Foreign Business Act Stopped

[basjke]

Foreign Business Act stopped

BANGKOK: -- Thailand's army-appointed government withdrew its draft Foreign Business Act on Wednesday after parliament inserted a clause at the last minute preventing foreigners from having majority management control.

Diplomats have said the new law, which already tightened restrictions on new foreign investment by defining ownership in terms of voting rights instead of shareholding, would trigger a challenge at the World Trade Organisation.

Despite this, analysts say the goverment's draft left scope for foreigners to control the companies in which they invested by having a majority presence on the board -- a loophole the last-minute addition was designed to close.

Previously, foreigners investing in many Thai sectors were limited only to holding 49 percent of equity, but could still exercise control of the company by having preferential voting rights.

It is not know when the draft law will be resubmitted to the parliament, which was appointed by the army after a military coup last September against Prime Minister Thaksin Shinawatra.

The last minute insertion of clause on management control was voted through by 76 votes to 64.

The government then withdrew the bill, saying it would have to make it all consistent with the clause on management control -- which foreign businessmen say smacks of economic nationalism.

At face value, revision of the law stemmed from probes into Thaksin's business dealings, most notably his family's $1.9 billion sale of its controlling stake in the Shin Corp telecoms empire to Singapore.

However, it is also about Bangkok's old business elite -- many of whom supported the September coup against Thaksin -- getting payback for having to sell their family firms to foreigners after the 1997 Asian financial crisis, analysts say.

--Agencies 2007-08-09

Sorry,can't find the right words for it.Anyway they would be not allowed to be posted on this forum.

Edited August 9, 2007 by basjke

[Charma]

These xenophobic sentiments cut across all political divides. This law was only pulled at the last minute because so many of the NLA wanted MORE restrictions. Any future compromise with the junta is likely to add these! The vast majority of the voting population will not understand the implication of these measures, but will certainly be susceptible to the time honoured election tradition of "blame the foreigner". Because of this, I think it is very unlikely that any future election will change the direction on these matters. If things do not improve economically, anti-foreign policies may become even more prevalent. Certainly a time to look at company assets and be ready for changes!

[ludosiam]

Foreign business act should have been in place 50 years ago when all the Chinese migrants came over here to set up their businesses They in general had been welcomed by Thailand, yet now the offspring of these people try to slam the doors for other competitors.

[basjke]

At this time usd/thb 34.02 Set index -2,12 pct.Could this be related to the good news of today?

[jumnien]

Things are looking brighter here in the LOS!!!

[joskydive]

At this time usd/thb 34.02 Set index -2,12 pct.Could this be related to the good news of today?

Just checked Yahoo finance and its still at usd/thb 30.

[ludosiam]

At this time usd/thb 34.02 Set index -2,12 pct.Could this be related to the good news of today?

Just checked Yahoo finance and its still at usd/thb 30.

That's the offshore rate. And also offshore the Baht is traded a little lower now, around 30.6 at the moment

[xbusman]

Kids kids kids, relax a little bit here.

For review, I want to post the first rule of investing in Thailand so it is fresh in our little minds with such a complete lack of memory that sometimes I shudder.

THE FIRST RULE OF INVESTING IN THAILAND

NEVER NEVER NEVER EVER INVEST MORE MONEY IN THAILAND THAN YOU ARE WILLING TO WALK AWAY FROM

Now why does every old timer I talk to eventually bring this point up. This is a third world country without rules of law. Even if such a law was passed, it would be passed to provide an opportunity for more skimming the profits through corruption and graft. AND GUESS WHAT, it has not passed yet! The cooler heads of the government beauracracy pulled the plug when faced with the idiocy espoused by the NLA regime which like every military in the world bar none is entirely clueless on real life and what it takes to make a society thrive and prosper.

So, lets recap.

First, all the investors in thailand are either smart enough to only invest what they could smoke without damaging their balance sheet, or they are stupid enough to put their life here and probably deserve whatever comes down the pipe as they would have gotten eaten in some other market anyway.

The real investors will weigh the corruption tax no matter what laws are passed or not passed. If and when it becomes too expensive, they will walk away and never look back. Life will go on.

Next, this ridiculous law will be no more stringently enforced than most other laws up to and including murder. If you are the son of a pooyai and you get a wild urge to pull a gun and murder a decorated police officer in front of hundreds of witnesses, you can count on walking away. What makes you think the FBA will be any different. The old one was blatantly abused by everyone, including our ex prime minister. Why would the new one be more enforced or followed.

