Pm Surayud's Speech To Joint Foreign Chambers Of Commerce

[george]

FULL SPEECH

PM Surayud's speech to Joint Foreign Chambers of Commerce

Prime Minister Surayud Chulanont delivers speech on "Partners for a sustainable future: An invitation for foreign businesses in Thailand" at 12.30pm on Monday.

Mr. Peter van Haren,

Chairman of the Joint Foreign Chambers of Commerce in Thailand (JFCCT),

Excellencies,

Distinguished Members of the JFCCT,

Ladies and Gentlemen

I am pleased to be here today to address the members of the Joint Foreign Chambers of Commerce in Thailand. I thank you for your invitation and kind introduction.

This opportunity to meet with distinguished investors, diplomats and other friends of Thailand is most timely. I am sure all of you are interested in hearing about the priorities of this Government over the coming year. Many of you are doubtless concerned about the future of political reform and economic policy. I thank you for your interest, and look forward to our dialogue today.

It should be clear to you all that since the peaceful military intervention last September, Thailand has entered another period of strategic transition. We are moving through uncharted waters but with a clear destination to be reached within a very limited time.

Every nation faces such watershed moments in its political and socio-economic development and Thailand is no exception. The events of October 1973 and 1991 - 1992 are the most recent in our own modern history. Both times the Kingdom emerged with enhanced democratic credentials, with stronger foundations to deliver a better life for the majority of its citizens.

I am confident that this current transition will also be accomplished successfully, although no one should underestimate the great challenges we face. Deeply entrenched vested interests will struggle to defend their special access to power and money while this Interim Government is committed to eradicating their influence once and for all. No one should underestimate our resolve in this matter either.

To achieve our stated and unshakeable goal of free and fair elections before the end of this year, this Government is addressing four major reform themes:

-- Successful political reform;

-- The restoration of national unity, which will require healing the political divide between Bangkok and the

rural majority and bringing reconciliation and justice to our brothers and sisters in the deep South;

-- Reducing the income gap; and most importantly,

-- Strengthening the rule of law, so that justice is available to all citizens which will require rooting out corruption and reforming the administration of justice and the police.

I will address each of these themes and then discuss some specific economic issues…which may be of passing interest to you. But please keep in mind that each and everyone of this Government's actions is designed to help Thailand become a more transparent, more efficient, more productive, more equitable and more sustainable society, goals which I am sure you share.

Excellencies,

Ladies and Gentlemen,

Looking first at our goal of successful political reform, I wish to assure you that the tragic events of New Year's Eve will not deter us from pushing forward according to the timeline prescribed in the Interim Constitution. My Government deeply regrets the loss of innocent lives and is pursuing the perpetrators vigorously. At the same time, we are putting in place more effective systems of surveillance to ensure the safety and security of Thais and foreign visitors alike.

Political reform remains our top priority. The Constitution Drafting Assembly (CDA) and its chairman have been selected and work will begin on drafting the new Constitution within days. The Government will seek to promote large scale public participation and inclusive national debate. We will also ensure that the new Constitution provides for the effective functioning of a vibrant system of checks and balances. Although we are not an elected government, we will ensure the swift return to a more democratic government that can fully reflect the aspirations of the people.

Secondly, restoration of national unity means that we will reinvigorate our peaceful approach to promoting reconciliation in the Deep South. This year, we will ensure that the newly-restored Southern Border Provinces Administrative Centre (SBPAC) is given the resources it requires to pursue its coordination work. It will be difficult to eliminate violence altogether, but over the next few months the space for extremism will be reduced. Development activities will be strengthened, including cooperation with neighbouring countries in the Indonesia - Malaysia - Thailand Growth Triangle, so as to expand opportunities for people living in the area.

Thirdly, tackling income inequality and promoting social justice will be further pursued. Improved access to education and health, as well as improvements in the quality of the public services offered, will pave the way for a more knowledgeable and healthy workforce. Addressing these concerns will truly open up Thai society and make it more robust to face future challenges.

Finally, progress in strengthening the rule of law will bring benefits in terms of eradicating corruption in government as well as in business life. Indeed, we are determined that the rule of law will apply in all spheres, with no double standards. The work of administering justice has already been revitalized. I am currently studying the recommendations put forward for reform of the police, who are our front line in the administration of justice. Again, difficult choices are involved, but it is my determination to press forward this reform within the term of this Government.

