Amendment to 'Foreign Business Act' will not hamper investment: Thai Minister

[webfact]

Amendment to FBA will not hamper investment: Minister
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- COMMERCE Minister General Chatchai Sarikulya yesterday assured the foreign business community in Thailand that the ministry's ongoing amendment of the Foreign Business Act would not make it more difficult for them to operate here.

The ministry held the first briefing session on the review of the FBA for the overseas business community in order to provide greater clarity and understanding on the government's plans.

The session was attended by representatives from numerous embassies, foreign chambers of commerce, and foreign investors in Thailand.

He told them that the ministry, if it had to revise the definition of 'foreigners' in its amendment of the Act, would not do so in a manner that hampered foreign investment, but to facilitate more investment.

Chatchai explained that the government's policies for amending the FBA would be based on three principles: investment promotion, simplification of procedures for business operation, and facilitation of trade and investment.

Thailand is currently undergoing a national reform process to enhance the country's competitiveness and promote trade and investment, and reviews of relevant laws are part of this process, he said.

The FBA is one law being studied by the ministry with a view to enhancing the legislation in accordance with international practice, and without leaving a negative impact on the investment climate, he stressed.

Chatchai said the ministry was undertaking the public-hearing stage of the process and should complete the draft amendment next month, before submitting it to the Cabinet early next year.

Yesterday's meeting was held due to concerns among foreign investors regarding the review of the FBA - concerns that had been expressed at meetings between ministry officials and representatives from various embassies, foreign chambers and investors.

The briefing session provided an opportunity for stakeholders to have an in-depth discussion about the matter, and to ensure that the representatives and foreign investors received clear answers and attained greater clarity and understanding about what was being planned, he said.

Chatchai said the government had a clear policy to promote international trade and foreign investment in accordance with good-governance principles.

As such, the review of the Act must be undertaken with utmost caution, and with attention and care in regard to the timing, so as to create an investment climate where all stakeholders would benefit, he added.

After listening to the minister, Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, said he was satisfied with the clarification by the government that it would not stringently control foreign investment, and that it would have a policy to promote more investment.

"The foreign communy wants the government to facilitate more investment. The current FBA is already stringent and should not be made any more difficult. Amidst globalisation, Thailand should facilitate more investment to increase competitiveness for the country as well as promote business development," said Kang.

The government should create fair conditions to facilitate more investment, he said, suggesting that Thailand should no longer restrict or protect businesses as protection could lead to slow development and would only benefit specific business interests.

Foreign investors would like to invest here based on fair conditions, win-win benefits and in a form of good partnership, he added.

Source: http://www.nationmultimedia.com/business/Amendment-to-FBA-will-not-hamper-investment-Minist-30248620.html

-- The Nation 2014-11-27

[EricBerg]

"As such, the review of the Act must be undertaken with utmost caution, and with attention and care in regard to the timing, so as to create an investment climate where all stakeholders would benefit, he added."

Especially the Thai stakeholders will benefit from any changes of the FBA. The principle is simple: Thai economy is going down, so take more from the foreigners to compensate. The main point they forget is that Thais will not be skilled enough to run the companies. Investors leave, businesses go bankrupt, unemployment will rise. Recession.

But to prevent that would mean overseeing consequences on a longer term. And that definitely is not Thai style in running their country.

[shirtless]

Would like to know why this would not affect investment, Let foreign governments reciprocate these terms to Thai businesses , then they may understand why investment is declining.

[BSJ]

The rules here are very unpalatable to a small business person such as myself. I can only imagine big business has the same view.

[siampolee]

Well the way things appear to be going with Thailand suffering many a future loss to it foreign competitors there will be no problems as there will be no business opportunities left.

Problem solved

[Thai at Heart]

This piece is the most incredible bit of propaganda I have ever seen.

Firstly it states

That Mr. kang was satisified with the explanation.

Then it continues that the current law is already restrictive and any new law shouldn't make investment any harder.

So what did he actually say, and how do they know he was satisfied. In fact,how do they know what foreign business thinks of rhr new law when they haven't announced it precisely.

It is getting very tiresome listening to this junta talk on everyone's else's behalf.

[whybother]

the ministry's ongoing amendment of the Foreign Business Act would not make it more difficult for them to operate here.

It's not about the difficulty. It's about control of your investment.