If you have not noticed, we are being managed by the military. Take a moment and think of all the people you have run across in your life that were career military from any place, any culture. That is what should worry you, not the FBA. Military people think inside very straight lines with black and white outlines. They define things in victory and defeat without regards to consequences. Of course they would try something like this, we can expect much worse if they stay in power much longer.

Meanwhile, the technocrats are struggling for survival and have managed to throw water on this fire for the time being. Government people think of things in massive tones of grey. One thing they do understand is that no matter how good an idea is, someone will hate it and work very hard to pull them out of their secure safe low paid hole and stomp them for it. So governments work very hard at doing nothing and rocking no boats. The generals terrified the technocrats regarding the potential ramifications on this one and they actually stood up to the military, can you imagine the guts it took to do that.

And that brings us to the last point. Another tidbit I hear from old timers over and over. If you dont like things in Thailand, wait a bit, it will change. Its a society, legal system, military system, in constant flux. Think about the massive changes in just the last three years. Dont like the FBA, wait a bit, it will change again. THATS WHY, no sane investor would put more here than they could walk away from. Investors like consistency and are risk adverse.

Thanks to some brave technocrats, the FBA is shelved for a while. Something new and bizarre will take its place tomorrow. Maybe it might come back, maybe not.

I am more worried about the long term history of SE asia and the really bad things that can develop here if given an opportunity. The more rhetoric I hear about the sufficiency economy the more it reminds me of goofy khmer rouge theories which was allowed (under military people) to spiral out of control into one of the worst blood baths in history. It always starts with curtains drawn, removing and repressing the press, and developing a closed system to insure "happiness".

Hang in there, with any luck the beaurocrats will take over again this year and a whole new bunch of weirdness will start afresh.

[Thaising]

Move to push for tougher FBA amendment worries SET chief

BANGKOK, Aug 9 (TNA) – The move by some members of the National Legislative Assembly to push for a tougher definition of management control in the proposed amendment to the Foreign Business Act could shaken foreign investors’ confidence, according to the Stock Exchange of Thailand president Patareeya Benjapolchai.

“Should there be an extension of the power to control management via shareholding and voting rights in the original definition to control only share and voting rights, it will confuse and worry foreign investors and businessmen,” she said.

Commerce Minister Krirk-krai Jirapaet on Wednesday withdrew the controversial amendments to FBA from the final round of the heated NLA session following a failure to push through the ministry’s version since some NLA members aggressively pushed for a tougher law.

Santi Vilassakdanont, chairman of the Federation of Thai Industries, said he was concerned the proposed change by NLA in the original definition of foreign voting rights and control would affect investment decision by new foreign investors.

They might change their mind and turn to invest in other countries since the controversial amendments were ambiguous and persistent.

Mr. Santi said the Commerce Ministry must accelerate clarifying the issue and pushing through the amendments within the term of the incumbent government.

Otherwise, some foreign investors would withdraw their investment from Thailand, which could affect the country’s overall economy, he said. (TNA)

[esbobes]

My wife read an article in the Thai language newspaper The Manager which contained quotes from some of those pushing for the more restrictive FBA. Among those gems of wisdom, "No country on earth will let a foreigner come in and set up a business and take that country's nationality (citizenship)." Apparently he never studied the economies of other countries. Apparently he isn't aware that Thai nationals have immigrated to the US and other countries and opened businesses.

Thai nationals have also immigrated to many Western countries. Canada will even welcome foreign nationals nationals including Thais who have no job waiting for them if they score high enough on Canada's immigration point system. Canada's population is a little more than half the population of Thailand. Yet, unlike the xenophobes in Thailand, the Canadian government doesn't fear that these new immigrants will dilute Canada's sovereignty or diminish opportunity for native born Canadians.

The US has long allowed foreign nationals to immigrate and become US citizens. Thais are included in this immigrant population. In one part of the US, East Hollywood, California, the government has honored the business development by these Thai "foreigners" by officially renaming the business district they revitalized "Thai Town". The government is also providing grants to help the community attract more business. That would never happen to foreigners in Thailand!

