Prime Minister Surayud Chulanont talks to Peter van Haren, right, chairman of the Joint Foreign Chambers of Commerce in Thailand (JFCCT), after giving a speech to JFCCT members yesterday.

About 700 foreign investors and businessmen representing the Joint Foreign Chambers of Commerce (JFCCT) gathered at the Conrad Hotel to listen to the long-awaited speech from the premier, which they expected to clear any confusion over the government's attempt to amend the Foreign Business Act.

They were also eager to learn about the direction of Thailand following a series of mishaps including the capital control measures, the Bangkok bombings and the latest move to amend the foreign business law - which has been greeted rather negatively by international investors and analysts.

Some say the government has not explained all the details of the amended law or the new regulations, forcing them to put on hold their investment in the Kingdom.

Surayud assured the foreign community in Bangkok that the revised foreign business law represents a technical adjustment to create a level playing field rather than any change of the direction of Thailand, which has always embraced an open policy towards foreign direct investment.

Peter Van Haren, chairman of the JFCCT, said foreign investors and business people were generally happy with the meeting with the prime minister.

"We [foreign investors] are happy with today's meeting and are impressed with the prime minister's speech. However, we are not yet fully confident that the amended act might not create difficulties for us," he said.

Commerce Minister Krirk-krai Jirapaet said the government was committed to providing a better investment atmosphere and fair regulations in the revised foreign business law for all investors - both Thai and foreign. "I have not seen any obstacles for foreign investors with the amended law. The government is confident the foreign business law will create more transparency, good governance and fair conditions to all involved," he said.

Answering a key question from a representative of the JFTCC, Krirk-krai said most foreign investors did understand the government's responsibility and that the government did not wish to create any barriers for them, except trying to move towards transparency and fairness for all involved.

For instance, the government only wants to prevent some foreign investors from circumventing the law by using nominees to invest in restricted businesses.

All businesses are allowed to operate in the Kingdom, except for those who want to have more than 49.99-per-cent equity in businesses listed in Annexes II and III.

They must report to the authorities within a certain time period. The government will not intervene in businesses in Annex III.

Also, foreign investors in Annex II, who want to have more than 49 per cent of equity, can ask for permission from the Commerce Ministry and the Cabinet on a case-by-case basis. Foreign investors are allowed to own up to 70 per cent in businesses listed in Annex II.

"All businesses remain independent in the country, except businesses listed in the three annexes, which are subject to following the conditions," he said.

Sources from the Hong Kong Chamber of Commerce in Bangkok said they were not fully satisfied with the government's explanation.

Basically, yesterday's event was good public relations for the Thai government but foreign investor confidence was still at risk, they said.

Meanwhile, a Japanese investor in Thailand said it was a positive signal for foreign investors that the Thai government is concerned about their problems.

Nevertheless, foreign investor confidence could not be recovered entirely after a series of many unclear factors.

Werner Kubesch, a member of the Thai-German Chamber of Commerce, said he was very impressed with this government, which has tried to clarify to foreign investors about the practical measures to ensure fair regulations.

Kubesch said he believed the government was moving on the right track and would soon gain understanding among foreign investors.

Irshad Ahmad, secretary to the Thai-Pakistan Chamber of Com-merce, said yesterday's meeting was likely to create a better understanding among foreign investors.

Petchanet Pratruangkrai

The Nation