Amended Foreign Business Act May Have Negative Impact

[george]

Amended Foreign Business Act may have negative impact, says KRC

BANGKOK: -- Foreign investor concerns over Thailand's amended Foreign Business Act may affect confidence and carry a negative impact in long-term, according to a report issued by Kasikorn Research Centre.

The KRC report said future foreign investment in this country may be affected as foreign investors do not have full confidence on details and could interpret the revised act in a negative way. The revised version

of the act could also erode foreign investor confidence on the Thai government's economic policy.

On April 10, the Cabinet endorsed the amendment to the Foreign Business Act which allowed companies engaged in restricted business sectors a grace period of three years in compliance with a limit of 49.9 per cent on foreign shareholders' voting rights in Thai companies from two years earlier.

Nominee shareholders are subject to higher penalties to prevent wrongdoing and to boost good governance in business operations.

Prasit Kovilaikool, minister attached to the Prime Minister's Office, has said that the interim government had forwarded the amendment to the National Legislative Assembly and deliberations could take place this

week.

The KRC said the government needed to urgently explain the revised amendment of foreign investment and to also issue necessary measures to shore up foreign investor confidence.

Telecom and property listed firms whose major shares are held by transnational companies through nominees are expected to be especially affected by the amendment, according to the report.

The Stock Exchange of Thailand has projected that about 15 listed firms would be initially affected by the revised foreign business amendment.

--TNA 2007-04-15

[bkkandrew]

Amended Foreign Business Act may have negative impact, says KRC

BANGKOK: -- Foreign investor concerns over Thailand's amended Foreign Business Act may affect confidence and carry a negative impact in long-term, according to a report issued by Kasikorn Research Centre.

The KRC report said future foreign investment in this country may be affected as foreign investors do not have full confidence on details and could interpret the revised act in a negative way. The revised version

of the act could also erode foreign investor confidence on the Thai government's economic policy.

On April 10, the Cabinet endorsed the amendment to the Foreign Business Act which allowed companies engaged in restricted business sectors a grace period of three years in compliance with a limit of 49.9 per cent on foreign shareholders' voting rights in Thai companies from two years earlier.

Nominee shareholders are subject to higher penalties to prevent wrongdoing and to boost good governance in business operations.

Prasit Kovilaikool, minister attached to the Prime Minister's Office, has said that the interim government had forwarded the amendment to the National Legislative Assembly and deliberations could take place this

week.

The KRC said the government needed to urgently explain the revised amendment of foreign investment and to also issue necessary measures to shore up foreign investor confidence.

Telecom and property listed firms whose major shares are held by transnational companies through nominees are expected to be especially affected by the amendment, according to the report.

The Stock Exchange of Thailand has projected that about 15 listed firms would be initially affected by the revised foreign business amendment.

--TNA 2007-04-15

Amended Foreign Business Act may have negative impact, says KRC

This could be filed in the same catagory as "Pope is Catholic shock" and "bears sometimes don't use public conveniences expose"