Thais are not the only immigrants who open businesses in the US. Citizens of every country on earth have come and continue to come to the US to open business. Most remain small but help the country when their owners employ Americans either directly or by purchasing goods and services from other firms owned by native born Americans. The businesses also pay taxes which support schools, the building and maintenance of roads, police and fire services to name a few. Some firms founded by immigrants grow into giant enterprises. Computer Associates, Google and Yahoo are some that readily come to mind. Charles Wang, an immigrant from Shanghai, China Was a co-founder of Computer Associates. Sergey Brin one of the co-founders of Google was born in Moscow, Russia and immigrated to the US with his parents. Jerry Yang (Chih-Yuan), one of the two founders of Yahoo and Yahoo's current CEO was born in Taipei, Taiwan and immigrated to the US with his widowed mother. Under the law being pushed by the enlightened members of the NLA, a business like Yahoo were it to develop in Thailand would be classified as foreign since the odds would be greatly against a foreign national like Jerry Yang becoming a Thai citizen or even being allowed to remain in Thailand during the business development phase.

All of the self made, foreign born, wealthy Americans mentioned have given back to the country that gave them their opportunity. They made gifts such as donations to Universities, Children's foundations and Civic centers. The two founders of Google of which Sergey Brin is one, have actually hired a someone to manage their ongoing and sizable charitable donations.

Foreign born business owners have contributed in a major way to America's economic growth through the years too. Igor Sikorsky, inventor of the first successful helicopters and founder of Sikorsky Aero Engineering Company now part of United Technologies was born in the Ukraine and immigrated to the US as a adult. Alexander Graham Bell, inventor of the telephone was born in Scotland and immigrated to the US. Werner Von Braun, who led the US in the development of the space program was born in Germany. At great risk to himself and the engineers who joined him, he fled through the battle lines in order to surrender to the Americans at the end of the second world war. He chose to remain in America and to take American citizenship. Albert Einstein, who needs no introduction immigrated to America and adopted that country as his home. Imagine trying to do that in Thailand. Edwards Teller known as the father of the atom bomb was born in Hungary. He too chose to make America his home. I could write a book on all the American Nobel laureates who immigrated to the US and adopted the country as their won.

Thailand's xenophobia is exactly what is holding Thailand back though the chief proponents would have you believe otherwise. Vietnam was recently recognized by the World Bank for its success in reducing poverty. In 1990 two thirds of Vietnam's citizens were living in poverty. Today the number has been reduced to less than one third which is far better than Thailand's track record. Instead of restricting foreign investment Vietnam embraced it by removing restrictions on foreign investment and management. Vietnam also provided educational opportunity for its poorest citizens that has enabled that country to make a quantum lead ahead of Thailand in high technology services. While Vietnam progresses, Thailand regresses. Will the powers that be in Thailand wake up and move to help the country develop? Thus far that appears doubtful.

http://www.bangkokpost.com/breaking_news/b...s.php?id=120686

http://www.vietnamembassy-usa.org/news/sto...=20031119172848

http://www.latimes.com/news/local/la-me-th...=la-home-center

America takes advantge of the poor that come to America. They use them for cheap labor. and keep them poor The Poor want to leave America but cann't afford a high price plane ticket

[Arkady]

The NLA is nothing more thaqn a freak show of incompetent anti Thaksin people. They do not care if the economy suffers. After all Sufficiency economy is the buzzword that is parroted by this politburo like bunch of cowboys.

In the sufficiency economy Thai style it means that the poor, mus be happy that they are poor, the rich including the supporters of this theory are allowed to drive their Benzes and pay minimum wages to their employees if they do pay this at all. It is shameless that the politburo of the Thai junta dares to amend laws at all. they are supposed to look after the shop, while the shopkeeper is temporarily away (in this case in England). They do not have any right whatsoever to propose laws, they are after all no chosen, unless you believe of course that Sonthi and his democracy rapists would get more than 10% of the popular vote in an election.

By the way remind your Thai friends that they are only allowed to vote YES next week, so they can better stay away.