[NongKhaiKid]

This piece is the most incredible bit of propaganda I have ever seen.

Firstly it states

That Mr. kang was satisified with the explanation.

Then it continues that the current law is already restrictive and any new law shouldn't make investment any harder.

So what did he actually say, and how do they know he was satisfied. In fact,how do they know what foreign business thinks of rhr new law when they haven't announced it precisely.

It is getting very tiresome listening to this junta talk on everyone's else's behalf.[/quot

Great Point and unfortunately the world isn't calling them out on this enough.

The Tour De France were oh so direct over their position and if diplomatic missions such as the British Embassy are complaining they're not making it clear in public. The Thai media will not report but the international media will.

I'm not saying LoS will learn a lesson but certainly won't stop as long as there's silence and they think they can get away with it.

[SABloke]

And standing on a piece of Lego doesn't hurt

[konying]

It's very promising.

So basically foreigners will be able to invest more but own less and control even less than they own.

Absolutely no reason NOT to invest

Edited November 27, 2014 by konying

[Thai at Heart]

This piece is the most incredible bit of propaganda I have ever seen.

Firstly it states

That Mr. kang was satisified with the explanation.

Then it continues that the current law is already restrictive and any new law shouldn't make investment any harder.

So what did he actually say, and how do they know he was satisfied. In fact,how do they know what foreign business thinks of rhr new law when they haven't announced it precisely.

It is getting very tiresome listening to this junta talk on everyone's else's behalf.[/quot

Great Point and unfortunately the world isn't calling them out on this enough.

The Tour De France were oh so direct over their position and if diplomatic missions such as the British Embassy are complaining they're not making it clear in public. The Thai media will not report but the international media will.

I'm not saying LoS will learn a lesson but certainly won't stop as long as there's silence and they think they can get away with it.

It doesn't matter if people call them out or not, because it doesn't matter at aall.what these numpties say other than to themsleves.

They think they will fool foreign businesses into not reading the law? So who cares what will be will be. If they tighten the law they can say whatever they like, the proof is in the pudding.

Maybe these spokesmen should sue the papers for false reporting and demand an apology?

[chainarong]

So far there has been only talk , show us the FBA amendments, tell the international investment community just what you are going to do, then everyone can make their own decision.

[casindonet]

Since it won't hamper foreign investment, lets just approved the new act asap & let the foreign companies decide.

[Thai at Heart]

So far there has been only talk , show us the FBA amendments, tell the international investment community just what you are going to do, then everyone can make their own decision.

You think that the Thai modus operandi would be to announce the change, consult businesses and maybe change it?

Haha.

Yeah right. A public amendment because of foreign opposition. Never going to happen.

[Tatsujin]

It's yet another farce ... they either don't see the need and oftentimes won't admit that they actually need foreigners and foreign investment here, and they certainly don't want to "lose control", so any changes will be minimal at best.

I'm still waiting on the UK (and other countries) insisting on reciprocal treatment for us ... but I guess that's never going to happen either ... Vietnam is looking increasingly attractive, along with MANY other Asian countries, whilst Thailand just goes backwards every day. The illusion of progress and modernity here is just that and always has been, whilst in other countries it's becoming a reality rapidly.

[Clutch]

Simple Thai translation: 'I want my cake and eat it too'

[NongKhaiKid]

It's yet another farce ... they either don't see the need and oftentimes won't admit that they actually need foreigners and foreign investment here, and they certainly don't want to "lose control", so any changes will be minimal at best.

I'm still waiting on the UK (and other countries) insisting on reciprocal treatment for us ... but I guess that's never going to happen either ... Vietnam is looking increasingly attractive, along with MANY other Asian countries, whilst Thailand just goes backwards every day. The illusion of progress and modernity here is just that and always has been, whilst in other countries it's becoming a reality rapidly.

Reciprocity is long overdue and if ever it starts I can image the screams coming from LoS.

[Thai at Heart]

It's yet another farce ... they either don't see the need and oftentimes won't admit that they actually need foreigners and foreign investment here, and they certainly don't want to "lose control", so any changes will be minimal at best.

I'm still waiting on the UK (and other countries) insisting on reciprocal treatment for us ... but I guess that's never going to happen either ... Vietnam is looking increasingly attractive, along with MANY other Asian countries, whilst Thailand just goes backwards every day. The illusion of progress and modernity here is just that and always has been, whilst in other countries it's becoming a reality rapidly.

