Thailand eyeing tighter restrictions on foreign businesses

[NamKAheng]

Classic case of the left hand doesn't know whet the right hand is doing, one minuet they encourage

people from all over the world to come to invest in Thailand and the next they come out with new

draconian masseurs how to stuff it all up... too many bureaucrats are spoiling the broth here...

No, they are not, investors are welcome to bring their money, but leave the money to be managed by Thais and they will send you a report of how well they manage it. They want you to sit and relax while they screw you.

It is that kind of nationalism that is killing this country.

But for the big industries, they will be sure to make some kind of loophole because you think Mercedes Benz, Toyota and big business like that will give the control of their companies to satisfy the nationalism of the Thais.

[RustBucket]

this is not about chasing away foreign businesses but protecting Thai ones.

What a load of old bol****s

Any Thai involvement with a firm that has a 49% foreign ownership is completely inert 99% of the time.

It is technically the foreigners business. The Thai side is a begrudged aspect to be able to register here at all.

So nothing to protect as far as Thais go.

More like facilitating the ability for the Thai side to take full control and end up stealing the business away from the foreigner.

This is going to bite them in the ass big time.

I thank my lucky stars that I am 100% trading under the radar. No tax, No regulation, Squirrel all the cash I can out of the country so that one day I can sell up and get out of this crap hole and start up my dream business somewhere a lot less ridiculous.

[kamahele]

Crazy. Doesn't the government have any experienced economists working for them? For a country seeking foreign investment, they sure do hate foreign investment.

Edited November 20, 2014 by kamahele

[Lupatria]

Somebody must have spend the entire weekend to read (and finally understand) the context of the contract they signed to join ASEAN and all possible consequences that come with it.

Hope the last farrang entrepreneur leaving the country won't forget to turn off the light.

[DrTuner]

Sign of cocooning here and there. Reminds me of something... http://en.wikipedia.org/wiki/Burma#Military_rule

[Jessi]

Not again!!!!!!!!!!!!!

[Kawapete]

I think that after the government and the Ministry of Commerce have had a few meetings on the larger embassy's in Bangkok they will reconsider like they did a number of times before. Still to me it is a mystery how this kind of statement again and again can slip out without anyone with knowledge about Thailand's economy and development stopping it. Companies established here for a while gets used to this kind of statements but it will hardly attract new investors or business to Thailand now when you can set op an operation in Myanmar or Cambodia will full support from the local governments and labour for 50% of the Thai prices.

Edited November 20, 2014 by Kawapete

[flakes]

The Improved Thai Government Business promotion offer...(It also concerns btw for Home owners..)

The foreigner Comes here and invest his money..(Some time later ) a Thai person with the 51% of the shares will then end up with his investment !

Job done, business as usual whos next !!

These unfair laws are masterminded by smart Thai chinese government people and they make sure that ordinary thais will end up with all the investments of the foreigerns..Is it fair and normal?

Look at all these nice villas in isarn Who paid for them ? and who owns them now ? you see?

Why not let foreigners buy up to 2 rai a person och wait i understand this would root out their scams.Who wants that !!

Yes make it more tight let see how many foreigners dumb enough invest anything in this place

[Smurkster]

They are just making it more and more difficult and just digging themselves further into a hole...this place is ridiculously hard to set up a business when compared with othe countries in the region

[firestar]

I don't know how this is a surprise to anybody....


The last time Thailand had a coup, the junta imposed strict capital controls and the stock market crashed, they also wanted to impose stricter restriction on foreign business but back tracked at the time.

Clean a couple of beaches, few food vendors and bikes on sidewalks and watch all the apologists clap hand at the stellar job the government is doing.





____________________________________

Edited November 20, 2014 by firestar

[Straight8]

Question ... What moron would invest 100% of their money and then hand over 51% to greedy and often corrupt individuals?

Exactly!!