Excellencies,

Ladies and Gentlemen,

If 2007 is to be the Year of Great Reforms, this also means putting the economy on a sustainable track. Our economic agenda is clear. Guided by our key operating principles of transparency, justice, efficiency and the economical and sustainable use of resources, we will be moving ahead to pursue further economic progress. Our efforts in 2007 will be geared towards expanding business opportunities and improving productivity to adjust to the world economic slowdown, while expediting prioritized infrastructure development projects and proceeding on legal reform.

On this point, I can categorically say that Thailand will continue to engage with the global economy. Amidst the competition in the global market place, no country can take another course. Even as we build up our internal resilience, Thailand will continue to embrace international trade and investment as key drivers of our economic dynamism.

Let me remind you of some key facts and figures that support the picture of strong fundamentals in the Thai economy. Despite the successive shocks of drought, flood, high oil prices and political uncertainty, our exports continue to show a strong performance with an increase of around 16.9 percent year on year. Long term investors continue to show substantial interest in Thailand, with the Board of Investment approving approximately 3 billion US dollars in foreign direct investment during the last 3 months. This is compared to the figure of 11 billion US dollars during the first 9 months of last year. New investments have been announced in the past weeks, including by Ford and Panasonic. And although this year Thailand and other Asian economies may be constrained by the world economic slowdown, we are confident that a growth rate of 4 - 5 percent can be maintained. Despite upward pressures on the baht, our exchange rate regime and expansionary fiscal policy are designed to ensure this growth.

Globalization and regional cooperation will continue to provide Thailand with many opportunities. The recent East Asia Summit in Cebu which I attended laid out bright prospects for the future of East Asian countries. This Government will do its utmost to grasp these opportunities. It will doubtless mean change. However, what we are doing is to ensure that Thailand can manage this change successfully.

Promoting the "Sufficiency Economy Philosophy" of His Majesty the King as a fundamental principle of development policy means that we will focus on stable growth, sound macro-economic discipline and the equitable sharing of economic benefits as we compete in the globalized world. Growth with quality means greater concerns for good governance and management of risk. But such concerns do not impact on the market mechanism, nor do they influence the openness of the Thai economy. In fact, the "Sufficiency Economy Philosophy" is a Thai model for sustainability, the importance of which is only now becoming recognized around the world. As an early adopter of a sustainable approach to development, Thailand should, I believe, be praised, for it is a path down which every country or company will have to travel sooner rather than later.

Close scrutiny of the Government's record shows that we promote openness. We remain committed to the free market, to the liberalization of trade in goods and services. Thailand has thrived, and will continue to thrive, on foreign trade and investment. We very much look forward to pursuing FTAs in the ASEAN framework which will benefit the regional economy as a whole. At the same time, to ensure transparency we have subjected our bilateral FTA negotiations to scrutiny in terms of the key principles of transparency, justice, efficiency and cost-effectiveness. As such the Japan-Thailand Economic Partnership has been debated by the Cabinet, undergone a public hearing and will be submitted to the National Legislative Assembly for consultation. Above all, this process will ensure that, for once, our people are able to manage the changes that are to come.

We are actively stimulating economic activity through continuing the implementation of carefully selected mega projects. While ensuring continuity, we have also subjected mega projects to the same means testing. Those that are beneficial to the general public will be expedited.

Accordingly, the expansion of the mass rapid transit system in Bangkok will be realized, involving 5 additional lines covering 118 kilometres. The Ministry of Transport, together with other agencies concerned, is currently conducting feasibility studies and detailed design for further submission to the Cabinet. We expect procurement for these projects to commence soon and to be completed within the tenure of this Government.

Other high priority infrastructure projects involve improvement of the logistics network, which will reduce transportation costs, and an integrated water resource management system to address floods and droughts. Over the coming months, we will be ensuring the facilitation of budget disbursements so as to promote maximum feed-through effects for the entire economy.

Infrastructure is also a major focus for our economic cooperation with neighbouring countries. The expansion of communication routes with neighbouring countries, such as the Second Friendship Bridge across the Mekong, will bring increased opportunities from leveraging Thailand's geographical and logistical advantages. By promoting common prosperity with our neighbours, we are also actively enhancing our own potential.

New opportunities are being fostered in several sectors. In the energy field, these result from pro-active approaches in addressing the energy crisis. For instance, the Petroleum Act will be revised to attract more investments in the exploration and extraction of petroleum fuel. Invitations for investment in new Independent Power Producers (IPP) will be announced around March, calling for some 400 billion baht in fresh investment in power generation. Meanwhile, cooperation is being sought on bio-fuels.