I don't agree with the implication that these problems wouldn't have occurred if Thaksin was still in charge. He caused the initial problem by selling his shares in Shin Corp to Temasek knowing they were using a structure that was already illegal under the existing FBA. The move to amend the FBA was started under Thaksin who couldn't have cared less that, as prime minister, he had aided and abetted an illegal transaction, and didn't care if his Singaporean friends got into trouble later, even at the hands of his own government. Also remember that the crack down on foreigners owning land, which gave teeth to the reactionaries' arguments on the FBA, was started under Thaksin. Having said that I do agree that the elite doesn't care about the poor and this is traditional and goes for Thaksin's cronies and former governements as well as the present bunch. Many look down the poor as untouchables as if they were a different race, which essentially they are since the elite is largely of Chinese origin. The worst abuse of the poor by successive governments is the denial of acceptable quality public education which should be a priority, if Thailand is going to compete in higher value added industries now that the sweat shops are too expensive. Parroting their distorted view of a sufficiency economy as an excuse for doing nothing to improve education compounds the problem. The Education Ministry is used as a piggy bank for corrupt politicians and civil servants and the elite is terrified of the poor having enough education to challenge the status quo and demand a real democracy rather than the pathetic vote buying structure that passes for one in Thailand.

[TAWP]

America takes advantge of the poor that come to America. They use them for cheap labor. and keep them poor The Poor want to leave America but cann't afford a high price plane ticket

Yes, since walking across the border to Mexico costs so much.

Please...

[edwinchester]

Remember the PM's words when he took office:

"I will not focus on GDP as the previous governments, but I will adhere to the sufficiency economy advocated by the King. I will focus on the happiness of the people rather than the GDP."

It's funny isnt it how some of the strongest supporters of the 'sufficiency economy' are those that lead a lifestyle just about as far removed from it as you can get.

'Do as I say' rather than 'do as I do'.

Just imagine the respect someone in office would get if, just once, they were to lead by example and not self interest.

[maipleur]

This is clearly evidence that people ARE getting stupider!

Fancy being more concerned about protecting the power of a business elite than in the good of your country. I mean, this place already has pretty much the lowest growth rate in Asia, and they want to discourage foreign investors? How stupid is that.

Bring on the elections ASAP. Meanwhile, the govt. should do nothing on this issue.

Actually, the government should remember that it is a "Caretaker" government and stop trying to do things it is not qualified for. All we have seen since they came to power is one stupid blunder after the other. It would be funny if it weren't so pathetic.

When will these army people realize they are only qualified for guard duty...not for running a country? Sheesh!

This issue is far from settled, but while it is now in limbo we have some breathing space. But if the new government (if we ever get one!) revives this crazy legislation Thailand will continue to slide to the bottom of the heap. What a shame. Before the coup the economy was in good shape. It didn't take the men in green long to destroy that, did it?

I agree with you Sir.. simply put and hit the target!

[dominique355]

Why don't they pretend they are intelligent and make laws that benefit their social contract with the nation instead of drag in into the 19th century? They really don't like the idea of an economy in Thailand do they? Their laws seemed to be backwards--although they are a delightful people.

In fact, the late 19th century and the early 20th century, until WW I, was a period of great economic freedom. Some call it the first true globalisation. There were no such things as nationalistic barriers (because there were no nations, just empires) and people, goods, money and services could flow freely around the globe.

This kind of freedom has vanished after WW I and even more after WW II. Only today are we trying to re-establish this freedom. However, some people have not really understood that freedom brings prosperity. Restricting economic freedom, especially in Thailand, only brings more corruption.

[pascharay]

Hopefully the govt will adopt a policy of masterly inaction and do nothing until after the elections, when reality might revive.

Governments react to the now rather then the future, which requires planning for creative inaction.

The main problem for Thailand is that self-intersts are motivated in preserving ancient rights of dominating the economy regardless of the harm caused to investors, farmers, or buesiness. Thaksin for all his faults was loved by the common man partially for his populist policies, but mostly because his achievement of wealth was unusual for someone outside the traditional power structure.

This country's elite is not interested in making money, but suppressing economic freedom for anyone outside their ranks thereby reinforcing their position for the years as poo yai

Everything else is unimportant

[chownah]

Hopefully the govt will adopt a policy of masterly inaction and do nothing until after the elections, when reality might revive.

Governments react to the now rather then the future, which requires planning for creative inaction.

The main problem for Thailand is that self-intersts are motivated in preserving ancient rights of dominating the economy regardless of the harm caused to investors, farmers, or buesiness. Thaksin for all his faults was loved by the common man partially for his populist policies, but mostly because his achievement of wealth was unusual for someone outside the traditional power structure.

