It will become tougher for foreigner to have companies in Thailand people will start running for the closest Thai lawyer today.
The Foreign Business Act will impact how people in invest in Thailand.
The FBA outlines three lists that define the sectors that are subject to the law. List One, which includes media, land trading and agriculture, is prohibited outright to foreign companies. List Two which includes weapons manufacturing, land transport, mining and handicrafts, is restricted to up to 75% foreign ownership with cabinet approval. Companies in List Three, which deals with services and professional occupations, can be up to 100% foreign-owned with approval from the Commerce Ministry.
The current FBA defines a company as foreign if 50% or more of its shares are held by foreigners. The government draft would expand the definition to include firms where 50% or more of the voting rights are held by foreigners.
Some people think it will have a great impact on the Thai currency and the Thai stock market the next few months will tell us how much. Maybe the new government will change the law over again.