One thing i have never been able to get my head around. The absolute deal breaker. The rest of the BS this nation throws at you regarding doing business just doesn't matter.

[mok199]

what a <deleted> stupid add and a equally stupid picture...whose idea and how much did they pay that out of work actor....sawadee no (crap)...

[phantomfiddler]

Loved the part about "Thai businesses not deemed ready to compete with foreign businesses" ! I guess that would include just about everything except procuring God help them when the country gets flooded by intelligent hardworking eager ASEAN neighbours looking for work, though I expect typical thai protectionism will really rear it,s ugly head in great uproar. Some people just can,t play on a level football field !

[hgma]

Remember the visa 'thing' a couple of months ago?

What's left of the war on arrival visa's?

Same thing.....Bla - Bla.......somebody gets the booth and its all a big misunderstanding!

And it is......a misunderstanding that is!

[SuwadeeS]

Thailand slowly but surely show it real face.

Thailand is one of the most fashism countries in the world.

I hope many companies realize that, and move to another place.

Let the international community teach this fashism a lesson.

[IamNoone88]

I let go half the staff go in the Bangkok chaos earlier this ..... most are still out of work. I will let the other half go if they pull this stunt and consolidate in Singapore. Looks like this old bus only has reverse gears to grind foreign investment to final wheezing halt.

[Straight8]

A country that knows no limit when it comes to stupidity.

The mind boggles with these ridiculous government policies & restrictions on foreign business how & why some major international companies see the appeal of doing business in Thailand.

Guess its stuff [back hand] most of us are not privy to.

[whybother]

I think that after the government and the Ministry of Commerce have had a few meetings on the larger embassy's in Bangkok they will reconsider like they did a number of times before. Still to me it is a mystery how this kind of statement again and again can slip out without anyone with knowledge about Thailand's economy and development stopping it. Companies established here for a while gets used to this king of statements but it will hardly attract new investors or business to Thailand now when you can set op an operation in Myanmar or Cambodia will full support from the local governments and labour for 50% of the Thai prices.

The Joint Foreign Chambers of Commerce have been discussing this issue since early last year and were meeting ministers from the previous government to discuss it. It's not something that is new with the current government, although I am surprised they are continuing with it.

[soalbundy]

It's all part of Thainess that we don't understand with our small western brains. Is your hotel half empty,put up the prices, Tourist numbers down, mistreat the tourists that you have, want corruption free civil servants, don't punish the corrupt, want good business ethics, respect the liars and cheats in society, and most importantly if you want investment put up really high hurdles.

[NamKAheng]

The problem with that king of statement is that even if they don't do it, the threat is there so it is not good to make investors more confident for the future.

[outsider]

Oh why not. Let Thailand regress all the way back into the pond it crawled out from. While everyone in the region is trying to welcome foreign businesses and investors, opening up their markets and moving on with globalisation, Thailand wants to do the opposite. And they wonder why nobody takes them seriously. It's sad, but then again, I guess they deserve what they have coming.

[GAZZPA]

Easy to understand Thai thinking here. Give Thai directors a majority decision-making authority in all foreign businesses invested in Thailand, so that the Thai directors can walk off with the money. Greed and corruption will be the downfall of this nation.

"The current law forbids foreign majority ownership in sectors where Thai businesses are deemed not ready to compete with foreign companies. Those include accountancy, legal services, architecture, engineering, brokerages, advertising, hotel operations, food and beverages and 'other service businesses.'"

Aren't some of these industries the exact ones that are supposed to be opened up under ASEAN to allow foreign competition? Isn't the government now admitting that Thailand is not ready to compete with foreigners? Exactly what I predicted, that the response to AEC economic integration would be protectionism.

I think you amy be right and thats pretty observant of you.

The thing is that when foreigners are allowed to invest and grow business the knowledge and experience gets left behind. The locals soon learn how to do things and soon look at doing it themselves (China over the past 20 years springs to mind).

