The government has reiterated its planned amendments to the Foreign Business Act (FBA) are aimed at reducing obstacles to trade and investment.
Joint Foreign Chambers of Commerce in Thailand recently holds a press conference expressing concerns about the amendment of the Foreign Business Act. (Bangkok Post file photo)
“The ministry is just in the process of studying the existing FBA,” said Pongpun Gearaviriyapun, director-general of the Commerce Ministry’s Business Development Department.
“The amendments, if any, will be based on four key objectives — promoting foreign investment, minimising licence application steps, facilitating trade and investment, and not creating any impact on existing businesses.”
Ms Pongpun said her department would provide results next month from the study and public hearings involving state officials, members of the Federation of Thai Industries, Thai Chamber of Commerce and Joint Foreign Chambers of Commerce in Thailand and business operators.
She insisted the proposals to the commerce minister for consideration were only about the study and hearings, not the draft amendments.
The draft will proceed only when the commerce minister agreed, she said.
Ms Pongpun said the issues to be studied included the definition of “foreigner”, foreign qualifications, minimum capital criteria, relaxation of the annexes on List 3 of the FBA, speeding up licence approval and penalties for unlawful nominees.
The proposed changes have sparked concern among foreign investors. Foreign chambers are lobbying the government, saying any amendments must not make the FBA even more protectionist and restrictive.
Foreign investors are concerned the government will impose new conditions in the FBA that would make what some businesses are doing illegal, while big law firms have urged the government to facilitate investment by multinational corporations that help to develop businesses in Thailand and reduce obstacles to foreign involvement.
They are also calling for clarity from the government about proposals to alter the FBA.
Ms Pongpun said her department would tomorrow propose to the Foreign Business Board’s meeting an easing of restrictions for four businesses on List 3 — commercial banks, representative offices of foreign banks, life insurance and nonlife insurance.
Those businesses, once endorsed by the board, would be allowed to ask for permission only from the central bank and the Office of Insurance Commission, not from the Commerce Ministry.
Amendments to the FBA will concentrate on easing restrictions, Ms Pongpun said.