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

[laocowboy2]

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.

Actually it's more about making it easier for your Thai partner to steal your investment

[laocowboy2]

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.

Including removing all the cash and other liquid assets - and leaving the liabilities behind for the foreigner to sort out.

[SABloke]

Who attend the ''public'' hearings? I didn't receive an invite I wonder if Thai execs at CP, PTT, SCG etc were invited to attend? Rhetorical question. Also, I doubt diplomats care much about SME's so hardly have the little guys interests at heart. From what I can see it's small busineaa owners that have the most to lose (In many cases most or all of their assets.

[Jimbo2014]

If they really want to see more foreign investment in Thailand then they should be consulting foreign business owners as part of the process of revising the laws, not just working behind closed doors and making sporadic, vague and confusion announcements which only go to sow fear and confusion among investors. A good example where what works in the Military doesn't translate well to civilian governance where consultation is required.

[whybother]

Who attend the ''public'' hearings? I didn't receive an invite I wonder if Thai execs at CP, PTT, SCG etc were invited to attend? Rhetorical question. Also, I doubt diplomats care much about SME's so hardly have the little guys interests at heart. From what I can see it's small busineaa owners that have the most to lose (In many cases most or all of their assets.

Large businesses would also have a lot to lose. They've invested a lot of money in their businesses and have their own managers in place to control that, along with the preference shares to control the voting.

Most farang small businesses would fall foul of these laws because they usually control the company through management even if they don't have control through shareholding.

Foreign diplomats don't care about small businesses because the SME's usually don't have any business link back to the home countries. That's where the Chambers of Commerce should step in (if you're a member), as they should be talking to the government on their member's behalf.

The chambers have been talking to the government about these laws (or variations) for a couple of years. The diplomats are getting more involved at the moment because the proposed changes could affect Free Trade Agreements and other reciprocal agreements.

[SOTIRIOS]

..duh....how about some verifiable facts........

...can anyone live on hearsay........or a 'maybe'.......let alone set up business....or try to live in a foreign country.......

.amidst uncertainty and nebulous......sometimes arbitrary rules.......???

[whybother]

..duh....how about some verifiable facts........

...can anyone live on hearsay........or a 'maybe'.......let alone set up business....or try to live in a foreign country.......

.amidst uncertainty and nebulous......sometimes arbitrary rules.......???

Isn't that what has been happening in Thailand for years?

[Thai at Heart]

Who attend the ''public'' hearings? I didn't receive an invite I wonder if Thai execs at CP, PTT, SCG etc were invited to attend? Rhetorical question. Also, I doubt diplomats care much about SME's so hardly have the little guys interests at heart. From what I can see it's small busineaa owners that have the most to lose (In many cases most or all of their assets.

Large businesses would also have a lot to lose. They've invested a lot of money in their businesses and have their own managers in place to control that, along with the preference shares to control the voting.

Most farang small businesses would fall foul of these laws because they usually control the company through management even if they don't have control through shareholding.

Foreign diplomats don't care about small businesses because the SME's usually don't have any business link back to the home countries. That's where the Chambers of Commerce should step in (if you're a member), as they should be talking to the government on their member's behalf.

The chambers have been talking to the government about these laws (or variations) for a couple of years. The diplomats are getting more involved at the moment because the proposed changes could affect Free Trade Agreements and other reciprocal agreements.

CP are the drivers here.

They have makro competing with tesco and they have true competing with ais and dtac. In food they have sun chicken and Cargill in pig feed

They would love to be rid of the competition. And they will deposit the cheque straight to Switzerland to get their law.

[ColdSingha]

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

its the give my nephew a job because he is my nephew syndrome

[Suffinator]

If Thailand wanted more foreign investment the solutions are plain and simple... let foreigners own `100% of their investment - stop being nationalistic and protectionist. End of.

[apalink_thailand]

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.

I sat on this committee many years ago. Total waste of time, just polite diplomacy. As far as I know, nothing much has changed in the right direction.

[Baerboxer]

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

By Jove, you've got it!

A good summary - Thainess at its best.

"You can invest here - we "own" 51% of your investment, and we will amend law so we have all the decision making power. Of course you can trust us to make your investment grow, pay you good dividends and make prudent long term strategic decisions. Our elite are some of the wealthiest in the world don't you know, trust us."

