I believe foreigners won't put more money in Thailand as a result of apprehension over these new rules. At the same time, those already here would have to leave to comply with the cap and there will be very few Thai investors who are financially capable of filling those gaps," he said.

Dr. Kongkiat said the Thai currency and the stock market are likely to bear the brunt of the move as a consequence of such moves seen as hostile to foreign investment.

Equity research analyst Thanomsak Saharatanachai of Pattanasin Securities said a host of negative factors, including the bombs during New Year and the latest move on the Foreign Business Act are likely to slow the country's economic growth by up to one per cent this year.

Operating profits of listed companies are also likely to fall. Yet even these projected profits could disappear in the light of political certainties, including the constitution drafting being completed on schedule to pave the way for general elections. (TNA)

[Rdrokit]

Watch the baht in the coming days and months............

I'm watching it, and for some reason nobody can explain [to me], it keeps going up against USD and CHF. Hoz that??

It cause the dollar is falling faster than the baht thanks to Bushenomics. The guys a bigger idiot than the Thai govt.

[ramidin]

OOPS, should always read the fine print, answered my question. my thanks to sriracha_john.........

'This law mainly affects foreign companies in the service industry. Most foreign manufacturing companies are exempt, including companies that fall under Board of Investment mandated waivers.'

[Chua]

Thailand to limit foreign stake in firms to 50 per cent

BANGKOK: -- Thai government will limit foreign investors to holding no more than 50 per cent of the shares or the voting rights in companies here under legal changes approved Tuesday, Finance Minister Pridiyathorn Devakula said.

"Foreign investors who altogether hold more than a 50 per cent stake in a company must lower their stake within a year," Pridiyathorn Devakula said after a cabinet meeting.

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

The 50-per cent cap will only apply to companies that deal with areas considered important to national security, or that have an impact on natural resources or Thai culture, he said.

Thailand takes another giant leap BACKWARDS in world economic standing, as the pseduo-government shoots another hole in our collective feet. Will they be happy when the SET and BAHT drop to 50% of their current levels? Then perhaps they'll change the law, AGAIN! Whoopee... come jump on board the rollar coaster of the east and the laughing stock of the world.

[jetjock]

[

It cause the dollar is falling faster than the baht thanks to Bushenomics. The guys a bigger idiot than the Thai govt.

I agree totally. It sort of reminds me of a Jim Carrey movie of a few years ago titled "Dumb and Dumber" !

[Mic]

Watch the baht in the coming days and months............

I'm watching it, and for some reason nobody can explain [to me], it keeps going up against USD and CHF. Hoz that??

It cause the dollar is falling faster than the baht thanks to Bushenomics. The guys a bigger idiot than the Thai govt.

Agree

[Chris Bussell]

Thailand to limit foreign stake in firms to 50 per cent

BANGKOK: -- Thai government will limit foreign investors to holding no more than 50 per cent of the shares or the voting rights in companies here under legal changes approved Tuesday, Finance Minister Pridiyathorn Devakula said.

"Foreign investors who altogether hold more than a 50 per cent stake in a company must lower their stake within a year," Pridiyathorn Devakula said after a cabinet meeting.

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

The 50-per cent cap will only apply to companies that deal with areas considered important to national security, or that have an impact on natural resources or Thai culture, he said.

The cabinet approved the changes to the Foreign Business Act "in principle" on Tuesday.

Surayud said the government's top panel of legal advisers would continue to work on the details of the law to ensure precision and transparency.

"The Council of State is authorized to work on the details to make the law precise and transparent, without any need to be resubmitted for cabinet approval again," he told reporters.

"It will take some time for the law to take effect," he added.

The Cabinet approved Tuesday the foreign business law amended by the Commerce Ministry.

The amended act would include the requirement on the voting rights of the board members and increase the penalty for violators.

Netpreeya Chumchaiyo, deputy government spokesman, said after the Cabinet meeting that the Council of State is assigned to review the draft amendments.

Earlier, Joint Foreign Chambers of Commerce warned that the amendment might affect their decisions to do business decision.

Commerce Ministry and Finance Ministry are scheduled to make seperate press conference at 3pm.

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

Pridiyathorn insisted that foreign companies would not be scared off by the final version of the law, which has not yet been released.

Foreign business community in Thailand has urged the government to postpone the changes for at least six months.

"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," Pridiyathorn said.

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

The minister was speaking after attending the cabinet meeting which will consider the changes.

Pridiyathorn said he had consulted some foreign investors about the changes to the Foreign Business Act and more than half of them had found the new rules acceptable.

"I myself will talk with them. 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.

"We have a record of welcoming foreign investment. We are not hostile to them. Foreign investors have made Thailand develop and we are certainly still adhering to this policy," he said.

The revised law is expected to redefine shareholder rights and ownership structures for local subsidiaries of international firms.

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

-- AFP/The Nation 2007-09-09

Dear George

Love the prompt way you deliver the important messages, not to sure where this one is all leading for the Thai economy? I have only studied business and economics at a collage level, pre university and I have many years of working for succesful business, including my own. So may be I am missing somthing?

