Does This Hurt Thailand?

[katasyd]

http://www.smh.com.au/world/for-all-malays...90630-d3tq.html

For all Malaysians: new PM abandons ethnic capitalismJuly 1, 2009 KUALA LUMPUR: Malaysia took a big step yesterday to liberalise its economy, relaxing a host of restrictions on foreign investment, including a controversial rule requiring businesses to be partly owned by ethnic Malays.

The Prime Minister, Najib Razak, announced that listed companies would no longer be required to allocate 30 per cent of their holdings to Malays as part of an affirmative action program for the country's ethnic majority.

Mr Najib said the rule was neither benefiting poor Malays nor was it sustainable amid the global economic slowdown, which will force Malaysia into its first recession in a decade. The economy is expected to shrink by up to 5 per cent this year.

"The world is changing quickly, and we must be ready to change with it or risk being left behind," he told a conference organised by the stock exchange.

"It is not a time for sentiment or half measures but to renew our courage and pragmatism to take the necessary bold measures to advance the national interests for the long-term benefit of all Malaysians," he said.

Mr Najib will have to walk a political tightrope in diluting the new economic policy, which provides a host of privileges in business, education, jobs and property ownership to the Malays who make up 60 per cent of the country's 28 million people.

Chinese and Indian ethnic minorities have long chafed against the policy, which Mr Najib has been dismantling since taking office in April. Even many Malays have protested against it, saying it mainly benefits the elite Malays.

Mr Najib later told reporters the policy had failed to meet its target of raising the Malay share of corporate wealth to 30 per cent by 2010. It stands at 19 per cent now.

The Government still wanted to meet the target by reforming the system and creating a new investor-friendly economic model, he said. "We will help the best and the good in business. We want to be fair to all communities. No one must feel marginalised … It is a tricky balancing act but it is do-able."

As part of the liberalisation, stockbrokers and trust management companies will be allowed to have 70 per cent foreign ownership, up from 49 per cent. Foreigners could also own 100 per cent of fund management companies, Mr Najib said.

The liberalisation moves take away most powers of the Foreign Investment Committee, a government body that has been the bane of foreign investors.

The Foreign Investment Committee has been derided as an impediment in Malaysia's efforts to become competitive against regional rivals such as Singapore, Indonesia and India by imposing various restrictions on investment.

Foreigners will also no longer be required to obtain the body's approval before buying property, either residential or commercial.

The last line is the most attractive^^^

I know a few other business owners who have been waiting for this day.

Thanks Thailand but you can no longer compete in your region.

Discuss.

[Time Traveller]

http://www.smh.com.au/world/for-all-malays...90630-d3tq.html

Foreigners will also no longer be required to obtain the body's approval before buying property, either residential or commercial.

The last line is the most attractive^^^

I know a few other business owners who have been waiting for this day.

Thanks Thailand but you can no longer compete in your region.

Discuss.

The mistake in your thinking is equating business competitiveness with foreign land ownership laws. Thailand and Malaysia are different countries with different competitive advantages, so the effective of different laws will not necessarily lead to improved business competiveness against another country.

Edited June 30, 2009 by Time Traveller

[Datsun240Z]

http://www.smh.com.au/world/for-all-malays...90630-d3tq.html

Foreigners will also no longer be required to obtain the body's approval before buying property, either residential or commercial.

The last line is the most attractive^^^

I know a few other business owners who have been waiting for this day.

Thanks Thailand but you can no longer compete in your region.

Discuss.

The mistake in your thinking is equating business competitiveness with foreign land ownership laws. Thailand and Malaysia are different countries with different competitive advantages, so the effective of different laws will not necessarily lead to improved business competiveness against another country.

True. Still they seem to better understand that they need to change to modern days, or they will be left behind.

[catmac]

Simple, really.

You either grow up and join the real world as Malaysia would appear to be doing, or you take the Thai route - bury your head in the sand and emit a continuous stream of BS from your other end. I think the first was "Thailand won't be affected by the global downturn", to the latest ludicrous sky-high tourist predictions for next year!

[cpofc]

have you looked at how many foreign companies operate in Thailand? Too many for me to count and list here. Whilst the Thais were doing deals with the japs building toyotas and isuzus the malays persisted with that heap of junk called the proton.

Malaysia could do well to get rid of its isolationist, arrogant, racist and xenophobic attitude. They burnt their bridges a long time ago. Now they want to compete with the 'Tigers' for a share of the pie. Talking about reaping what you sow. Mahatir set them back years and has placed them in a position where they will have to sell their soul to the devil to get themselves out of the mess they are in.

Will malaysia becoming less, officially, racist affect Thailand?

Somehow i don't think so. Unless of course things go belly up here when the inevitable occurs. But if you were going to move offshore from here, why would you go to Malaysia?

BTW, I am not talking about the Malaysian people themselves who are decent enough folk, but the despots and dictators who have lead them down this path.

[WeeGB]

I think that once the world economic downturn ends, Malaysia will be in a position to be a lot more attractive place for major companies to invest in than Thailand is. On the occasions I've been to Malaysia, I've had absolutely no language problems, the majority of ordinary people there have a good command of English, which is the main language of the international business world. The Malayasian government have made an excellent long term decision here, which I am sure will pay off for them in the future. Good to see a SE Asian government trying to move with the times, for the benefit of ALL of it's people.