Reciprocity is long overdue and if ever it starts I can image the screams coming from LoS.

They don't have need reciprocity. Once enough companies start choosing elsewhere, the effects will be found here fairly profoundly.

FDI has been reducing since 2011.

How much growth do they have in the last 3 years. Pulling FDI out of the economy is felt very rapidly

[whybother]

So far there has been only talk , show us the FBA amendments, tell the international investment community just what you are going to do, then everyone can make their own decision.

You think that the Thai modus operandi would be to announce the change, consult businesses and maybe change it?

Haha.

Yeah right. A public amendment because of foreign opposition. Never going to happen.

The Joint Foreign Chambers of Commerce and many embassies are in discussion with the government about the proposed changes. I'm not sure whether it will make much difference though.

[Thai at Heart]

So far there has been only talk , show us the FBA amendments, tell the international investment community just what you are going to do, then everyone can make their own decision.

You think that the Thai modus operandi would be to announce the change, consult businesses and maybe change it?

Haha.

Yeah right. A public amendment because of foreign opposition. Never going to happen.

The Joint Foreign Chambers of Commerce and many embassies are in discussion with the government about the proposed changes. I'm not sure whether it will make much difference though.

It never will public ally.

This whole tightening up is about giving CP and the banks what they want. Dhanin wants lotus back.

And he can buy any law he likes from this lot.

[spidermike007]

COMMERCE Minister General Chatchai Sarikulya insists the changes, additional restrictions and additional hurdles will not make it more difficult to operate here. And the man is ingesting a tremendous amount of LSD, or other substances if he really believes his own nonsense. Thailand should be making it easier to operate here, much like it's far more intelligent neighbor Malaysia is doing. They are offering tax holidays, assistance with construction and infrastructure, making it easier for foreigners to own property and companies, and doing the kinds of things intelligent, visionary, forward thinking people do to attract business. Thailand, on the other hand is about as creative as the state of California, when it comes to attracting and keeping business. Instead the small minded men, that were cursed with poor intelligence, and a tremendous lack of creativity, within this ministry are making things more difficult. What on earth could be going through their tiny minds? Do they not realize the amount of pressure ASEAN is going to put on industry here? Do they not realized how unprepared this country is for the big changes that are about to happen? What ever happened to the concept of being proactive? Who are these people anyway, and why were the people running this country not able to find any real talented, and competent individuals? Even one nanogram of creativity is better than zero.

Edited November 27, 2014 by spidermike007

[rametindallas]

The Commerce Minister can talk 'till he is blue in the face but if they amend to the law so that the largest foreign stakeholders have to turn over control of the direction of the country to the Thais, he will be wasting his breath. Reminds me of the saying, "Don't piss on me and tell me it's raining".

[Mr Somtam]

COMMERCE Minister General Chatchai Sarikulya insists the changes, additional restrictions and additional hurdles will not make it more difficult to operate here. And the man is ingesting a tremendous amount of LSD, or other substances if he really believes his own nonsense. Thailand should be making it easier to operate here, much like it's far more intelligent neighbor Malaysia is doing. Instead the small minded men, that were cursed with poor intelligence, and a tremendous lack of creativity, within this ministry are making things more difficult. What on earth could be going through their tiny minds? Do they not realize the amount of pressure ASEAN is going to put on industry here? Do they not realized how unprepared this country is for the big changes that are about to happen? What ever happened to the concept of being proactive?

In Thailand, really?

[yellowboat]

As usual, it is just a lot of talk. Let's have the Thai Government show why it is a better investment than its neighbors. The "we are Thailand" reason does not work anymore. They have shown their cards. It is harder to do business in Thailand, more so than its neighors. They are fallowing Taiwan down the path of irrelevance without an elected government.

[TallGuyJohninBKK]

This piece is the most incredible bit of propaganda I have ever seen.

Firstly it states

That Mr. kang was satisified with the explanation.

Then it continues that the current law is already restrictive and any new law shouldn't make investment any harder.

So what did he actually say, and how do they know he was satisfied. In fact,how do they know what foreign business thinks of rhr new law when they haven't announced it precisely.

It is getting very tiresome listening to this junta talk on everyone's else's behalf.

How about, another long and stupid "news" report that talks at length about a particular subject -- but never actually says anything factual about what they're talking about.

