george Posted August 8, 2007 Share Posted August 8, 2007 Parliament to approve tighter foreign ownership rules BANGKOK: -- Parliament is expected to approve on Wednesday a law that will tighten limits on foreign ownership of businesses related to national security, culture, national resources and the environment. The new law would also cover media, real estate, farming and antiques and protected industries where locals are not ready to compete with foreigners, such as rice milling, accounting and legal services, hotels (excluding hotel management) and retailers. -- The Nation Link to comment Share on other sites More sharing options...
womble Posted August 8, 2007 Share Posted August 8, 2007 Keep an eye on the stock market. Link to comment Share on other sites More sharing options...
A_Traveller Posted August 8, 2007 Share Posted August 8, 2007 Parliament is expected to approve on Wednesday a law that will tighten limits on foreign ownership of businesses related to national security, culture, national resources and the environment. and everything else.Regards Link to comment Share on other sites More sharing options...
A_Traveller Posted August 8, 2007 Share Posted August 8, 2007 Just to add to the above, if there is no change from the last draft I saw, then foreign business is defined as now by 49/51% split in shares but now also in voting rights which must follow the 49/51% maxima. Further list 3 is changed so that retail businesses are defined irrespective of capital as are wholesale activities. Regards Link to comment Share on other sites More sharing options...
hammered Posted August 8, 2007 Share Posted August 8, 2007 Just to add to the above, if there is no change from the last draft I saw, then foreign business is defined as now by 49/51% split in shares but now also in voting rights which must follow the 49/51% maxima. Further list 3 is changed so that retail businesses are defined irrespective of capital as are wholesale activities.Regards Thailand outlook TV website has a report confirming the 49/51 voting rights ammendment. They do however mention that a company with more than 49% foreign shares could register with the commerce ministry as a foreign management controlled company. Link to comment Share on other sites More sharing options...
bruceboy Posted August 8, 2007 Share Posted August 8, 2007 Thailand coming close to a state of total crisis. Link to comment Share on other sites More sharing options...
chiang mai Posted August 8, 2007 Share Posted August 8, 2007 So Thailand is not yet ready to compete with foriegners in the areas of law and accounting, who'ld have thunk it. Interesting that they are also not yet ready to compete in the area of rice milling - even more strange that last one. Link to comment Share on other sites More sharing options...
southbot Posted August 8, 2007 Share Posted August 8, 2007 ######, all those years I spent studying rice milling. Wasted, just wasted time. I cry. Boo hoo. ( sorry, it is the most intelligent comment that I can make regarding "foreign expertise" and whether or not Thailand needs it ) Link to comment Share on other sites More sharing options...
A_Traveller Posted August 8, 2007 Share Posted August 8, 2007 (edited) Well if you were the family which effectively manages the cartel then you probably wouldn't want efficient competition either, so you would 'lobby' like hades to keep your protection. Regards /edit PS The real question is will this version of the act be honoured, or as was the case with the 1999 act, be to a large degree, ignored or subverted with willing cooperation of both Thai lawyers and the bureaucracy itself?// Edited August 8, 2007 by A_Traveller Link to comment Share on other sites More sharing options...
Mai Krap Posted August 8, 2007 Share Posted August 8, 2007 Same Same! Link to comment Share on other sites More sharing options...
mouse Posted August 8, 2007 Share Posted August 8, 2007 Does this impose any regulation or requirments on my American-Thai Amity Company? Does anyone know? Sunbelt??? Link to comment Share on other sites More sharing options...
midas Posted August 8, 2007 Share Posted August 8, 2007 Just to add to the above, if there is no change from the last draft I saw, then foreign business is defined as now by 49/51% split in shares but now also in voting rights which must follow the 49/51% maxima. Further list 3 is changed so that retail businesses are defined irrespective of capital as are wholesale activities.Regards and with it in my opinion they will kiss goodbye to any remaining attraction in my book to owning a business in this country jolly good luck to them - I really believed in view of the softening of the economy they would back down even a bit So now there's definitely more incentive to start a business in places like Cambodia, Vietnam - anywhere with sensible laws ! Link to comment Share on other sites More sharing options...