You cannot hide from the International community if you want to trade openly, there has to be some sort of reciprocal behaviour or Thailand will become North Korea..

This is scary and will only mean Thailand will fall behind whilst neighbouring countries gallop onwards and upwards.. Its much more difficult to pick up and chase form the back foot,,, Thailand, will you ever do anything evenly remotely sensible for your economy and people?

[Sparkles]

I am surprised that the Thai baht hasn't weakened further.Perhaps some finance/currency whiz can tell us why

[klauskunkel]

Sure, why not. Thailand is totally self-sustainable and has no real need for foreign capital. Thailand has found a cure for Ebola and Aids, it has successfully franchised the Tour de France to France, it has singlehandedly invented Facebook and the Internet (in that order), and it's space program is second to none. Furthermore, it can boast of more brain power in a single BiB booth, than all of Silicon Valley and Wall Street combined, in fact every BiB is a rocket scientist. Let's not even mention culture and the Arts, just one word: Thai TV Drama - unparalleled!

There is just nothing that can rival this country's visionary leadership.

[Skywalker69]

Dear Thailand have you forgotten something called ASEAN? What will you do next year then?

[PaulHamon]

Most of the foreign part-owned/run sme business here in Thailand put more (or as much money) into the economy than take it out.

Most of their income/profit is spent directly in the local economy, so it's no different to Thai earning it.

Lets face it 90% of the people working/running business here are doing for LIFESTLYE not PROFIT, if they wanted PROFIT they'd surely be somewhere else.

Not sure about big business sending money overseas and outside the economy but all the 2 person operations are not (that's my guess anyway).

[MobileContent]

Classic case of the left hand doesn't know whet the right hand is doing, one minuet they encourage

people from all over the world to come to invest in Thailand and the next they come out with new

draconian masseurs how to stuff it all up... too many bureaucrats are spoiling the broth here...

No, they are not, investors are welcome to bring their money, but leave the money to be managed by Thais and they will send you a report of how well they manage it. They want you to sit and relax while they screw you.

It is that kind of nationalism that is killing this country.

But for the big industries, they will be sure to make some kind of loophole because you think Mercedes Benz, Toyota and big business like that will give the control of their companies to satisfy the nationalism of the Thais.

Those companies are all under the BOI (Board of Investment) and 100% foreign ownership has always been available.

What they really will do is going after those front-end companies with their Thai wife and the farang owns 49% in the company.

Nana Plaza is another typical example. Its controlled by foreigners (US citizens) and also they only own 49% they have preferential shares.

Their are thousands of guesthouses and small hotels that are running under the same structure.

I believe those businesses are of risks but not the large scale companies.

With a BOI company you get twice tax incentives up to 100% for 7 years and an additional 3 years.

[whybother]

Dear Thailand have you forgotten something called ASEAN? What will you do next year then?

When (If) the AEC starts at the end of next year, ASEAN companies will be able to operate in Thailand. They will still need to fulfill certain foreign (non-ASEAN) ownership criteria. An Australian won't be able to set up a company in Singapore and then operate in Thailand unless it is only 49% non-ASEAN owned.

Edited November 20, 2014 by whybother

[dannyman]

CHINA=puppets

[oztaurus]

Hence the reason why American, Australian and German firms expressed "real' desire to expand and invest in Thailand.

I am really unsure if anyone in the current government has any brain cells at all, with ASEAN months away, and this retarded proposal, they do not think many if not all giants might pack up and go

I think it is actually just a matter of poor timing - the guy whose turn it was to announce this policy review wasn't scheduled to borrow the brain cell on that day, if only they could co-ordinate the thinking component with the announcing component (and the implementing component) that would be a dream come true .... kind of like announcing the 5th incompatible transport option for Bangkok - the Gray Line monorail which alongside the heavy rail system, MRT, BTS, BRT - not to mention normal buses and long distance buses; which are all mutually incompatible with regard to rolling stock and ticketing.

TIT