Government Proposals and Thailand

Thailand: However, while the military seems to have succeeded in stabilizing the economy, key sectors such as the tourism industry are still struggling. Moreover, government proposals to amend the Foreign Business Act could make it significantly more difficult for foreign businesses to have a majority stake in many sectors, which could deter foreign investors and even drive out some foreign businesses already established in Thailand, according to Deutsche Welle. Rajiv Biswas, Asia-Pacific Chief Economist at the analytics firm IHS, says in a DW interview that if Thai government decides to pursue more protectionist policies designed to increase the hurdles for foreign businesses, this could effectively push foreign investors away from Thailand and will boost the attractiveness of other low-wage competitor nations in the region such as Vietnam, Philippines and Indonesia and Thailand economy took a hit this year following months of political instability and protests against an elected government. Two months ago, Thailand junta - which seized power in a coup back in May - approved plans for stimulus measures worth a combined 11.2 billion USD in a bid to revive growth. The proposed new changes to the legislation also comes at a time when the Thai economy is very weak, with GDP forecast to expand by just 1.1 percent in 2014 and the country other neighbors are increasingly competing for foreign investment. (news.financializer.com). As reported in the news.