Thailand number 1. With a great financial and business model like this you can see why they think they will be the new financial center for ASEAN, and probably the world,

[Suffinator]

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.

Fully agree... there should be a 'Like for Like' agreement across the board.

I wonder how the Thais living in the UK would feel if they had to hand over 51% of their assets, forced to renew their visas annually and made to report every 90 days like common criminals. As for land ownership ... take it away; after all we wouldn't want them digging up our land and exporting it.

Nationalistic and protectionists idiots!

[Suffinator]

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.

It's called diplomacy ... or rather not having the spine or balls to tell the Thais how dumb they really are.

[apalink_thailand]

Who attend the ''public'' hearings? I didn't receive an invite I wonder if Thai execs at CP, PTT, SCG etc were invited to attend? Rhetorical question. Also, I doubt diplomats care much about SME's so hardly have the little guys interests at heart. From what I can see it's small busineaa owners that have the most to lose (In many cases most or all of their assets.

Large businesses would also have a lot to lose. They've invested a lot of money in their businesses and have their own managers in place to control that, along with the preference shares to control the voting.

Most farang small businesses would fall foul of these laws because they usually control the company through management even if they don't have control through shareholding.

Foreign diplomats don't care about small businesses because the SME's usually don't have any business link back to the home countries. That's where the Chambers of Commerce should step in (if you're a member), as they should be talking to the government on their member's behalf.

The chambers have been talking to the government about these laws (or variations) for a couple of years. The diplomats are getting more involved at the moment because the proposed changes could affect Free Trade Agreements and other reciprocal agreements.

Just to clarify (for those that do now know) the FCCCC (Foreign Chambers of Commerce Coordinating Committee) is a grouping of the various Chamber Presidents who meet regularly with a member of the BOT to discuss issues of concern to the foreign business community (large and small) and the usual tabled discussion is on the FBA. They are usually very short meetings.

Edited November 27, 2014 by apalink_thailand

[Baerboxer]

If Thailand wanted more foreign investment the solutions are plain and simple... let foreigners own `100% of their investment - stop being nationalistic and protectionist. End of.

They can't do that - ever. They are, in the main, woefully inept, ineffective, and unable to face competition. Protected industries, monopolistic organizations controlled by the same few families, corrupt, etc etc etc.

Can you imagine what would happen to these revered businesses if real competition, real auditing, real tax assessing, and real accountability was introduced? Th highly paid "family" jobs for members who do bugger all would have to vanish for starters. The massive over staffing would be reduced, meaning more unemployment and that people have to actually work. Can't have that.

[Suffinator]

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

You missed out the part where they also want foreigners to pay for their cake as well.

[whybother]

Just to clarify (for those that do now know) the FCCCC (Foreign Chambers of Commerce Coordinating Committee) is a grouping of the various Chamber Presidents who meet regularly with a member of the BOT to discuss issues of concern to the foreign business community (large and small) and the usual tabled discussion is on the FBA. They are usually very short meetings.

It's now the Joint Foreign Chambers of Commerce of Thailand (JFCCT). They have various committees that discuss industry specific issues. The heads of the committees and chamber presidents meet with the BOT and various ministers and departments. They do get somewhere sometimes.

[jaywalker]

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.

But...But...But... Thailand is a poor country! They aren't ready to compete fairly on the world stage!

Much like they'd never compete fairly in a farang VS. Thai dispute, be it in a back alley bar-fight or on the world stage.

Archaic laws will never be enhanced with yet newer laws.

They should repeal STUPID laws (as should most countries).

1. Grant 60% controlling interest in a company to anyone willing to be an Entrepreneur. 40% Thai owned seems fair enough & they'd have to pay taxes at 30%.
2. Allow Retirees/Pensioners to own at least 1 rai/half an acre of land & a house on it.

I could go on and on, but just those two above, would see MASSIVE amounts of foreign capital inflow.

[Ulic]

We shall have to agree to disagree and see where it stands in three years time.

[Suffinator]

When I lived in Thailand I had the perception that the Thais held all the power - this my friends is a myth. On leaving I realised that I held the power and indeed if you think about it logically so do you.

If the Thais venture down this road then the only sensible thing to do is leave. I, like many others, moaned about the ridiculous immigration laws and the FBA that effectively wanted me to put 100% of the money in for a 49% stake ... I never did it.

