He said if the changes affected the holding levels of foreign investors in Thai firms, the government would allow a sufficient period for adjustments to be made.

Speaking at a seminar held by the Listed Companies' Association, Pridiyathorn conceded foreign investors were worried about the lack of clear rules governing the status of foreign and local firms, since the nominee issue remained unresolved.

He said that following its presentation of policies to the National Legislative Assembly (NLA) today, the government would propose that the NLA change the laws governing foreign businesses.

"I assure you the new law, or the new interpretation of the law, will not affect the business of listed firms, nor will it affect investment in the stock market," he said.

If, under the new interpretation, foreign investors were found to be in breach of foreign limits, then the government would give them an adjustment period to dilute their holdings, said Pridiyathorn.

Currently, Thai law imposes a 49-per-cent limit on foreign holdings in local firms. While Thai firms can conduct any kind of business, foreign firms are prohibited from conducting many kinds. In practice, foreign investors have been circumventing these laws by using nominees to overcome foreign limits.

Pridiyathorn also promised that the government would allow market mechanisms to run the Thai economy and would correct intervention measures introduced by the Thaksin government.

In the past few weeks, Pridiyathorn has revamped the rice-intervention scheme, which accumulated losses of Bt18 billion at taxpayers' expense. He said more action would be taken to limit the government's role in the economy and lessen market distortions.

The finance minister said the government would no longer conduct road shows to promote listed firms like the previous government did, which resulted in a waste of public resources.

"It is the duty of private firms [to do these things], and they can conduct better road shows," he said.

He assured the business community the government would enforce fair rules for all. There will be no double standards, and problems with conflicts of interest will be lessened, because ministers do not have any interests in private firms.

Pridiyathorn said the government would not intervene in trading on the stock market, nor would it issue guidelines for exchange-rate management.

He said there would be no reports of someone "looking at" firms or trying to punish them, such as occurred in the past. Therefore, under this government, investors can concentrate purely on companies' fundamentals.

Moreover, foreign investors should not be worried about the sufficiency-economy concept, because it does not have the same meaning as "self-sufficiency". He said the government would run a free-market economy and let the private sector play a leading role.

Wichit Chaitrong

The Nation