This country's elite is not interested in making money, but suppressing economic freedom for anyone outside their ranks thereby reinforcing their position for the years as poo yai

Everything else is unimportant

Good post...and I'll add that the country's elite functions from the perspective of "the poorer the common people are the richer I am by comparison and the loftier is my social status" which explains why they have done such a poor job of developing the educational system....and Toxin was functioning from the perspective "the more money the common people have the more money I can make from their spending habbits" which is the typical modern capitalist point of view.....and why he was channeling more funds and effort into education than anyone before him.

I sure wish there was another alternative available.

[Martin]

Last January, the PM indicated that he is aware of the need for the alternative (government of the people, by the people, on behalf of the people, for the benefit of all the people), which 'chownah' mentions. And aware of the enemies thereof, that 'chownah' describes.

Elsewhere in his speech to the Ambassadors and the JFCCT, he said:

"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."

OK, he is a retired General, and a politician, so the cynics will doubly disbelieve that he could have been sincere. However.....

[pentri]

Well, be this all as it is, the bottom-line is wheather one should stay or leave. If you are in a good to great financial position, why leave and why complain? Just enjoy. The real problems are for the Thai people to face.

[Ned]

These "deeply entrenched vested interests" the PM was talking about referred to the Thaksin mob, the new money group, and not the old feudalist elite who are now calling the shots. This 'govt' is working for them and them only.

[Arkady]

These xenophobic sentiments cut across all political divides. This law was only pulled at the last minute because so many of the NLA wanted MORE restrictions. Any future compromise with the junta is likely to add these! The vast majority of the voting population will not understand the implication of these measures, but will certainly be susceptible to the time honoured election tradition of "blame the foreigner". Because of this, I think it is very unlikely that any future election will change the direction on these matters. If things do not improve economically, anti-foreign policies may become even more prevalent. Certainly a time to look at company assets and be ready for changes!

As most have discovered by now the Thai public education system is extremely poor (a Thai from a good international school can easily get into even Chula or Thammasat at 16, so what does that tell you about the rest of it?). Even supposedly well educated Thais readily believe the jingoist bs spouted by the nationalists. They are taught in their lousy schools that foreign domination is incredibly evil and it is something that their system saved them from in the 19th and 20th centuries (but the Thammasat massacre of 1976 is missed out of the history textbooks and most younger Thais are genuinely shocked to learn what happened there). They also readily believe that allowing foreign ownership of land and businesses will definitely make them beggars in their own country. Ordinary Thais can't see that they already are as their country is now owned by ethnic Chinese who despise them and want to keep them down.

[RichardEllis]

These xenophobic sentiments cut across all political divides. This law was only pulled at the last minute because so many of the NLA wanted MORE restrictions. Any future compromise with the junta is likely to add these! The vast majority of the voting population will not understand the implication of these measures, but will certainly be susceptible to the time honoured election tradition of "blame the foreigner". Because of this, I think it is very unlikely that any future election will change the direction on these matters. If things do not improve economically, anti-foreign policies may become even more prevalent. Certainly a time to look at company assets and be ready for changes!

As most have discovered by now the Thai public education system is extremely poor (a Thai from a good international school can easily get into even Chula or Thammasat at 16, so what does that tell you about the rest of it?). Even supposedly well educated Thais readily believe the jingoist bs spouted by the nationalists. They are taught in their lousy schools that foreign domination is incredibly evil and it is something that their system saved them from in the 19th and 20th centuries (but the Thammasat massacre of 1976 is missed out of the history textbooks and most younger Thais are genuinely shocked to learn what happened there). They also readily believe that allowing foreign ownership of land and businesses will definitely make them beggars in their own country. Ordinary Thais can't see that they already are as their country is now owned by ethnic Chinese who despise them and want to keep them down.

100%

Brainwashing is an art form here.

Rich

[RichardEllis]

I wonder what will happen to the money taken (30% of investment over $20K) by the Bank of Thailand???

anybody knowledgeable about this? we have a fair amount stuck there for another 9 months with no interest...

oz

This is wreaking havok with my business also. Every time a payment is sent to my customer they freeze 30% and it has affected his cash flow which has affected my cash flow. he manages to get it released after a couple of months every time but it is getting ridiculous to have the money held until you can prove it is for purchase of export products every single payment.