A_Traveller Posted August 8, 2007 Share Posted August 8, 2007 Does this impose any regulation or requirments on my American-Thai Amity Company? Does anyone know? Sunbelt??? Position as far as I'm aware is that these changes are for Foreign business, not those covered by the Amity Treaty. Regards Link to comment Share on other sites More sharing options...
nick2k Posted August 8, 2007 Share Posted August 8, 2007 protectionism. as blunt as it gets. globalization is ok if you have level playing field. but this is not fair. america should take back all the factories, bring the jobs back to america for americans - like it should be. Link to comment Share on other sites More sharing options...
stoneman Posted August 8, 2007 Share Posted August 8, 2007 I also own an Amity company and I contacted the commerce section at the Embassy and asked this same question. The response was that, at this time, Amity companies are exempt. They also pointed out that they had no way to predict the future. Link to comment Share on other sites More sharing options...
Gnarpjohan Posted August 8, 2007 Share Posted August 8, 2007 Also discussed here: http://www.thaivisa.com/forum/index.php?showtopic=134646 Link to comment Share on other sites More sharing options...
ovenman Posted August 8, 2007 Share Posted August 8, 2007 I noticed that the offshore value of the baht dropped a bit today. Any correlation? Link to comment Share on other sites More sharing options...
midas Posted August 8, 2007 Share Posted August 8, 2007 does anyone elves feel absolutely sick of all this ? Yesterday I was told Thai's don't normally like farangs trying to speak Thai because when we do it doesn't sound nice that's why it's taken me so long to learn the little I do speak -they don't even give us a fair chance on this issue - when I would never in my wildest dreams ever humiliate a Thai person for speaking poor English -it is such a one-way streets in this country Link to comment Share on other sites More sharing options...
splitlid Posted August 8, 2007 Share Posted August 8, 2007 BANGKOK, Aug 8 (TNA) – The government has withdrawn Wednesday the controversial Foreign Business Bill from the final stretch of the law-making process to incorporate more amendments suggested by law-makers. The National Legislative Assembly, the law-making body, met for the third reading of the draft. Following objections from the minority wing, Commerce Minister Krirkkrai Jirapaet decided to withdraw the bill from the process in order to prevent it from being killed. A group of NLA members proposed amendments to the definition of “foreign” voting rights and control. These last two issues, they argued, were more important substantively in determining whether a company was “foreign.” Somchai Sakulsurarat, an NLA member, who opposed the version of the bill being debated on Wednesday argued that it should address the management control issue in line with recommendations by the Council of State. “I disagreed with claims that having tight definition of management control would undermine foreign investor’s confidence. We are trying to avoid recurrence of such charade as the Kularbkaew case,” he said, referring to the proxy company set up to facilitate share transactions between Shin Corporation and Singapore’s Temasek Holdings. He said the draft proposed by the government would fail to close such gaps as foreign entities could come up with many other ways to exercise management control. Mr Somchai was adamant that the definition of “foreigner” he wanted to see would not deter “honest foreign investors” who chose to do business in Thailand for good reasons. After the majority of the NLA voted 76 to 64 for amendments, Commerce Minister Krikkrai withdrew the bill for improvement. The NLA thereafter voted for the bill to be returned for further reading after amendment. (TNA)-E007 seems they need to talk about it some more. Link to comment Share on other sites More sharing options...
Netfan Posted August 8, 2007 Share Posted August 8, 2007 A group of NLA members proposed amendments to the definition of “foreign” voting rights and control. These last two issues, they argued, were more important substantively in determining whether a company was “foreign.” Somchai Sakulsurarat, an NLA member, who opposed the version of the bill being debated on Wednesday argued that it should address the management control issue in line with recommendations by the Council of State. “I disagreed with claims that having tight definition of management control would undermine foreign investor’s confidence. We are trying to avoid recurrence of such charade as the Kularbkaew case,” he said, referring to the proxy company set up to facilitate share transactions between Shin Corporation and Singapore’s Temasek Holdings. He said the draft proposed by the government would fail to close such gaps as foreign entities could come up with many other ways to exercise management control. Mr Somchai was adamant that the definition of “foreigner” he wanted to see would not deter “honest foreign investors” who chose to do business in Thailand for good reasons. seems they need to talk about it some more. Unless i am reading this wrong, it sounds like its not strict enough for those who are against it? Link to comment Share on other sites More sharing options...