In the automobile sector, the Board of Investment has announced new incentives for the manufacturing of low-cost, fuel efficient automobiles. The so-called ECO Car will benefit from Thailand's strong production base in the automobile sector, and by responding to market demand will complement our existing specialization in the field of pick-up trucks.

In addition, the Government believes that market opportunities will expand when competition is fair. Thus we are leveling the playing field in previously distorted industries such as the telecommunications sector, ensuring the proper operation of independent regulators. Retail and wholesale trade are being examined to ensure balance. Competition law is also being strengthened through the setting of clear criteria.

At the end of the day, I firmly believe Thai consumers and all foreign investors in the Kingdom will benefit. Through all these measures, the Royal Thai Government is improving governance and investing in the physical and intellectual infrastructure of the country. By focusing on stimulating the real economy, we are establishing a firmer basis for economic growth.

Excellencies,

Ladies and Gentlemen,

The same concerns for transparency and predictability guide the proposed revision of the Foreign Business Act (FBA). Let me stress that the proposals will not affect existing foreign companies in manufacturing industries, export businesses, BOI-promoted industries or those businesses not listed under the Act. We merely seek to put an end to the previous precarious position many investors had been put into as a result of the investigation into complaints about Foreign Business Act violations. This determined, above all, the timing of the revision.

We know businesses welcome predictability. We know businesses like to see fairness and transparency, without selectivity. The measure is aimed to achieve these objectives by creating a level playing field. The amended Act is expected to strengthen our oversight capacity, address previous loopholes, while avoiding the creation of unnecessary obstacles to FDI. Indeed, where impediments are found, we will be looking to see how we can inject additional elements of liberalization into the measure, just as increasing flexibility is being shown over the question of capital reserve requirements.

I thank the JFCCT for making its views on this matter known at an early stage, including as reflected in the letter to me from Mr. van Haren. Let me assure you that the Government takes into serious account the JFCCT's concerns. We are serious about dialogue and ensuring transparency in all that we do. This is why I, together with the Government economic team, am here today at your kind invitation. And this week, Ministers and officials concerned will be making additional clarifications. The Cabinet decision 2 weeks ago was a decision on the principle, and the final text will still have to undergo various processes before it is approved by the National Legislative Assembly.

I wish to reiterate that the proposed revision should not be construed as an act of "deliberalizing" the Thai economy. It represents legal and technical adjustments rather than any change in overall economic direction. Thailand and Thai companies will continue to welcome foreign partners and external participation. Indeed, the undertaking is already given that the list of restricted activities attached to the Foreign Business Act will be reviewed on an annual basis. As I have repeatedly stressed, the Royal Thai Government will uphold its international obligations. What we do will therefore be WTO-compliant and will be consistent with our international undertakings.

I would urge that all stakeholders take time before coming to any firm conclusion about proposed adjustments. You can be assured that we are looking at the long term. We will not, by design or by default, kill the goose that lays the golden egg.

In the meantime, we are continuing to lay down the crucial foundation for Thailand's long term competitiveness. The national vision will need strong building blocks for our economic resilience and efficiency and productivity. We are moving ahead on these long term improvements, including through preparation of the National Productivity Improvement Plan and the National Intellectual Infrastructure Plan. In order to achieve quality growth, we need to constantly develop the quality of our human capital, physical capital and technology, particularly where SMEs are concerned. We also need better ways to combine them to produce goods and services, and develop new ones. This will require a better innovation system to nurture new ideas.

I hope that our foreign partners will join us in this great collective enterprise for us to prosper together. Indeed, we urge you to put forward recommendations for improving efficiency, transparency and productivity, not only in your businesses, but also in government. Join us in the fight to promote corporate and government responsibility. In so doing you will be renewing your commitment to the Kingdom of Thailand as we celebrate the auspicious occasion of His Majesty the King's 80th Anniversary.

With regard to this auspicious event, I wish to take this opportunity to invite all foreign businesses operating in Thailand to join the Kingdom's celebrations by launching your own "sufficiency economy" or sustainability projects under the theme of "From His Majesty's wisdom, sufficiency for our children".

You can launch such projects within your own organizations or in connection with the communities in which you operate. The sustainable use of resources means seeking greater efficiency in every area in which you operate which in the long term is, I believe, good for the bottom line.

