Commerce Minister Krirk-krai Jirapaet yesterday pledged the amended Foreign Business Act would not affect foreign investors' confidence or obstruct foreign investment in the Kingdom.

He said his ministry would make amendments to the Act, ensuring fair practice and clarity for both local and foreign investors.

A ministry committee studying suitable amendments to the Act will report their conclusions to Krirk-krai on Thursday.

One objective of the amendments is to provide a clearer definition of "nominees" and their voting rights. The committee is also considering amendments to annex III of the Act to allow foreign investors to conduct business in more sectors.

Krirk-krai said the amended law should not cause foreign investors to withdraw their capital investment from the Kingdom.

"I don't believe that foreigners will divert their investment to other countries," Krirk-krai said, adding it depended on their considerations.

He said the government would amend the law based on World Trade Organisation regulations while ensuring the competitiveness of locals.

The Commerce Ministry decided to amend the law to resolve ambiguity on the question of nominees in multinational companies that arose during the investigation into Kularb Kaew's role in the acquisition of Shin Corp by Temasek Holdings of Singapore.

Skol Harnsuthivarin, secretary to the Commerce Minister, said yesterday that although the amended law would allow multinational companies to restructure their shareholding structure, including Kularb Kaew, the law would still be able to punish the company.

National Legislative Assembly member Chirmsak Pinthong had said previously that if Kularb Kaew was allowed to restructure its shareholding in line with the new law, it would be tantamount to granting amnesty to the company.

However, Skol said Kularb Kaew could face criminal action if it was found to have breached the Foreign Business Act.

Pramon Sutivong, chairman of the ministry's Foreign Business Act committee, said earlier that the law would be changed to give a clearer definition of "nominees" and their voting rights.

Petchanet Pratruangkrai 

 The Nation