A_Traveller Posted August 8, 2007 Share Posted August 8, 2007 Unless i am reading this wrong, it sounds like its not strict enough for those who are against it? That's my understanding too, have been told it was a shambles in the house, with tempers running high. Regards Link to comment Share on other sites More sharing options...
dog412 Posted August 8, 2007 Share Posted August 8, 2007 Mr Somchai was adamant that the definition of “foreigner” he wanted to see would not deter “honest foreign investors” who chose to do business in Thailand for good reasons. i'll bet this guy is as honest as his business practice. looking to compete only with HONEST foreigners, this guy should be banished from any FOREIGN business outside his own private fiefdom, and we know how honest that is in areas of his control. Link to comment Share on other sites More sharing options...
LaoPo Posted August 8, 2007 Share Posted August 8, 2007 With credit to A_Traveller's post elsewhere on 'Jobs, economy..etc.': http://nationmultimedia.com/2007/08/08/hea...es_30044306.php FBA amendment bill abruptly withdrawn ""Commerce Minister Krirkkrai Jirapaet asked the National Legislative Assembly to withdraw the bill in the last minutes of a heated NLA session after his ministry lost in its attempt to push through its version of the bill, considered more lenient than that of an NLA committee. Krirkkrai was surprised and strongly disappointed as hardline NLA members aggressively pushed for a tougher law. He decided to ask NLA to withdraw the bill for further revisions after a slight majority of NLA members voted in favour of the proposal made by a group of NLA members to extend the management control which would impose stringten control on the nominee issue in the bill by 7664." and: Even with the government's softer version, the proposed amendment has become a major point of contention, largely criticized by foreign investors familiar with lax regulations while doing business here. There are some very strong forces behind the scenes....and the -Interim- Government can't do anything about it; puppets on a string... LaoPo Link to comment Share on other sites More sharing options...
soundman Posted August 9, 2007 Share Posted August 9, 2007 Tighter curbs on foreign business Investors predicted to vote with their feet MONGKOL BANGPRAPA PHUSADEE ARUNMAS Foreign investor confidence is expected to nosedive after the National Legislative Assembly (NLA) yesterday approved significantly tighter restrictions on foreign businesses operating in Thailand. The NLA, in a surprise move, rebelled against the government draft of the Foreign Business Act (FBA) and instead approved by a 76 to 64 vote tougher amendments that significantly expand the definition of foreign companies under business restrictions. The move, a clear setback to Commerce Minister Krirkkrai Jirapaet and the government, could have huge implications for the Thai economy and future foreign investment, analysts said. The FBA is the legal framework that defines what sectors are prohibited from foreign businesses operating in Thailand. The current FBA defines a company as foreign if 50% or more of its shares are held by foreigners. The government draft would expand the definition to include firms where 50% or more of the voting rights are held by foreigners. Story Here Soundman. Link to comment Share on other sites More sharing options...
The Vulcan Posted August 9, 2007 Share Posted August 9, 2007 And today we hear that it's all been thrown out due to the controversial inclusion of the "controlling management" clause. Wrap ya mind around that one! Link to comment Share on other sites More sharing options...
nick2k Posted August 9, 2007 Share Posted August 9, 2007 after the law finally gets approval, I see all the foreign companies being confiscated. just like chavez did. ..for the benefit of the people. in this case, for the thai people. carrefour, lotus, big C, ford, ibm, seagate, dtac, and any other foreign company will be taken over by the government. the compulsory licenses were just the beginning. this governments true colors are coming out. Link to comment Share on other sites More sharing options...
midas Posted August 9, 2007 Share Posted August 9, 2007 after the law finally gets approval, I see all the foreign companies being confiscated. just like chavez did. ..for the benefit of the people. in this case, for the thai people.carrefour, lotus, big C, ford, ibm, seagate, dtac, and any other foreign company will be taken over by the government. the compulsory licenses were just the beginning. this governments true colors are coming out. No no no - I could NEVER believe they would be that short sighted They could lose APEC membership for doing soemthing like that ! Link to comment Share on other sites More sharing options...
george Posted August 9, 2007 Author Share Posted August 9, 2007 This topic has changed, and continues here: http://www.thaivisa.com/forum/index.php?showtopic=135266 Link to comment Share on other sites More sharing options...
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