The article mentions that it is okay to limit equity, voters rights and members of the board since there are other ways to control the company. My guess is that after every other way becomes known then these "elite" will pass amendments to close those also.

It seems clear that foreigners will be unable to control a business in Thailand. Paraphrasing what one of the NLA said yesterday, they dont want Thais to be employees in their own country. This seems clear enough.

I suspect that as a part of their increasingly inward-looking approach, what is happening is that the ruling elite is creating the circs for a massive business fire sale, following which they will be able to pick up some bargains.

We should all remember that Thailand has a rich history of manipulating the national economy for the benefit of the few at the top. It happened last year with the stock market and that idiot Pridyathorn; a lot of his mates are rumoured to have had advance knowledge and made a killing. I believe we are looking down the barrel of a huge purge of foreign business. Call me paranoid but this is increasingly unsettling.

Interestingly, the Democrats appear to be the ones with reason insofar as the FBA is concerned. Time will tell...

Rich

Edited August 10, 2007 by RichardEllis

[wintermute]

We should all remember that Thailand has a rich history of manipulating the national economy for the benefit of the few at the top. It happened last year with the stock market and that idiot Pridyathorn; a lot of his mates are rumoured to have had advance knowledge and made a killing. I believe we are looking down the barrel of a huge purge of foreign business. Call me paranoid but this is increasingly unsettling.

So what else is new in Thailand? The rich 1% control everything and they will engineer whatever political situation they wish to enrich themselves further. Nationalism is just a convenient cloak to diguise the looting Thais are doing to their "own" people. It's typical class warfare and the fact of the matter is the poor majority in Thailand are not educated enough to figure this out and probably never will. Sucks to be them but for your average farang it means nothing unless you are one of the foolish ones who invested heavily in this country. Big businesses will also be relatively immune to this because even the elites are afraid of pissing off big foreign businesses who have international clout. Thailand is just a small fish in a big economic pond.

[RichardEllis]

These "deeply entrenched vested interests" the PM was talking about referred to the Thaksin mob, the new money group, and not the old feudalist elite who are now calling the shots. This 'govt' is working for them and them only.

There is a credibility gap between what is said and what is actually done, particularly where corruption and patrobage are concerned; and both of these are still alive, well and flourishing. I dont think it will ever change. But the system can be used and money made while the dears are looking elsewhere.

Rich

[midas]

Well, be this all as it is, the bottom-line is wheather one should stay or leave. If you are in a good to great financial position, why leave and why complain? Just enjoy. The real problems are for the Thai people to face.

Sad but true - and let us hope it doesnt add to any more resentment

by ordinary Thai's towards farangs who they see as being well off

[RichardEllis]

We should all remember that Thailand has a rich history of manipulating the national economy for the benefit of the few at the top. It happened last year with the stock market and that idiot Pridyathorn; a lot of his mates are rumoured to have had advance knowledge and made a killing. I believe we are looking down the barrel of a huge purge of foreign business. Call me paranoid but this is increasingly unsettling.

So what else is new in Thailand? The rich 1% control everything and they will engineer whatever political situation they wish to enrich themselves further. Nationalism is just a convenient cloak to diguise the looting Thais are doing to their "own" people. It's typical class warfare and the fact of the matter is the poor majority in Thailand are not educated enough to figure this out and probably never will. Sucks to be them but for your average farang it means nothing unless you are one of the foolish ones who invested heavily in this country. Big businesses will also be relatively immune to this because even the elites are afraid of pissing off big foreign businesses who have international clout. Thailand is just a small fish in a big economic pond.

All of this is true imho, but they can pillage whole shitload of foreigners without upsetting the big boys and getting their asses kicked. Including a few people close to home (mine).

Rich

[xbusman]

Dont be so hasty.

When you start using shotguns on the economy, lots of peripheral damage that is unintentional. Usually when these sort of things get out hand, the big boys with enough financial resources are the first to take their loss and are able to make the transition quickly. They are also the last to come back.

This game they are playing is awfully dangerous and potentially devastating. The fallout from something like this could last for decades. In the early 80s Mexico confiscated foreign owned property and to date 30 years later their real estate market is still suffering.

You might not agree with me, but I think that the technocracy is filled with hard working, under paid, and well meaning technocrats who really do want Thailand to succeed and prosper. The bizarre rantings of PooYai is a daily grind of their world, they watch the major thieving and destruction with the same distaste as the general public. They are doing their best to keep the damage down, that is their job after all. When they give up, its time for all of us to go, and I mean right now.