It is the foreigners here that hold the power. Could you imagine what would happen if all the foreigners walked out of somewhere like Phuket alone? It's estimated that some 250,000 foreigners reside there; both retired and those doing business - think of the losses Thailand would suffer if they all walked.

It's likely that they wouldn't make it to the airport of bus station before the Thai gov changed it's tune and if they didn't Phuket, like the rest of Thailand would go bust.

All countries need foreign investment and if Thailand thinks it can survive on its own then let them have at it.

Change, and I mean all change, comes about through the will and ACTIONS of the masses. Until the foreign community is willing and able to show the 'Pro-activeness' it so often accuses the Thais having a lack of then things will never get better and in fact will probably get worse.

There are many other countries in South East Asia now opening their doors to foreigners so why doesn't the foreign community simply walk through one of them? I'm guessing they are unable to think beyond the borders of Thailand and be pro-active ... they have in effect become Thai.

Stop you're moaning folks and do something about it ... become pro-active and learn that there other other pastures ... I did and I can tell you that it's far less stressful.

[BlackJack]

Just wondering if the FTA (free trade agreements) that Thailand has signed with many companies is still valid

as some FTA's specifically state the structures and the shareholder numbers in companies

If they ignore these agreements then other countries are free to negate Thai interests - tit for tat so to speak

[iReason]

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

Strange.

The foreigners seem to say just the opposite.

[yellowboat]

Stop you're moaning folks and do something about it ... become pro-active and learn that there other other pastures ... I did and I can tell you that it's far less stressful.

Ah, somebody who understands. Buy and sell to Thais from the outside. Thailand has some nice resources and good customers, but the real business is done else where.

In Canbodia, foriengers are brewing liquer and pretty much anything else they want.

China is more open to small foriegn owned business. They crave good western food and antiques.

Thailand will always disappoint you in the end if you rely on HER. People who only do business there have been subdued. Most honest Thais will warn you NOT to set up there.

Edited November 27, 2014 by yellowboat

[Emster23]

" Could you imagine what would happen if all the foreigners walked out of somewhere like Phuket alone? It's estimated that some 250,000 foreigners reside there; both retired and those doing business - think of the losses Thailand would suffer if they all walked."

You forget that forecasting more than 20 minutes into the future not part of mind set. They would see this as fantastic, all those properties abandoned etc. Swoop in like vultures without noticing "Gee the whole herd died. What do we do next year?". Cannot distinguish between seed corn and feed corn. Just eat it all and mai pen rai....

[spidermike007]

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

By Jove, you've got it!

A good summary - Thainess at its best.

"You can invest here - we "own" 51% of your investment, and we will amend law so we have all the decision making power. Of course you can trust us to make your investment grow, pay you good dividends and make prudent long term strategic decisions. Our elite are some of the wealthiest in the world don't you know, trust us."

Thailand number 1. With a great financial and business model like this you can see why they think they will be the new financial center for ASEAN, and probably the world,

And that is referred to as:

Delusion

Hubris

Arrogance

A complete and total lack of vision

Incompetence in the business planning arena

Incompetence in attracting foreign investment into your country

Incompetent governance

Lack of intelligence

Lack of wisdom

Unwillingness to consult the outside world, where a far greater degree of success and wealth building is found, to seek answers.

Cronyism

Nationalism

Isolationism

Ignorance

Small mindedness

Closed mindedness

Dumb

.

[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.

It's called diplomacy ... or rather not having the spine or balls to tell the Thais how dumb they really are.

Not.really. the reporter has just blatentlt put words in someone's mouth unless he just completely contradicted himself

[rickirs]

"... 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."

Has the military or Junta ever misled anyone?

The military will not overthrow the government.

The military must be politically nuetral.

The military is only interested in bringing peace to the streets

The junta is not a dictatorship.

To the esteemed audience of the mnister's presentation, it's all about that grain of salt. Smart money will make no real investments until an elected government is in place.

Edited November 27, 2014 by rickirs

[Travelman868]

"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.

While Thailand carries on with the policy that Farang's opening a business, cannot keep control of the money then only big business will invest.

They do not understand that ALL big companies started small. Apple and Microsoft started in sheds

[whybother]

The news from a meeting today is that the Japanese chamber of commerce basically said that if they're is any change to the FBA they're leaving.

Don't expect anything to change.

Edited November 27, 2014 by whybother