Excellencies,

Ladies and Gentlemen,

The Year of Great Reforms that I have outlined represents our progress toward a more sustainable development path, both in political and economic terms. In view of the many challenges along the way, it will require cooperation on the part of all Thais. It also will require the active cooperation of all our friends. You can be assured that Thailand does not take the contributions of the foreign business community for granted. We need the trust and confidence of our partners for these actions to succeed.

It is my fervent hope that our good friends in this room will continue to support our efforts to build successful political reform and establish the socio-economic preconditions for quality growth. Through our actions in 2007 I fully expect that Thailand will become a better place in which to invest and do business. It will indeed become more transparent, more efficient, more productive, more equitable and more sustainable - all long-term goals to which every nation should aspire.

Thank you very much for your kind attention.

--The Nation 2007-01-24

[Jai Dee]

PM made a public statement on govt policy to Foreign Chamber of Commerce

Prime Minister Surayud Chulanont made a public statement on the government policy to the representatives from the Foreign Chamber of Commerce at 11:30 hours. Therefore, foreigners would understand the actions of the government, following former prime minister Thaksin Shinawatra’s interview session with foreign media.

Gen. Surayud commented that Pol. Lt. Col. Thaksin’s interview with the Japanese media may discredit the Thai government. However, he said the interview only shows one viewpoint, and countries around the world are watching Thailand’s policy and direction. He stated that if the confidence of foreigners, the national economy, and the trade negotiations are unaffected, then there would be no problems. He said the public statement aimed to increase the confidence of foreign investors so they will come to invest in Thailand, and he also talked about the Foreign Businesses Act and stressed on equality of investors.

Gen. Surayud said nobody wants political reform to take place, but he believes that if the government administers the country justly and without any hidden benefits, no problems would arise.

He however did not comment on the conditions for Pol. Lt. Col. Thaksin’s possible return to Thailand.

Source: Thai National News Bureau Public Relations Department - 24 January 2007

[plachon]

That's actually one darn good speech imo. Did he deliver it himself, and if so, what is the PM's English like?

Hopefully better than his Criminal Justice Doctorate from a foreign land predecessor's.

[ColPyat]

That's actually one darn good speech imo. Did he deliver it himself, and if so, what is the PM's English like?

Hopefully better than his Criminal Justice Doctorate from a foreign land predecessor's.

He did deliver it himself, his English is OK, much better than Thaksin's.

But that doesn't change the fact that his aspirations and intentions are comically out of tune with reality.

[Mid]

yep , he can Talk the Talk no prob's .....

now

Walk the Walk .

[cclub75]

But that doesn't change the fact that his aspirations and intentions are comically out of tune with reality.

Indeed.

There is always that feeling (strong regarding thai issues) that we have stage, with actors, a text, and... the reality. And between thoses : a huge gap.

Surayud wanted to be sweet, after some serious concerns and attacks regarding economic policies. But he doesn't understand that foreigners don't have the same fascination for magical words and "thai rethoric".

I mean : it's not enough to say "I can assure you that Thailand is still loving FDI, and that we want to open up" etc. Thoses are just words. Right now, the facts contradict the words.

They need a serious reality check.

I should add that the speech contains some strange things :

-" Thailand has entered another period of strategic transition. We are moving through uncharted waters but with a clear destination to be reached within a very limited time.

-"If 2007 is to be the Year of Great Reforms"

-"this Interim Government"

-"time line"

They have 1 year, and meanwhile they want to make a "strategic transition".

There is a contradiction between the "humble face" of Surayud, and the lifespan of his gvt, and the huge goals they want to achieve.

Edited January 24, 2007 by cclub75

[thedude]

i was there today. his english is good and the speech was well delivered. in fact several other ministers were present too, about 6 or 7 including pridiyathorn and the commerce minister and the trade minister. the overall mood was to appease the investment community, but on the sidelines people understood it for what it was. i told others that it was like going to a blockbuster movie, you get entertained and have a good time, buy after that when the show is over and you walk out on the street, reality remains unchanged.

after that i spoke at length with a senior guy from a prominant american bank in the citi, and he shared with me his frustration with the recent policy changes and the mountains of paperwork that needed to be done for each and every foreign corporate client everytime something new is announced. the level of accountability and prefossional standards are high, but having to rely on legions of lawyers to decipher the nuances of government policy (and u-turns) is extremely taxing. he said there's tons of cash sitting on the sidelines as clients dont want to repatriate and pay withholding tax, but at the same time dont want to invest and pay 30% more to the central bank. they need to know the facts, which are hard to come by. meanwhile his regional head is breathing down on him and asking him to take a position for this year, if there's no money to be made in thailand lets not waste time and go somewhere else this year....hearing this you realise that all those warnings about the consequences on regional competitiveness is very real, especially for big corporates and banks that need to churn results all the time or heads roll. its really a cut throat scenario.

meanwhile, PM makes a charming joke, smiles for the cameras and makes reassurences about the goal of transparency and good gevernance and how the changes are really good for everyone...

