Strict New Controls on Foreigners

[kamui]

Gadfly1 said:

 

Why not open it all up? It would give the economy a much needed boost and would certainly help more than harm Thailand. You'd also have to worry less about lawyers, and more could focus more on economic fundamentals.

 

Maybe it's all orchestrated as a pre run to the upcoming election campaign? To boost the confidence of some of Mr. T's cronies (by eliminating Farang competitors) who could jump boat if juridical attacks on TRT and the EC are becoming stronger - and to play the nationalistic/xenophobic card for the rural audience?

 

I really wonder what will happen when the royal festivities are over...

::

[krml]

Reading this article proves why Thailand will always be a third world country no matter how good they think they are (Thai Gov't).

 

Economically they hinder growth by not allowing any real foreign investment. They treat foreigners like we are the scum of the Earth and they make the U.S. government look competent.

 

I read a recent article about how they are complaining about losing foreign investment. They have revised their GDP downwards and are worried that they will continue to lose more foreign investment. No wonder.

 

I am still trying to figure out how the hell the baht is still strong against foreign currencies. The goverment is in turmoil and the Thai economy is slowing. What gives?!

[Bangkoktraveler]

Gadfly said:

[color:"red"]"Why not open it all up? It would give the economy a much needed boost and would certainly help more than harm Thailand."[color:"black"]

 

 

Maybe they need an escape goat?

 

[Guest]

I am still trying to figure out how the hell the baht is still strong against foreign currencies. The goverment is in turmoil and the Thai economy is slowing.

Despite Thailand's shortcomings, this is all relative. For an entertaining, clear and accurate description of the relevance of exchange rates and how they work, see the article in the 27 May 2006 edition of The Economist entitled "McCurrencies" (p 70).

 

Exchange rates, by themseleves, really don't represent a sign of economic health, except when you see a dramatic change.

[Guest]

I really wonder what will happen when the royal festivities are over...

The gloves come off and the newspapers will carry much more interesting stories. How this will affect the nightlife scene...? It won't be a target, but it could be useful for misdirection. On the other hand, it does provide useful funding, which could be bad or good (depending upon who is trying to do what).

[William_Ginnzer]

Perhaps it is bad form to quote from an earlier post of mine (posted last year under my William Ginzer handle), but I suspect it remains relevant here"

 

You are absolutely right: there is no economic logic behind restrictions on Farang ownership of property. This is pretty much a settled issue - at least outside this board.

 

But what I find so surprising is that on some, particularly on this board, actually think there is a credible economic justification to this sort of prohibition. We saw a few loonies over here when the WTO was in town. The level of economic illiteracy out there is scary - and I guess it explains alot of stupid government policies.

 

Unfortunately for Thailand, the perception in places such as Hong Kong (the local financial center for SE Asia, where I now reside but remain a frequent visitor to Thailand) and New York (I just got back) is that Thailand suffers from both dumb economic policies and severe corruption. Good for me as a tourist when Thailand is only three hours away - it will keep the country poor and ensure that the country continues to be a source of cheap whores.

[BuffHello]

it will keep the country poor and ensure that the country continues to be a source of cheap whores.

 

***********************************

and wealthy elite with a touch of cronyism

[Guest]

This week's Stickman makes a commonsense point that has been overlooked in this discussion:

As things cool down a little from the issue of farangs buying property in their name and the dust starts to settle, people are coming out of the woodwork and telling of the difficulties they have had even when they were able to buy a property in the name of a Thai company which they essentially controlled. As some of these people wish to sell the property and then dissolve what are essentially bogus Thai companies, they are encountering more than a few problems. They had never lodged any profit loss statements and had never been audited - and this is something that the Thai Tax Department takes very seriously. In fact the cost of having a Thai company is not cheap. You have all of the tax returns to complete as well as the (twice?) yearly audit - and that isn't cheap. The bottom line is that it turns out these shell companies are not the cakewalk that some has been led to believe when they were initially set up.

This is true in virtually every other area where Farangs operate in twilight zones, such as business meetings without workpermits, majority owned Thai companies where nominees are used to address the unrealistic restrictions on "alien" ownership of businesses.

 

The one thing I would add is this: when you operate in a gray zone, you are very vulnerable. "Tehnical violations" are enforced when a local party has an interest in enforcing them, and it is hard to complain when you are violating the law. If your interests diverge from those of a local party with even only a modicum of power, you will be reminded of this. And this will have a chilling effect on what you do here.

[Bangkoktraveler]

Who is going to benefit from this? The dumb Thai used to set up the bogus company. Have they awaken yet?

 

As mentioned, when the property is ready to be sold, the paper company goes up in flames leaving a pile of ashes.

[Flashermac]

What's an escape goat?

 

p.s. The baht may be fairly strong, but prices keep going up almost every week. Notice it every time I go to the grocery ...