Unfortunately for Thailand, it seems neighbouring countries are not only catching up, but are now putting in place systems that will leave Thailand behind. I love Thailand, and it's people, but fear for the economic future here.

[JR Texas]

Simple, really.

You either grow up and join the real world as Malaysia would appear to be doing, or you take the Thai route - bury your head in the sand and emit a continuous stream of BS from your other end. I think the first was "Thailand won't be affected by the global downturn", to the latest ludicrous sky-high tourist predictions for next year!

Right to the point and accurate.......Malaysia will gain from these changes. Investors (and retirees) want business security (the feeling that their investment is wanted and that they can control it and that a level playing filed has been created)........they want to make money......Thailand does not offer business security. Good move Malaysia!

[davejonesbkk]

Didn't Malaysia give the opportunity for foreigners to own land decades ago and then suddenly pulled it back in the 80's and confiscated property from many expats?

[Soutpeel]

Take the Thai route - bury your head in the sand and emit a continuous stream of BS from your other end.

....My vote for quote of the week...

[Bobsyouruncle]

There is an ocean of money out there.

It has allways baffled me as to why Thailand has shut the door and won't allow it to flow in!

[jackr]

Once you understand it is all one way here, regards give and take, then it is no longer baffling.

[WaiWai]

Once you understand it is all one way here, regards give and take, then it is no longer baffling.

Heh!

You either grow up and join the real world as Malaysia would appear to be doing, or you take the Thai route - bury your head in the sand and emit a continuous stream of BS from your other end. I think the first was "Thailand won't be affected by the global downturn", to the latest ludicrous sky-high tourist predictions for next year!

Yes, and what is really quite disturbing about that is the undertones of a Maoist PRC/Myanmar/N. Korean style.

While I only have a visitor's impressions of Malaysia, I certainly agree with this comment:

On the occasions I've been to Malaysia, I've had absolutely no language problems, the majority of ordinary people there have a good command of English, which is the main language of the international business world. The Malayasian government have made an excellent long term decision here, which I am sure will pay off for them in the future.

Similarly Singapore, it would seem to me. While both countries are tightly controlled, they do appear to be moving forward and have been for some time now.

For decades I have met countless people from Malaysia, Singapore and Hong Kong in Australia who were fully fluent in English, savvy, completely up to date with international professional standards and practices & able to perform at that level -- essentially bi-cultural. Even the mainland Chinese who began to appear in greater numbers since circa mid 1980's had sound academic backgrounds in their fields, and were thinkers and insatiable questioners and learners who displayed remarkable abilities to bring themselves "up to speed" with the world they were entering.

Contemporary China is moving ahead rapidly. Those controlling Thailand seems to want to revert to the conditions of pre-revolutionary China.

Edited July 1, 2009 by WaiWai

[ballpoint]

Wait for the backlash towards this move from outraged Bumi's who are going to lose out on a large slice of the pie. In a country where people protested that the street signs in Penang were changed to dual language, Malay and English, from Malay only,I can't see them lying down and taking a move like this. I suspect those at the top will continue to get their 30% one way or another though.

It seems there are a lot of Malaysia supporters on this forum, mostly those deriding Thai corruption and the ripping off of foreigners. If you all moved over the fence to those greener pastures you'd soon find out that things aren't so different there. Corrupt politicians? Check. Faked criminal charges to discredit political opponents? Check. Radical religious party wanting to impose its rules on the population? Check. Ethnic violence and racial discrimination? Check. Whole states where womens rights are suppressed? Check. Kickback taking, expat scamming police? Check. Weekly reported rapes against minors, usually nieces and neighbours? Check. Traffic jams? Check. Taxi scams? Check. Open forums where the country's problems may be debated, its corruption highlighted, and government attacked without fear? Mmm, harder to find there. But please, don't take my word for it, move there and find out for yourselves. Make sure to remember your golden rule though. Don't put any money into anything that you can't take with you. You'll find that applies there even more so than here, especially since they dangle the bait of you being able to own a piece of land. Oh, one other thing, the sin sod complainers will find that there is a similar situation there too. With the additional payment of a piece of skin from a sensative area should you wish to marry a member of the majority race.

Edited July 1, 2009 by ballpoint

[bonobo]

I had lunch Monday with a customer, a Malaysian-Chinese man.  He was pretty apolitical, but the 30% Malay requirement was his biggest bugaboo.  He really, really hated this requirement.  

I imagine he will be quite happy with this change.

[Jimjim]

You can't compare the two because who wants to live in Malaysia? You ask 10 expats and 8 or 9 of them will likely choose Thailand for all its faults over Malaysia any day.

[katasyd]

You can't compare the two because who wants to live in Malaysia? You ask 10 expats and 8 or 9 of them will likely choose Thailand for all its faults over Malaysia any day.

So true,i love living in Thailand but business wise, it's lame.

I will still live here but take my factories to Malaysia where i can own my business 100% and own the property it sits on.

Also, the tax breaks are very attractive and the baht is too strong which is costing me bigtime.

I have a close friend who has a garment factory that employs 720 thai staff, he is sick of the red tape here and want's to move it south to Malaysia.

You are going to see many companies following suit.

[thaihome]

...

It seems there are a lot of Malaysia supporters on this forum, mostly those deriding Thai corruption and the ripping off of foreigners. If you all moved over the fence to those greener pastures you'd soon find out that things aren't so different there. ...

Well done. Sounds like you have actually lived and worked there.

TH