[Swelters]

A good speech delivered to a tough audience.

Yes, one has to be sceptical in these matters.

But recent history prompts some scepticism toward unbridled enthusiasm for democratization and free markets too. Thailand is a Mom and Pop store among Walmarts, and Walmarts are not always the best end, though their spokespersons are often able to demonstrate consistency with principles of market efficiency. There were lessons to be learned from 1997. There could be more behind the scathing attack on Thailand's policies in this week's Economist than deep interest in Thailand's future.

On the surface my interests will be adversely impacted by some of the new laws. But I also want stability and preservation of many elements of Thai culture. That could be a higher goal. I'm not rushing to make any conclusions.

Swelters

[ColPyat]

On the surface my interests will be adversely impacted by some of the new laws. But I also want stability and preservation of many elements of Thai culture. That could be a higher goal. I'm not rushing to make any conclusions.

Swelters

And as Thais can't eat their culture they demand a sound economical policy that assures them much needed development.

[marshbags]

i was there today. his english is good and the speech was well delivered. in fact several other ministers were present too, about 6 or 7 including pridiyathorn and the commerce minister and the trade minister. the overall mood was to appease the investment community, but on the sidelines people understood it for what it was. i told others that it was like going to a blockbuster movie, you get entertained and have a good time, buy after that when the show is over and you walk out on the street, reality remains unchanged.

after that i spoke at length with a senior guy from a prominant american bank in the citi, and he shared with me his frustration with the recent policy changes and the mountains of paperwork that needed to be done for each and every foreign corporate client everytime something new is announced. the level of accountability and prefossional standards are high, but having to rely on legions of lawyers to decipher the nuances of government policy (and u-turns) is extremely taxing. he said there's tons of cash sitting on the sidelines as clients dont want to repatriate and pay withholding tax, but at the same time dont want to invest and pay 30% more to the central bank. they need to know the facts, which are hard to come by. meanwhile his regional head is breathing down on him and asking him to take a position for this year, if there's no money to be made in thailand lets not waste time and go somewhere else this year....hearing this you realise that all those warnings about the consequences on regional competitiveness is very real, especially for big corporates and banks that need to churn results all the time or heads roll. its really a cut throat scenario.

meanwhile, PM makes a charming joke, smiles for the cameras and makes reassurences about the goal of transparency and good gevernance and how the changes are really good for everyone...

It,s poles apart from the adulterated verbal brown related stuff that Thaksin spewed out before he left office to reassure the selected audience of diplomats ect, that Thailand was a sound investment ????

At the same time offer various Thailand assets up for sale / grabs in such a pathetic, embarrassing presentation.

He didn,t get a very positive press both here and internationaly from it as i recall, quite the opposite in fact and was well ridiculed for it.

You cannot fool / bulls*** the people all of the time as he has found out to his displeasure

Now give the present intitutions at least a chance before attempting to undermine them if i may insubordinately offer to a wise and learned observation which you are entitled to voice as am i and others are allowed to disapprove of, of course..

marshbags

History wil prove the true metal of KAMOY THAKSIN and his self interest, non transparent minipulation of the financial intitutions.

Edited January 24, 2007 by marshbags

[marshbags]

Apologies it appears the post was duplicated for some reason, hence the edit.

marshbags

Edited January 24, 2007 by marshbags

[Plus]

if there's no money to be made in thailand lets not waste time and go somewhere else this year

How exactly he intends to make money here? Thais made it pretty clear they want to restrict baht speculation. Perhaps THERE IS no money to be made in that business.

[sriracha john]

"Just today there was an excellent session between the Prime Minister (and his economic ministers) and the combined Chambers of Commerce and Ambassadors from major trading and investment partners. It was an opportunity for the Thai government to clarify recent economic policy questions and to take questions. It seemed to be very well received by all."

