Thai Commerce puts initiative to amend 'Foreign Business Act' on back burner

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FBA
Commerce minister puts initiative to amend FBA on back burner
The Nation

BANGKOK: -- Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence.

Chainarong Chochai, deputy director-general of the Business Development Department, said yesterday that late last month, the department proposed to the minister the indefinite postponement of the amendments as most industries felt that this was not the right time.

The minister agreed, but the three lists of permitted and protected businesses in the FBA's appendix will be revised to allow more flexibility in conducting business.

Pongpun Gearaviriyapun, director-general of the department, said Chatchai's decision resulted from consideration of the current state of the Thai economy and the investment climate, and not from pressure by foreign investors on the military regime.

From the investors' perspective, news about FBA amendments could raise concerns over future business undertakings and investment choices.

While the department will wait for a more appropriate time to amend the FBA, it will proceed with investigating problems pertaining to nominees, where foreigners assign Thai citizens as shareholders to skirt laws limiting foreign ownership.

It will also review which businesses are reserved for locals only, or businesses requiring regular permit renewal.

For this year, the department, the Department of Special Investigation and the Tourism Ministry will work together to plumb the nominee issue in the tourism industry and related businesses, Pongpun said.

The Foreign Business Committee chaired by Chutima Boonyaprapatsorn, the permanent secretary of the ministry, will soon re-evaluate Lists 1, 2 and 3 in the FBA's appendix. The commercial banking and insurance businesses will likely be removed, as they are already strictly regulated by specific agencies and governed by a special set of laws and regulations.

In the future, foreigners interested in engaging in those businesses will not have to obtain a permit from the Foreign Business Committee. They can seek operating licences from the Bank of Thailand and the Insurance Commission. However, related businesses, such as leasing, in-house (within group of companies) lending and consulting services will still require permits from the committee.

Chatchai had instructed all units of the ministry to amend laws and regulations to bring them up to today's international standards and practices, so the Business Development Department recommended applying the 49.99-per-cent limit on foreign shareholdings to foreign shareholders' management authority and voting rights. That unnerved foreign investors in Thailand, who pressured the government to drop the idea as it would serve to restrict business and investment rather than to promote them.

Source: http://www.nationmultimedia.com/business/Commerce-minister-puts-initiative-to-amend-FBA-on--30251840.html

-- The Nation 2015-01-14

[NongKhaiKid]

Plans shelved as LoS needs foreign investment and there was no pressure put on the military regime by foreign sources.

All well and good but foreign investors have had an insight into the sort of thoughts running through the government and will, most likely, keep this in mind for the future.

[BSJ]

They just don't want to join the rest (most) of the world in welcoming a free trading environment....unless of course it benefits Thailand and not the foreigner's.

[MZurf]

"Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence."

Does this mean that in the future, when the economy is less comatose, they do not need foreign investors?

Is the temporary shelving of these plans supposed to unrattle already rattled international investors?

In short;

[ezzra]

Yep.. the PM is busy with bike lanes and giving freebies to the people and transferring a hoards

of policemen and other tainted officials to 'inactive positions'

I always wondered, what ever handicap to those who were transferred to 'inactive position' over the years?

[kurnell]

Why does an image of a pack of monkeys screeching always pop into my head when I read a story like this?

[englishoak]

"Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence."

Id take that to mean theres every intention to do it as soon as its convenient, damned if id have much confidence investing reading that statement

[IamNoone88]

They haven't got a clue.

[Tatsujin]

They actually need to ease the restrictions currently in place, not simply choose now not to make them even more difficult and restrictive.

So many of our clients simply won't set up businesses here because of all the costs and hurdles in place under the current "rules". But Thailand has that head in the sand, we're special attitude still.

[wabothai]

Sure, you do whatever you like. Promises, promises.

