Firms suspected of FBA breaches
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Deputy Commerce Minister Natthawut Saikua said the suspected breaches had been uncovered by the Business Development Department, which would deepen its investigation soon.
He plans to hold a news conference this week on the probe and detail the specific types of businesses that could be acting as nominees.
Under the Foreign Business Act 1999, Thailand does not allow foreign interests to hold more than 50 per cent of some types of businesses, such as telecommunication, rice milling, property development, media and services. However, some foreigners have used Thai nationals as nominees to run such prohibited businesses.
The department reported that about 32,000 companies were currently operating under the FBA. Foreigners hold a majority in about 5,000 of these but have sought the government’s approval based on the monthly consideration by a department committee. About 27,000 of the FBA companies are majority-owned by Thais, but some of them may be breaching the act.
The department suspended its investigation into FBA violators and nominees for about a half a year because it wanted to wait for the auction process for provision of third-generation cellular service to be complete.
Amendments sought
Natthawut said the Business Development Department was seeking amendments to the FBA to facilitate seamless investment under the Asean Economic Community. Before the act can be amended, the department needs a mandate from the AEC strategies committee chaired by Prime Minister Yingluck Shinawatra.
He said this mandate should be forthcoming to give the government time to amend the act before 2015, when the AEC comes into full force.