- Response during tonight's online chat by Ralph Boyce, U.S. Ambassador to the Kingdom of Thailand

Edited January 24, 2007 by sriracha john

[ColPyat]

"It seemed to be very well received by all."

- Response during tonight's online chat by Ralph Boyce, U.S. Ambassador to the Kingdom of Thailand

Funny.

Right after the speach was televised on Channel 11 one foreign attandent who spoke very well Thai was interviewed, and his statement was somewhat more cautious, saying that things are not that clear at all yet regarding investment in the future (which corresponds to the statement by the TV poster here who has been attending this speach in person), as opposed to a Thai burocrat who said that things are very clear now.

Very reassuring that at least the speach at the Joint Foreign Chambers of Commerce has at least made things clear for the Thai Burocrats in attendence.

Edited January 24, 2007 by ColPyat

[sriracha john]

"It seemed to be very well received by all."

- Response during tonight's online chat by Ralph Boyce, U.S. Ambassador to the Kingdom of Thailand

Funny.

Right after the speach was televised on Channel 11 one foreign attandent who spoke very well Thai was interviewed, and his statement was somewhat more cautious, saying that things are not that clear at all yet regarding investment in the future (which corresponds to the statement by the TV poster here who has been attending this speach in person), as opposed to a Thai burocrat who said that things are very clear now.

Very reassuring that at least the speach at the Joint Foreign Chambers of Commerce has at least made things clear for the Thai Burocrats in attendence.

Actually, he's not a Thai burocrat, he is, as his title says, the American Ambassador. It's not surprising that since there were dozens and dozens of people in attendance at the speach, that different reactions occur. There are not too many speaches given anywhere where everyone in attendance agrees completely with one opinion.

Also, the quote provided by the non-Thai burocrat, American Ambassador didn't say things are very clear now, he said the PM had an opportunity during his speach to clarify things. The two are quite different.

I'm not sure how many Thai Burocrats attended the speach, but the American Ambassador seemed to come away from it with a positive reaction and he spoke that in very well English.

[sriracha john]

'We'll get tough with old regime'

Prime Minister Surayud Chulanont yesterday vowed to act tough against remnants of the previous government once and for all while promising to create a level playing field in the foreign business law and tighten rules to tackle government corruption and also reform the police force.

Surayud sought to reassure some 700 members of the Joint Foreign Chambers of Commerce and the international business community that his interim government was capable of overseeing political and economic stability during its brief term.

- The Nation

[thedude]

if there's no money to be made in thailand lets not waste time and go somewhere else this year

How exactly he intends to make money here? Thais made it pretty clear they want to restrict baht speculation. Perhaps THERE IS no money to be made in that business.

corporate banking is not about currency speculation, its about the active deployment of funds from your clients from which the bank makes its money. if you are not invested and funds are not moving, you cannot cover the overheads of your unit. given scarce human capital, the bank would rather deploy valuable team members to guangdong, or vietnam, where growth is exploding and they don't have enough expertise to cover the deal flow. its the opposite scenario here where you get good people sitting around scratching their heads. its a no brainer for a bank trying to optimize growth and shareholder returns.

[Old Man River]

The PM cannot change the fact that the country is riding a wave of nationalism and by nature that does not bode well for foreigners. We await the changes on the retail laws etc.

Related, did anyone catch the recent comment by Thailand's domestic airline pilots? Their representative told the government that foreign pilots should be prohibited from flying domestic routes so that the foreign pilots could not learn Thailand's strategic locations. As unbelievable as it seems, the government said they would consider this as they re-write these laws as well.

[OlRedEyes]

I really wish Thailand well, but though this speech paints one of those pretty pictures that the Thai love so much, it seems to be just another perfect fantasy being painted. Everybody lives happily ever after.

To lead a country one needs vision, but it must stay in hard reality. I cannot see any businessman taking any comfort from such a speech, especially since the basis of any country's development, the quality of education of it's people, is never addressed. As long as that is so sadly lacking, the Thai will not be able to compete on any level playing field to the extent that freer international competition can be allowed.

Am I just missing it, or is it true that with all the hot air flying around the past couple of months the absolutely necessary reform of basic and higher education is never mentioned. Actually, I am hearing the opposite, return to traditional values, which include such things as don't ask questions, don't rock the boat, don't think individually. Control seems to be back high up on the agenda, and that precludes quality education.

I hope I am wrong. For Thailand's sake.

