CAP raised on foreign holding
The Cabinet yesterday approved the draft of a new aviation-business law that would pave the way for foreign manufacturers of aircraft and parts, as well as aircraft-maintenance firms, to register in Thailand with a maximum 70-per-cent shareholding, up fro
The move is to accommodate implementation of the Asean Economic Community (AEC) in 2015 and to support the Kingdom’s aim to become the regional aviation hub. Transport Minister Chatchart Sithipan said the draft would be forwarded for consideration by the House of Representatives to replace the existing 1954 aviation-business law.
He said that if the law is enacted, foreign companies would be allowed to own 70 per cent of their Thai-registered firms according to the Asean aviation agreement. They might be allowed to own 100 per cent if their businesses are involved in highly advanced technologies.
The existing foreign-shareholding cap of 49 per cent fails to provide incentive to these kinds of businesses to invest and create jobs in Thailand, he said. It is time to amend this clause in anticipation of the upcoming AEC. This will also cater the government’s plan to create an aviation business industrial zone in Thailand to make the Kingdom the Asean logistics hub, he added.
Chatchart said that during his recent visit to Britain, he had the chance to hold discussions with Rolls-Royce, the world’s leading manufacturer of aircraft parts and maintenance provider, on the possibility that it would invest in Thailand. Rolls-Royce said it was concerned about some limitations imposed by Thailand’s Board of Investment.
While the business of manufacturing and maintaining aircraft utilises some aerospace technologies that are regarded as confidential, BOI conditions require that companies applying for investment privileges disclose full details about their business.
The minister said he would discuss with the BOI the possibility of an exemption of this condition.