I have tried to spend my money wisely in Thailand to support local business rather than offshore and was looking to start up a business with the Thai girlfriend to help her and her family. I was also looking to buy a property for her and myself.

Given the level of investment I have been and was going to make in the future, I would be looking for voting rights while supporting local economies and providing jobs within Thailand for the Thai nationals. My experience and capital in flow will be on hold untill the economic forcasting and management show why this is hapening?

He who pays the piper calls the tune and partnership is the one ship never to sale in.

[egeefay]

Regarding the new rules limiting foreign stake in Thailand to 50% the Thai Finance Minister Pridiyathorn Devakula gave as his reasons for the new law as follows.

The new law is acceptable because

1.(Foreign investors) have not yet seen the details. If they had seen the details, I am sure that they would be happy,

2. "Why should we postpone it when we have worked on it for three months.

3. This is Thailand

4. he had consulted some foreign investors about the changes to the Foreign Business Act and more than half of them had found the new rules acceptable.

5. but (foreign investors he consulted)have not seen all of the details and the commerce minister cannot disclose the bill before the cabinet gives its approval," he said.

6. "We have a record of welcoming foreign investment. We are not hostile to them. Foreign investors have made Thailand develop and we are certainly still adhering to this policy," he said.

Surely there must be a mistranslation somewhere. I cannot believe and educated person would make statement like these

[Cpt_M0ney_Sh0t]

Watch the baht in the coming days and months............

I can only pray, I hope their moronic endeavors push it back down to 40-45 to the dollar or more. When it dose I will do a lil happy "Sum num Na" dance of Joy as I put the down payment on my house

[cutter007]

Thai Finance Minister to explain amendments to foreign investors

Speaking after the Cabinet meeting, Pridiyathorn said he believed the amendments would bring more clarity and thereby greater confidence in Thailand's investment climate.

Bit early for the first cuckoo of Spring isn't it?

Cuckoo

Cuckoo

Cuckoo

Since when did restricting or removing someone's control of their money, or the benefits they derive from either the money or the control of it, bring greater confidence (from the losers) in those removing the control?

Better confidence for Thai investors in Thailands investment climate.

Edited January 9, 2007 by cutter007

[pap]

The Minister of Finance was quoted, "Why should we postpone it when we have worked on it for three months. This is Thailand," he added.

I doubt his job is in jeopardy. If your Thai please got to Kassesart and learn to grow rice because if guys like this are going to run your country you will need to know how to feed yourself. Other jobs will go elsewhere. Forget about the other classes they have there because they won't much matter.

So much for hoping these guys would make things better.

[pap]

What are the possible benefits for Thailand?

The agrarian society Martin always talks about will become a reality. There is a certain beauty in this simplicity.

I just have a problem with the lower life expectancies and standard of living that come with it. I am not talking about material gain although I am all for that. I am talking about standard of living which often gets equated to materialism. They are not the same thing.

Any gains for Thais will be short term. The feel good that most people get when they feel they are empowered and taking something back that they feel should be theirs can not be underestimated. But the damage giving in to this temptation can not be over estimated.

Mai bpen rai I guess.

[womble]

I beleive it is the Monarchs wishes to return the country to self sufficiency.

Perhaps what we are seeing is the old folks incharge simply carrying out what they believe are his wishes regardless of the impacts and without doing it in a thoughtout way that would be beneficial.

[pap]

As farangs are forced to sell large amts of stock at ever lower prices and taking losses, rich Thais will be grabbing up the bargins. Yup, it translates "bend over and touch your toes, I'll show you where the wild goose goes!

Thats what mexico thought 30 years ago. Its still a sh@#ho1e because of that.

If you want to be slave labor to your neighbors this is a good way to accomplish it. Contrast Mexico with Costa Rica and you may see where this path leads for Thailand. It took Mexico 25 years to start to recovery after similar actions. Their actions actually went further than the current Thai actions but if the Thais follow this path a little further they will be there.

Too bad.

[pap]

Thailand....tiger economy...how about the mouse that roared.

University education in Thailand, is anybody graduating in business economics here?

I bet the Vietnamese and Cambodians are rubbing their hands, at yet another masterstroke from the law makers of Thailand.

If you were ever going to make it...you would have made it by now...pride comes before a fall, and if you are too proud to admit that farang investment is crucial to your countries future, then go ahead and carry on with policies like this, and see the business disappear.

This is not just Farang investment. It is foreign investment. Its the concept that fails to work in todays world.

Thailand should be wary of outside investment but there are ways to be careful and not kill the golden goose.

This is not one of them.

[kmart]

Self-sufficiency might be achieved by embarking on a massive revamp of the education system here.

Only this has / will never happen due to the present elite are scared of ceding knowledge and thus power to a self-confident populace that have more than a nationalistic brain-washing as an education.

A return to agrarian self-sufficiency was tried in China with the "Great Leap Forwards" programme that annihilated over 30 million people with the most ironic title ever.

Oh! And lets not forget Cambodia's little foray into agrarian self-sufficiency 30 years ago?