The government's bill to amend the Foreign Business Act (FBA) will be tabled at the National Legislative Assembly (NLA) on April 25 for its first reading. Then it will be passed to an NLA committee, to be set up soon, for consideration.

In vetting the bill, the panel is expected to refer to the version of the amended act prepared by a group of NLA members.

"The completion of the [panel's] final draft will be sent back to the NLA for approval and forwarded to the Cabinet carrying a royal endorsement to end the legal process and allow implementation," said Somchai Sakulsurat, the whip.

The compromise between the NLA and the ministry has brightened the chances for enforcement by the interim government despite strong opposition from foreign investors over unclear regulations.

Somchai said the NLA's members had found the revised version more to their liking after the amnesty clause was deleted and also more details were given on "voting rights" aimed to protect "good face" foreign investors.

"We can accept the ministry's new draft amendment after the ministry revised it according to the Council of State's comments," he said.

The amendment will focus on reining in unscrupulous legal offices that had provided foreign investors with dubious advice on their investment proposals, such as recommending the use of nominees to circumvent shareholding restrictions.

Skol Harnsuthivarin, secretary to the commerce minister, said the ministry was quite confident the draft would be used for the NLA's debates.

Normally Parliament uses the bill sponsored by the government, he said.

"It's created a good atmosphere, now that the draft will be considered again after the ministry adjusted the details to reach a compromise," he said.

Foreign investors and embassies that are concerned about the issue of voting-rights control should agree to the new conditions if they want the government to increase transparency and good governance, he said.

Some foreign investors have controlled Thai joint-venture companies via an unfair voting-rights system for too long, he added.

Those companies should be operated under the same criteria as one share, one vote, Skol said, adding that the new regulations should not dull foreign investor confidence.

The government has also attempted to keep the protected businesses lists as small as possible by excluding industries that are covered by their own laws.

However, despite the existence of the Telecommunications Act, the telecoms business will still be protected under the latest draft. That sector has not been required by the government agency overseeing it to be exempted from FBA control, he said.

Achara Pongvutitham,

Petchanet Pratruangkrai

The Nation