Here is what the technocrats know. That when this batch of PooYai steal their full and create devastation, they will all be gone to England or New Zealand buying football teams or farms and the technocrats will be left to pick up the pieces and make things work. Again, watch for calmer heads to prevail, papers to get lost, committees that need stamps and special permits that have to be applied for in Myanmar under a full moon.

Have to keep the rantings of politicians in perspective, normally they are only just that, rantings. Having said that, I am reminded of the many people who failed to see the transition in Germany, Russia, China, Cambodia as the rantings turned completely and totally deadly.

For now, this ugly piece of work is shelved. Soon they have much much larger problems to occupy their time and we might not ever see a new FBA.

[rychrde]

Foreign Business Act stopped

At face value, revision of the law stemmed from probes into Thaksin's business dealings, most notably his family's $1.9 billion sale of its controlling stake in the Shin Corp telecoms empire to Singapore.

However, it is also about Bangkok's old business elite -- many of whom supported the September coup against Thaksin -- getting payback for having to sell their family firms to foreigners after the 1997 Asian financial crisis, analysts say.

--Agencies 2007-08-09

This just about hits the nail on the head. The ostensible reason was the Kularb Kaew fiasco but the real reason was to right the wrongs perceived from the Asian crisis in which many Thais feel that too much was given away to foreigners. Somchai Sakulsurarat, one of the vocal proponents of the NLA's more stringent version was president of Bangkok Metropolitan Bank in those days. He managed to run the bank into the ground through imprudent lending policies, so that the Techapaibul family lost the bank and most of their other businesses. On the strength of this track record he later became CEO of Thai Military Bank. Guys like this still believe that the Democrat Party should have let the country tough it out with a collapsing currency rather than bring in the IMF which insisted on tougher bankruptcy laws and waivers of foreign ownership limits to let foreigners bail out distressed companies. But we should not forget that Thaksin also road this wave of anti-foreign sentiment and then sparked off this whole FBA mess through his sale of Shin Corp.

Going forward we can only hope that the situation is now so mired that the FBA amendments will get shelved by this government. It looks as if it would be a collosal job to revise the whole FBA to create something that the Ministry of Commerce can accept along with the NLA's revisions.

The most shameful thing is that while the government is motivated by vague nationalism and the NLA is motivated by vested interests, neither side gives a monkeys about the potential effects on the Thai economy and ordinary Thai people. Neither has bothered even to mention this aspect.

On the very last point, today was driving back from the village to Sa Kaeo town. At one point my wife mentions that a huge swathe of land filled with eucalyptus sapplings that we were passing had very recently been bought by a general. He apparently is also planning to build a helipad. Land here is now dirt cheap and dropping - 1 rai under 20k B. They will ripoff their own people too, that's plain to see.

rych

[Martin]

There is good reason for that second line in the National Anthem, and for Thailand having a tough FBA.

I recommend the reading of "National Identity and its defenders" (ISBN 974 7551 88 8) for details. But, in essence, Siam could not forge a national identity easily, at the time that nation states came into vogue. There were lots of Tai-speaking people beyond what were to be the rather-arbitrary borders ofSiam.

And Tai people everywhere are wedded to being stay-at-home growers of rice on lowlands. They don't have the commercial aggression that is typical of those who venture forth from China, or the territorial and material aggression of those who ventured, or were despatched, from Britain, Portugal, Holland, and France.

The rulers of Siam, and then Thailand, had a duty, as part of their duty to provide security to those Tai subjects, to guard against the infiltrations from abroad.

To organise their commerce, they had to hire in some Chinese and, later, try to assimilate them. But Thaksin Shinawatra's actions in gathering to himself a part of the country's infrastructure and then trying to flog it to the (mainly Chinese) Singaporeans can be seen as evidence that the assimilation was not successful, and as an example of "Servants become Masters, given half a chance".

In view of the the fact that food supplies are getting more difficult, China is getting more urban mouths to feed and less farmers to grow food, and India is following suit, I would expect the Thailand government to toughen its FBA.

The way that China is using its new, huge, sovereign wealth to take over big food-growing areas of South America (that lacked that 'second line in the anthem' and a tough FBA) will not have been lost on the Thai bureaucratic polity.