New Laws may Restrict Foreign Businesses

Thailand, the country known as the Land of Smiles, is considering legislative amendments that may restrict the ability of foreigners to live and work in the country. Although the law and the attitude behind it, is unlikely to affect the average short-stay tourist to the country, they do reflect a deeper feeling to foreigners than is portrayed in the average sunny smile.

In the past seven months, the government has taken a tougher stand on tourist visas which are often abused by long-stay retirees and expatriate workers. In January, a bill was first proposed which, if approved, will restrict the operations of many foreign companies.

“There’s been a trend that suggests rising economic nationalism,� said Thitinan Pongsudhirak, a professor of political science at Chulalongkorn University.

Although the average person in Thailand certainly welcomes tourism in the country, those who have been exposed to foreigners who are not tourists in Thailand often have stronger feelings on the subject.

“We are getting a lot of weird retirees here,� Vongthip Chumpani, an adviser and former vice president of Bangkok Bank, said. “They can’t survive in your country so they come here.�

Vongthip also feels strongly about the former Prime Minister Thaksin Shinawatra’s policies regarding foreign investment. Prior to the coup which removed him from power in September, Thaksin was busy negotiating a number of free-trade agreements with countries such as China, Japan, Australia and the United States.

“We bent over backward all the time to accommodate foreign investors,� Vongthip said.

The new law may force some companies such as Federal Express, to relinquish control of their operations in Thailand, with more power and privileges being transferred to Thai-owned companies. Other companies, such as Carrefour, may be banned from expanding their operations in the future. And property purchases by thousands of non-Thai born people could be declared illegal.

The Foreign Business Act amendments have already been accepted by the Thai cabinet and are now undergoing a review process by the Council of State.

Thailand, a country with a population of 64 million, hosts approximately 15 million tourists every year, with numbers growing each season. Often gross disparities are evident between local residents and expatriate residents.

“In years past we’ve always targeted numbers: trying to achieve the highest numbers of arrivals possible,� said Chattan Kunjara Na Ayudhya, a spokesman for the Tourism Authority of Thailand. “It’s time to change. If we continue to focus mainly on numbers, some destinations will not be able to handle that many people.