In the middle of the article, the newspaper attributed Thailand's stock-market plunge to the draconian capital controls that, it said, had infuriated the middle-class. "Some see the new government's enthusiastic embrace of King Bhumibol's repeated suggestions that Thailand pursue economic self-sufficiency as part of the problem," it said.

The paragraph shows how little understanding The Asian Wall Street Journal has of His Majesty the King's economic philosophy, introduced some 30 years ago mainly to help poor farmers cope with financial problems and maintain their mental health.

The Learning Centre of King Bhumibol's Philosophy of Economic Sufficiency says the concept focuses on living a moderate, self-dependent life without greed or overexploitation of, for example, natural resources.

A more advanced approach includes exchanges of assistance and cooperation to benefit the public as well as promoting sustainable development. The three main features of the economic-sufficiency philosophy are moderation, reasonable actions and mental strength, and two conditions are knowledge and morality.

Importantly, it is "sufficiency economy", and not "self-sufficiency economy", as it appeared in the article.

In applying the philosophy in its policies, the Surayud government has insisted Thailand will remain friendly to foreign investment but not be as aggressive as in the past on government investment. While avoiding overinvestment, it will also urge the adoption of good-governance practices to ensure fairness.

Despite Prime Minister Surayud Chulanont's series of explanations at many venues, the philosophy has failed to sink in. And now foreigners believe several key economic moves introduced by the military-installed government are both inward-looking and inspired by the sufficiency-economy philosophy.

While praising ousted Prime Minister Thaksin Shinawatra's free-trade initiatives, The Asian Wall Street Journal failed to point out the widening trade deficits Thailand has experienced since signing free-trade agreements (FTAs) with China and India during his era. It also failed to mention the current government's intentions of pursuing pending FTAs, but in a more discreet way and including public reviews to ensure transparency.

Importantly, the newspaper attacked the current government for failing to express strong support for the role of foreign investment in the country's economy. The draconian capital-control measure was cited as one of the government's policies to reduce dependence on foreign trade.

In essence, the measure is aimed mainly at pulling down the exchange rate of the baht against the US dollar, in support of Thailand's export sector. Although the measure is too broad in scope and should have been implemented in a more discreet manner, it is vital given that the export sector generates 65 per cent of the Kingdom's gross domestic product.

Moreover, the control, while putting a cap on the Thai bond market, has nothing to do with most foreign investments, which are in the manufacturing sector.

Neither will the amended Foreign Business Act mean a lesser dependence on foreign investment. The amendments, although carried out in a very clumsy fashion, are meant to clarify the grey area where foreign investors are operating. Quite properly, they come with a grace period in which violators can comply with the new law.

The Board of Investment also announced yesterday that investment proposals would not be affected by the amendments.

The Asian Wall Street Journal said in its article: "The new rules, which still have to be finalised and passed into law, appear to affect only companies involved in the service sector, and don't affect major exporters." It shows how little it understands the issue by reporting that the amendments are intended "to limit foreign shareholding in some Thai businesses".

In fact, the statutory foreign-shareholding limit of companies in protected areas is unchanged at 49 per cent. The changes focus mainly on voting rights.

Thaksin was quoted as saying the sudden reversal compounded the earlier mistake and that the "180-degree about-turn" has "destroyed confidence" among investors.

The three episodes have nothing to do with the sufficiency-economy philosophy or with a lesser dependence on foreign trade. Thailand is supporting international trade, and this is reflected in our continued push to boost exports.

The rules have been introduced to counter problems Thailand has been experiencing. Some of them have been ignored by earlier governments out of fear of scaring away foreign investors with malign intentions.

Last but not least, all foreigners operating in Thailand are subject to the new rules, meaning there will be no future conflicts of interest. If the sufficiency-economy philosophy is involved at all, it is to ensure that the new rules are transparent and moral.