[maidee]

yesterday while watching CNN

publicity for business in DUBAI .... 100% FOREIGN OWNERSHIP

well, someone will be pleased that they give non residents the power to control their own money / wealth and not forced to give away 51%

[razer]

Dear Commerce Minister Chatchai Sarikulya,

I invite you to come to my country, invest 30 million Baht in a business start-up and give me 51% of your company which allows me full control. Or, perhaps you would prefer some idiot who could care less about anything more than getting something for nothing? And you can rent the land from me too. What do you think Kuhn Sarikulya? Do we have a deal?

[Preman]

"Unbelievable Thailand".

"The Isolated Kingdom".

"Bring Your Money Here For Nothing - and Chicks For Free"

[Suffinator]

Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence.

What a statement ... so basically they are going to wait until there are enough fools investing then move in, make draconian protectionist changes and effectively steal people's money. Yep that sounds like a plan to boost investor confidence.

Any foreigner thinking of investing in Thailand ought to be certified incompetent to deal with their own affairs.

From the investors' perspective, news about FBA amendments could raise concerns over future business undertakings and investment choices.

Yah think? This should have most investors who are able to think clearly running for the hills.

Personally I never invested anything and wouldn't do so because of the draconian laws. The truth is that Thailand could be one of the richest nations in South East Asia but they'll have to get over the stupid idea that foreigners simply want to take it over and steal all the land and business.

While the department will wait for a more appropriate time to amend the FBA, it will proceed with investigating problems pertaining to nominees, where foreigners assign Thai citizens as shareholders to skirt laws limiting foreign ownership.

What do they expect an investor to just hand over 51% of their assets to a Thai? Once again and unworkable protectionist law that does nothing to A) produce investor confidence and; increase foreign investment.

Chatchai had instructed all units of the ministry to amend laws and regulations to bring them up to today's international standards and practices, so the Business Development Department recommended applying the 49.99-per-cent limit on foreign shareholdings to foreign shareholders' management authority and voting rights. That unnerved foreign investors in Thailand, who pressured the government to drop the idea as it would serve to restrict business and investment rather than to promote them.

International Standards ... you have to be joking. I don't see the UK, US or any EU country imposing such restrictions on Thais holding assets. I would like to say that the Thais should start thinking outside the box but first they need to learn there is a box.

What Thailand needs is reform in the education system and a democratically elected government that will work for the people and certainly foreigner investors, seeing them as a benefit not a threat ... unfortunately this is not likely to happen in our lifetime.

[Neilly]

"Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence."

Id take that to mean theres every intention to do it as soon as its convenient, damned if id have much confidence investing reading that statement

I think you're right and the first line should have read:

"Commerce Minister Chatchai Sarikulya has shelved plans to amend the Foreign Business Act of 1999 until the time is ripe for the picking, as Thailand still needs foreign investors to help resuscitate the comatose economy and changing the game rules now could rattle their confidence."

[snottgoblin]

The time is coming when the ''foreign investors'' will be picking over the bones of the carcass of Thai business entities.

There will be no meat left for the corrupt fat cats to snatch apart from what may be forced to walk the business streets in order to survive.

The first fatal steps have been taking by inviting the Chinese in to play puffa trains etc.

[timewilltell]

Sometimes, well actually it seems most of the time, politicians release the most ignorant reports. In a country where foreigners have an interest to trade the government spokesman admits the xenophobic approach to foreign investment that was just proposed should be put on hold. Apparently it dawned on the dimwit that Thailand would be a loser from this idea borne out of racism. So instead they decide to oeave the status quo with a warning that they will introduce those measures at a later date when it better suits them. Why would any business thinking to invest put its investment at risk from the promised introduction of a law to force complete control by Thais of those assets. Thais are perceived, rightly, as a race of liars and scammers, a deceitful bunch of people with charming smiles but businesses look at profits and investment protection, not a deceitful smile, when considering where to invest.

Thailand needs some proper moral and educated leaders, they do not have a very big pool to choose from.

[HerbalEd]

So much for "reform." Another promise succumbs to the old order.