Amendment to FBA will not hamper investment: Minister

The ministry held the first briefing session on the review of the FBA for the overseas business community in order to provide greater clarity and understanding on the government’s plans.
The session was attended by representatives from numerous embassies, foreign chambers of commerce, and foreign investors in Thailand.
He told them that the ministry, if it had to revise the definition of ‘foreigners’ in its amendment of the Act, would not do so in a manner that hampered foreign investment, but to facilitate more investment.
Chatchai explained that the government’s policies for amending the FBA would be based on three principles: investment promotion, simplification of procedures for business operation, and facilitation of trade and investment.
Thailand is currently undergoing a national reform process to enhance the country’s competitiveness and promote trade and investment, and reviews of relevant laws are part of this process, he said.
The FBA is one law being studied by the ministry with a view to enhancing the legislation in accordance with international practice, and without leaving a negative impact on the investment climate, he stressed.
Chatchai said the ministry was undertaking the public-hearing stage of the process and should complete the draft amendment next month, before submitting it to the Cabinet early next year.
Yesterday’s meeting was held due to concerns among foreign investors regarding the review of the FBA – concerns that had been expressed at meetings between ministry officials and representatives from various embassies, foreign chambers and investors.
The briefing session provided an opportunity for stakeholders to have an in-depth discussion about the matter, and to ensure that the representatives and foreign investors received clear answers and attained greater clarity and understanding about what was being planned, he said.
Chatchai said the government had a clear policy to promote international trade and foreign investment in accordance with good-governance principles.
As such, the review of the Act must be undertaken with utmost caution, and with attention and care in regard to the timing, so as to create an investment climate where all stakeholders would benefit, he added.
After listening to the minister, Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, said he was satisfied with the clarification by the government that it would not stringently control foreign investment, and that it would have a policy to promote more investment.
“The foreign communy wants the government to facilitate more investment. The current FBA is already stringent and should not be made any more difficult. Amidst globalisation, Thailand should facilitate more investment to increase competitiveness for the country as well as promote business development,” said Kang.
The government should create fair conditions to facilitate more investment, he said, suggesting that Thailand should no longer restrict or protect businesses as protection could lead to slow development and would only benefit specific business interests.
Foreign investors would like to invest here based on fair conditions, win-win benefits and in a form of good partnership, he added.