What are the current proposed FBA amendments and what if anything did the minister say about them? Have they changed from the recent blow-up in the BKK Post with comments from the Japanese consulate guy? Are they still talking about making it more difficult to have foreign management of businesses? Did the business reps get to ask any questions, and if so, what kind of answers did they get?

Of course, zero mention of any of that in the OP article.

BTW, I see there is a somewhat more informative article on the BKK Post website today that has the minister and the business reps giving their views.... It says the minister has approved amendments to the FBA, but is claiming they focus on other areas, not the management control issue. At least, the business leaders seem to be saying that's what he seemed to be saying. Not entirely clear.

Edited November 27, 2014 by TallGuyJohninBKK

[madmitch]

It'll be just as easy for foreign businesses to operate in Thailand,....................provided they are happy with Thais making all the decisions on their behalf.

[brimacthai]

I think the real problem is that they're listening to but not taking in, the advice from international community. Not that they every have.

Didn't something like this happen a few years back and many medium to large companies moved to other countries offering more "favorable" trading terms?

If some of the neighboring countries want to pick the lowest fruit for success... just do the opposite of what Thailand is doing.

I believe foreigners want to invest in Asia, China is very difficult, many of the other countries are maybe still a little behind in infrastructure so that leaves Thailand... who seems hell-bent on preventing this from happening here.

[timewilltell]

COMMERCE Minister General Chatchai Sarikulya insists the changes, additional restrictions and additional hurdles will not make it more difficult to operate here. And the man is ingesting a tremendous amount of LSD, or other substances if he really believes his own nonsense. Thailand should be making it easier to operate here, much like it's far more intelligent neighbor Malaysia is doing. They are offering tax holidays, assistance with construction and infrastructure, making it easier for foreigners to own property and companies, and doing the kinds of things intelligent, visionary, forward thinking people do to attract business. Thailand, on the other hand is about as creative as the state of California, when it comes to attracting and keeping business. Instead the small minded men, that were cursed with poor intelligence, and a tremendous lack of creativity, within this ministry are making things more difficult. What on earth could be going through their tiny minds? Do they not realize the amount of pressure ASEAN is going to put on industry here? Do they not realized how unprepared this country is for the big changes that are about to happen? What ever happened to the concept of being proactive? Who are these people anyway, and why were the people running this country not able to find any real talented, and competent individuals? Even one nanogram of creativity is better than zero.

Because corruption pushes the very worst corrupt unskilled (except in corruption at which they excel) individuals to the top and the best most honest people to the bottom. That's why it is such a cancer in society

[whybother]

I think the real problem is that they're listening to but not taking in, the advice from international community. Not that they every have.

Didn't something like this happen a few years back and many medium to large companies moved to other countries offering more "favorable" trading terms?

If some of the neighboring countries want to pick the lowest fruit for success... just do the opposite of what Thailand is doing.

I believe foreigners want to invest in Asia, China is very difficult, many of the other countries are maybe still a little behind in infrastructure so that leaves Thailand... who seems hell-bent on preventing this from happening here.

Similar things were pushed through after the 2006 coup. The same people are doing the pushing now.

[whybother]

COMMERCE Minister General Chatchai Sarikulya insists the changes, additional restrictions and additional hurdles will not make it more difficult to operate here. And the man is ingesting a tremendous amount of LSD, or other substances if he really believes his own nonsense. Thailand should be making it easier to operate here, much like it's far more intelligent neighbor Malaysia is doing. They are offering tax holidays, assistance with construction and infrastructure, making it easier for foreigners to own property and companies, and doing the kinds of things intelligent, visionary, forward thinking people do to attract business. Thailand, on the other hand is about as creative as the state of California, when it comes to attracting and keeping business. Instead the small minded men, that were cursed with poor intelligence, and a tremendous lack of creativity, within this ministry are making things more difficult. What on earth could be going through their tiny minds? Do they not realize the amount of pressure ASEAN is going to put on industry here? Do they not realized how unprepared this country is for the big changes that are about to happen? What ever happened to the concept of being proactive? Who are these people anyway, and why were the people running this country not able to find any real talented, and competent individuals? Even one nanogram of creativity is better than zero.

It IS easy to operate here. It IS easy to invest here.

Having control over your operation and investment is a completely different matter altogether.