Foreign companies fear ownership restrictions
“If the government seriously considers amending the foreign company law to restrict foreign ownership, all hell will break loose for both current investors and those considering investing in the country. That has serious consequences for the investment climate and the economy in general.'
Well, there's not a word of Spanish in what David Lyman, former chairman and founder of the Joint Foreign Chambers of Commerce, says about the proposal from the Department of Commerce's Business Development Department. The business development department wants to close the loopholes in the Foreign Business Act.
Although a company must be more than 50 percent Thai-owned for it to be considered a domestic company, the law does not prohibit the majority of the board of directors to consist of foreigners. Nor does the law prohibit the ownership of shares with different voting rights. This means that a company can actually be foreign owned.
And that could damage the interests of Thai shareholders, says Chatchai Mongkolvisadkaiwon, chairman of the Thai Chamber of Commerce's (TCC) trade in services and investment policy committee. Chatchai confirms that Thai companies have asked for the law to be changed, specifically to counter foreign dominance in the service sector.
In an internal document circulating at foreign embassies, foreign chambers of commerce and embassies express their concerns about the proposal that would have the support of the prime minister. One embassy believes that the proposal is an initiative of the TCC with the aim of protecting Thai companies against competition from foreign companies.
According to the document, the proposal would also call for opening up some industries, now off limits to non-Thai, in an effort to appease some foreign companies.
This week, the Business Development Department is meeting with foreign and domestic business groups to discuss the proposed changes. The Department of Commerce is convening public hearings for foreign and domestic chambers of commerce and businesses in the coming weeks. The proposal must be completed by the end of this year, so that the law can be amended by parliament next year.
(Source: bangkok mail, Nov. 2, 2014)
While the world is changing (read: opening up) due to globalization, Thailand is turning away from it and becoming an “island” in the global economy. I cannot imagine that the multinationals now present in Thailand would be satisfied with that.
When this proposal is adopted, the turnips are cooked in Thailand, no foreign company will invest in this country and will leave it en masse.
I've been afraid of this for a long time.
Thailand does not open the gates for existing and new investors or companies , but closes them .
By the way, no problem at all.
Everyone is now going abroad or rather the neighbors of Thailand.
We don't live on the Moon here.
Party time is coming in Myanmar – Malaysia – laos – Vietnam – ( Cambodia maybe ) How STUPID CAN YOU BE .
Believe me if I , Janneman wanted to invest in this Region .
Is Thailand the last place on my mind at the moment .
Jan Beute.
Fine then the bath drops again only good for us.
Can they unlearn that arrogant attitude a bit.
Dear Pieter,
If the THB falls, exports from Thailand to the rest of the world become cheaper and imports to Thailand become more expensive. So also the imported things that you want to buy in Thailand. On the other hand, the exchange rate is becoming more favourable, but whether it will benefit you on balance remains to be seen.
Of course, a more favorable exchange rate will also provide financial benefits for multinationals operating in Thailand, such as Sony, JVC, etc. – after all, the export of goods produced in Thailand will become cheaper – but it is unlikely that these multinationals will want to relinquish control of their activities . So compromises will always be sought and found.
Once again they show their true face and the stupidity (or is it greed) that accompanies it, the laughing and sanctimonious distrust of foreigners knows no bounds, they may bring in large amounts of € and $ but have no further control over them !? this is actually starting to look like a firm dictatorship. the end is there in sight if this all goes through. ditto for the people who bought property there.
I am very curious what will happen to land and homeowners who have had to set up a company to buy things.
I own 49% of the shares, but I do have control.
Employees of the law firm who became co-shareholders should no longer be so!
That was supposed to change a few years ago, but nothing has been heard since.
Would it start again now?