Google
 

Monday, January 29, 2007

Foreigners Keep off Thai..land, says head Thai fascist Krirk Jirapaet

Foreigners warned on land


Krirk-krai: Resorts not in Thai hands

UMESH PANDEY


Foreign investors holding property through shell companies using Thai
nominees have been warned to restructure their holdings or face
prosecution.



"Foreigners using shell companies to buy housing across the
country are violating two laws. One, the Land Act that forbids
foreigners from holding land and two, the Foreign Business Act by using
nominee structures. I recommend that they restructure," Commerce
Minister Krirk-krai Jirapaet told foreign journalists at a dinner talk
on Friday.



Under Thai law, he pointed out, foreigners can only own land if
they have businesses promoted by the Board of Investment, under the
Industrial Estate Act or with written permission from the Interior
Ministry.



"Look around you _ all the land in Samui, Phuket and Koh Chang
is in the hands of foreigners. They cannot take the land away but
there's a sense of nationalism and therefore they should restructure,"
a combative Mr Krirk-krai said in response to questions from
foreigners.



The resort islands of Phuket and Samui have been the focus of
foreign investors who have snapped up million-dollar villas as second
or retirement homes, but the imminent changes to the Foreign Business
Act have begun to keep investors, developers and buyers at bay.



It is expected that among those to be hurt the most by the new
rules will be companies selling villas to foreign buyers, as any
foreigner will need to set up a company with at least a 51% Thai
shareholding. To comply with the amendments, companies will need to
change from freehold to leasehold contracts.



Market experts believe the villa-for-sale market in resort
destinations will suffer as a result.



Mr Krirk-krai also said that the government would likely look
at ways to plug the loopholes under which companies use Non Voting
Depository Receipts (NVDRs) to circumvent FBA-mandated restrictions on
foreign ownership.



"I will make sure that over the next three or four months we
will plug this loophole," he said.



NVDRs are issued by Thai NVDR, a subsidiary of the Stock
Exchange of Thailand, to foreign investors who have bought shares in
listed companies that are already up to their foreign-ownership limits.



NVDR holders are entitled to full economic rights, including
dividends and rights issues, but are not allowed to vote, except on
motions involving delisting. Voting rights are automatically restored
if the NVDRs are sold back to Thais.



Mr Krirk-krai said the military-installed government was in a
rush to resolve this issue because abuse of the laws was a key reason
for the fall of the previous government.



"It's not that we are backtracking from globalisation and not
welcoming foreign investors, but what we want is good quality
investors, not just any investors," he said.


Money quote:

"If the investors cannot observe one or two laws that are
similar to those in other civilised countries, then we should not care
about them."


Why do foreigners put up with these lies?


Why is it that Thais can own whatever property they want in the West, yet foreigners can't do the same in Thailand?


By the way, it is the Thais who are not civilized and who don't play by the rules of the civilized world. The last 70 years has proven that.



No comments: