• 
• 

Published on August 10, 2007

You reported that, "The NLA members said it was the most difficult law to decide upon because it would have a lasting impact on Thailand." Since this government and its National Legislative Assembly are of a caretaker nature, ethically they should refrain from introducing laws or actions that would have a lifelong impact on our nation. It would be more appropriate for it to be left to an elected Parliament to debate and decide on the issue.

Songdej Praditsmanont

Bangkok

----------------------------------------

Scuttled revisions might have caused a SET crisis

Re: "Feared FBA bill pulled by govt", News, August 9.

Following the fiasco in the National Legislative Assembly (NLA) over the Foreign Business Act amendments, it is to be hoped that the government will finally let go of this nettle and leave it for the next elected government.

The NLA's version of the Foreign Business Act amendments seems to have been extremely poorly thought through and, among other undesirable effects, could potentially cause a meltdown in the Thai stock market. By defining as foreign a company in which foreign shareholders have the ability to appoint management or control the board, the law could affect the status of many listed companies.

Examples of companies where foreigners own the majority of voting shares and have the ability to appoint management and control the board include Bangkok Bank, Kasikornbank, LPN Development, Golden Land, Thoresen Thai Agencies and many others. I explained in an article in The Nation in January how the widespread use of non-voting depository receipts (NVDRs) creates this effect by reducing the total number of voting shares outstanding.

The current FBA was redrafted in 1999 with some minor cosmetic changes but is essentially the Alien Business Law of 1972, a revolutionary decree issued by the oppressive Thanom-Praphas military dictatorship. The law, drafted in a bygone era and a non-globalised world, starts from the premise that foreign investment is dangerous and should not be allowed, except in a few very special circumstances where it should be carefully controlled and monitored. It is now the strictest foreign investment law in Asia where many countries now only restrict a handful of sensitive sectors from foreign control and allow foreign investors to own land or land-use rights without much restriction.

Thailand is now badly in need of a modern foreign investment code to help make it competitive with other Asian economies that are forging ahead, while the Thai economy can no longer generate sufficient growth to satisfy the reasonable aspirations of the Thai people. It is sad that neither the Commerce Ministry nor the NLA seems to have taken into account the likely economic effects of the Foreign Business Act amendments, but let's hope that the important task of drafting a sensible foreign investment code will now be left to a government that will be accountable to the electorate for the economic effects of its policies.

George Morgan

Chon Buri

----------------------------------------

Outdated Act fails to meet demands of a global age

I was greatly relieved upon reading that Commerce Minister Krirk-krai Jirapaet has asked the National Legislative Assembly to withdraw this iniquitous, self-defeating piece of legislation.

Its passage has been a direct result of Thaksin's dodgy dealings and its revision, which would have punished foreign investors so perniciously, is outdated especially given the fact that Thailand now suffers from diminishing economic growth in the region.

In England, we have accepted French, German, Japanese and people of many other nations to have controlling interests in the country, even in once-nationalised industries, because we recognise the natural trend of the corporate world getting progressively smaller.

I, for one, would welcome any government that can free itself from the shackles of this blind nationalism. As Samuel Johnson once remarked, "Nationalism is the last refuge of a scoundrel."

We've been granted a reprieve for now, but what next?

James Groveway

Bangkok

----------------------------------------

Going forward, Asean must strengthen EU ties

Re: "Asean at 40: sights set high", Editorial, August 8.

Your editorial cogently reminds us that Asean has proven to be a valuable partner for Western countries wanting to engage the region in friendly relations. Indeed, an essential chapter of Asean's future is closely linked to the overall development of its external relations in general and to a potential dynamic partnership with the European Union in particular.

The 37 members of the two leading regional organisations are expected to enhance the visibility of their dialogue and cooperation. It is estimated that from next year, Asean will hold 750 meetings a year. How many will be devoted to Asean's relations with other organisations?

There seems to be a consensus that the EU and Asean need a more proactive approach concerning their relationships and their diplomacy should produce more tangible results.

High cordiality in friendships does not justify low intensity in actual collaboration.

The forthcoming Asean-EU Commemorative Summit should be viewed both as a milestone celebration of 30 years of relations between the two entities and as an extraordinary occasion to consider their specific contributions to shaping the world order during the current irreversible process of globalisation.

Ioan Voicu

Bangkok

----------------------------------------

Airport's report card still has some black marks

With all the news and attention there have been few changes for the better at the [Suvarnabhumi] airport. On a recent trip outside the country I noticed police on motorcycles racing up and down at the taxi drop-off point hassling drivers.

Inside was the same with air-conditioning not working on the upper levels and prices much higher at 400 per cent than the legally defined maximum mark-up.

The new liquid laws are somewhat annoying and I saw one person with a dozen tubes of something in a plastic bag and a full bottle of single malt scotch in the bin.

It appears that the duty-free sellers are not doing their job about warning customers of the new rules.

So nearly a year after opening there has been little visible progress apart from the presence of workers with small buckets, surface patching the growing number of cracks.

Christian Lloyd

Bangkok