The Commerce Ministry yesterday allayed fears that the Foreign Business Act (FBA) amendment would not be implemented within the term of the current government, reaffirming it would be enacted within a few months.

Skol Harnsuthivarin, secretary to the commerce minister, said the rectifying of the Act's amendment by the National Legislative Assembly's commissioner was almost complete.

"The commissioner is scheduled to conclude the rectifying process by the end of next month. The Act will be returned for the Cabinet's acknowledgement and should be enacted before the end of the current government's term," he said.

As of now, the commissioner has finished the review of the draft legislation amendment on the definition of "foreigner".

The commissioner is reviewing minor details about the authority of the board empowered by the Act to decide whether to allow a foreign business operation in the Kingdom.

The ministry revised the FBA of 1999 last year in response to the takeover of Shin Corp by Singapore's Temasek Holdings.

The ministry said the FBA amendment would make Thailand friendlier to foreign investors.

However, some foreign investors are still concerned that the Act's amendment will affect foreign companies in the country.

The latest amendments increase penalties from three to five years' imprisonment and have eliminated the amnesty provision.

The most controversial point, that companies be classified as foreign-based on their voting rights, remains as the core of the amendments.

Skol also confirmed that the Act's amendment will only affect a small number of foreign firms, while the Act will allow companies under Annexes II and III to restructure their share and voting rights from two years to three years.

Businesses in Annexes II and III are protected for Thai investors or any foreign investors who have shares or voting rights not higher than 50 per cent.

Petchanet Pratruangkrai

The Nation