Thailand & Politics: The Week in Review 08/12

Editorial: Thailand's unfriendly foreign business act

Foreign Business Act withdrawn

Thailand's Foreign Business Act remains ominous

Thailand & Politics: The Week in Review 08/05

An opportunity in the South

Surprising Rebuke

The interim parliament handed the CNS a surprising defeat as it rejected the government's version of the Foreign Business Act in favor of its own more far reaching one.

Will the referendum past?
Yes with more than 70% of votes for it. Yes with more than 60% of votes for it. Yes with more than 50% of votes for it. No. It will fail to get 50% of the vote.

Approved by a 76 to 64 vote, the NLA amendment added management control to the voting and ownership criteria already included in the CNS-revised bill. Following the vote, Commerce Minister Krirk-krai Jirapaet called for the bill to be withdrawn.

The key question now is what happens to the amendment. Minister Krirk-krai has expressed doubts that enough time remains in the CNS's term to assure rewriting and approval of the NLA's proposal.

Referendum Campaigning Continues

With a week to go until the referendum vote, both sides continue to exert pressure on voters. Bangkok swirled with allegations of vote buying by TRT supporters in the Northeast, while taxi drivers were cautioned to remove anti-charter stickers under threat of legal action. For their part the CNS continue to publicly advocate a neutral "get out the vote" stance, with Prime Minister Sarayud approving reduction in transit fares and a national holiday on the 20th.

Politicking Ahead of the Next Election

Despite the possible uncertainty surrounding the next elections, a great deal of political maneuvering continues to take place. Of course the man everybody would most like to see make a definitive decision, General Sonthi, remains coy and evasive. One has to wonder if he waiting for the August 19th vote to be over and done with before he opts to announce one way or the other.

For his part, Thaksin Shinawatra found time even with the demands of his new football team to release a brief speech encouraging former TRT MPs to join the People Power Party.

Stock Market Staggers - Where Are The Dollars?

With most of the world's markets reeling from the US sub-prime meltdown and possibility of a credit crunch, the SET was not immune to the turmoil as it shed 3.92% for the week. The market flirted with the psychologically important 800 level, briefly dipping below it on Friday, but managing to close at 804.84 for the week.

One of the more interesting points surrounding the fall is where are the foreign investor proceeds? For the week ended August 10th, net sales by foreigners totaled Bt4.36 billion. Despite the rush to the door, the bulk of the foreign money has not left the Kingdom. How long this remains true is an even bigger question.