Edited January 25, 2007 by OlRedEyes

[Plus]

The PM cannot change the fact that the country is riding a wave of nationalism

Is it a fact? I haven't noticed anything out of the ordinary.

Related, did anyone catch the recent comment by Thailand's domestic airline pilots? Their representative told the government that foreign pilots should be prohibited from flying domestic routes so that the foreign pilots could not learn Thailand's strategic locations. As unbelievable as it seems

Did they erally say that, it's unbelievable indeed.

Thedude, corporate banking is not only about currency speculation, true, I meant to point that not everytime a foreign bank makes shitloads of money, Thais are happy.

The Nation quoted quite a few opinions today, generally their selection fits with what people say here - it's a nice talk but not reassuring enough in itself. Positive comments were along the "it's nice to start talking" line.

[Jai Dee]

Foreign investors still wary of proposed revisions to investment laws

BANGKOK, Jan 25 (TNA) – The Thai government’s assurance Wednesday that Bangkok was not retreating from the global economy despite planned revisions to investment laws was received with caution by foreign business executives.

They expressed concerns that the draft legislation unveiled by the government earlier this month could force some multinational companies to reduce their Thai holdings.

Prime Minister Surayud Chulanont told a gathering of about 700 diplomats and members of the Joint Foreign Chambers of Commerce in Thailand (JFCCT) Wednesday that the revisions to foreign ownership laws should not be cast as an act of de-liberalisation.

He said it was a legal and technical adjustment, rather than any change of Thailand’s overall direction.

After the talk, both the prime minister and his senior economic ministers who accompanied him were bombarded with questions, mostly about the new foreign business laws and the problems at Bangkok’s Suvarnabhumi Airport.

Commerce Minister Kirkkrai Jirapaet insisted the new proposed rules did not stem from “hostility or antagonism” to foreign investors, but were drafted for the sake of “clarity, fairness and good governance”.

Until now, Thai law had allowed foreigners to hold nominal interest of no more than 50 per cent but exercise majority voting rights through local nominees. But the amendments approved by the Cabinet on Jan 9 would place new restrictions on overseas investments in companies and the use of local nominees to circumvent limits. Foreign investors and their nominees would be required to reduce their excess holdings within two years and one year, respectively.

Peter van Haren, JFCCT chairman, welcomed the government’s assurances, but added that he was not sure if the proposed new foreign business law would be compliant with the World Trade Organization’s rules.

He said his organization would carefully study the new proposed rules and put together a list of recommendations to be submitted to the prime minister and his economic ministers within the next two weeks.

Source: TNA - 25 January 2007

[ColPyat]

Foreign investors still wary of proposed revisions to investment laws

BANGKOK, Jan 25 (TNA) – The Thai government’s assurance Wednesday that Bangkok was not retreating from the global economy despite planned revisions to investment laws was received with caution by foreign business executives.

Somewhat encouraging that at least the Thai media starts finding its teeth again, and not just sycophantly follows the line of the government. Appearantly also the farang business man that was interviewed yesterday after the speach was interviewed again here on TV, saying that investment was really down, and that there is presently very little confidence in the government's changes in law.

So far, the response from officials here on foreign criticism on 'sufficiency economy' and the new business regulations was that maybe we foreigners did not really understand even though PM Gen. Surayudh is trying to explain this patiently.

Problem is, we understand perfectly, but many of us simply do not buy into it.

[younghusband]

As an aside,I suppose I must be one of the relatively few forum members who attended the the PM Tanin Kraivixien's talk to the jont chambers.It must have been some time in early 1977.As with Surayud's talk there was the same slightly mindless gushing response afterwards from the chamber members, eg what a gentleman, what a wonderful sense of humour, how incisive and intelligent,isn't all this left wing propaganda about him rather over done etc etc.Tanin was (and is) very much a stalwart of the Bangkok elite,privy councillor, close to the apex of the Bangkok power complex.He was deposed by Kriangsak later that year but without much loss of status where it matters.

Now outside Thailand he is a forgotten figure.I thought he was rather impressive though an intellectual rather than a politician.Certainly right wing but a decent man.Surayud has more charm and I suspect lasting power.

[Plus]

It's not the sufficience economy that scares foreign businessmen, I believe they don't really give a ######, it's stupid capital control measures coupled with unclear FBA amendmends and pervasive incompetence. They should have sacked Pridiyathorn back in December instead of allowing him to screw the government again with FBA.

[hammered]

It's not the sufficience economy that scares foreign businessmen, I believe they don't really give a ######, it's stupid capital control measures coupled with unclear FBA amendmends and pervasive incompetence. They should have sacked Pridiyathorn back in December instead of allowing him to screw the government again with FBA.

I dont think that just stability should be underestimated either. Thailand has had little stability since 2005. Neither an elongation of military rule into next year or a return of Mr. T would do much on this front. Thailand needs to move forward and get a stable elected government in place.

[ColPyat]

It's not the sufficience economy that scares foreign businessmen, I believe they don't really give a ######, it's stupid capital control measures coupled with unclear FBA amendmends and pervasive incompetence. They should have sacked Pridiyathorn back in December instead of allowing him to screw the government again with FBA.

Which all goes under the widely interpreted cloak of 'sufficiency economy', because of a utter lack of coherent definition other than mostly religious based new age waffle (the economist) ...

[Plus]

Capital controls had nothing to do with sufficiency economy, and neither does FBA amendment, it was initiated under Thaksin, btw.

[sriracha john]

"It seemed to be very well received by all."

- Response during tonight's online chat by Ralph Boyce, U.S. Ambassador to the Kingdom of Thailand

Funny.

Right after the speach was televised on Channel 11 one foreign attandent who spoke very well Thai was interviewed, and his statement was somewhat more cautious, saying that things are not that clear at all yet regarding investment in the future (which corresponds to the statement by the TV poster here who has been attending this speach in person), as opposed to a Thai burocrat who said that things are very clear now.

Very reassuring that at least the speach at the Joint Foreign Chambers of Commerce has at least made things clear for the Thai Burocrats in attendence.

Actually, he's not a Thai burocrat, he is, as his title says, the American Ambassador. It's not surprising that since there were dozens and dozens of 700 people in attendance at the speach, that different reactions occur. There are not too many speaches given anywhere where everyone in attendance agrees completely with one opinion.

Also, the quote provided by the non-Thai burocrat, American Ambassador didn't say things are very clear now, he said the PM had an opportunity during his speach to clarify things. The two are quite different.

I'm not sure how many Thai Burocrats attended the speach, but the American Ambassador seemed to come away from it with a positive reaction and he spoke that in very well English.

Post amended to reflect the actual number. Television news I saw didn't show any wide shots of the gathering, only a few close-in shots of the tables, so it didn't appear that there were hundreds in attendance.

[wintermute]

So far, the response from officials here on foreign criticism on 'sufficiency economy' and the new business regulations was that maybe we foreigners did not really understand even though PM Gen. Surayudh is trying to explain this patiently.

Problem is, we understand perfectly, but many of us simply do not buy into it.

This is what I think annoys people the most about this regime. They are incredibly arrogant and shortsighted in their policy making and then insinuate that it's everyone else who doesn't understand. Of course they ignore their country's OWN experts as well such as the numerous economists at Chula, investment bankers, and financial analysts who said that the amended FBA and currency controls would be a very bad idea.

If they believe Thai people are so enlightened and can never do wrong then why is Thailand STILL a developing world country mired in poor education, poverty, and immense social problems? Of course it's the foreigners doing all of this.. hel_l with the tone that they use to talk to other countries and their own people you would think that Thailand is a global superpower. Utterly lame and pathetic. Thaksin may have been a corrupt windbag but at least he was a somewhat pragmatic businessman who knew not to piss off foreign investors or institute archaic anti-foreigner resolutions.

Edited January 25, 2007 by wintermute

[Siripon]

Foreign investors still wary of proposed revisions to investment laws

BANGKOK, Jan 25 (TNA) – The Thai government’s assurance Wednesday that Bangkok was not retreating from the global economy despite planned revisions to investment laws was received with caution by foreign business executives.

Somewhat encouraging that at least the Thai media starts finding its teeth again, and not just sycophantly follows the line of the government. Appearantly also the farang business man that was interviewed yesterday after the speach was interviewed again here on TV, saying that investment was really down, and that there is presently very little confidence in the government's changes in law.

So far, the response from officials here on foreign criticism on 'sufficiency economy' and the new business regulations was that maybe we foreigners did not really understand even though PM Gen. Surayudh is trying to explain this patiently.

Problem is, we understand perfectly, but many of us simply do not buy into it.

The Thai media never lost their teeth, what are you talking about?

They have analysed and criticised the government almost from day one.

To call them sycophantic is a gross slur, especially from someone who can't read Thai.