Foreign Business Act
The Foreign Business Act currently protects many industries which in fact are ready to compete but are protected, primarily by List 3 of the FBA. JFCCT’s long-standing engagement with the FBA and related issues brings the FBA into sharp focus in playing a role in Economic Recovery.
2020: A need for immediate response to support Economic Recovery
i) Changes to List 3 of the Foreign Business Act have not kept up with changes in the market or in the economy. This fact is holding Thailand’s competitiveness back; it is a barrier to investment attractiveness. Add to this that Thailand is facing its most severe economic crisis in living memory.
ii) It is essential to attract new and support existing FDI by way of expansion and flexibility. A message that Thailand is open for business is essential to avert business failure, loss of Thai jobs and shore up trust and confidence in Thailand as an investment destination.
iii) Opening up List 3 will thus be a key tool in economic recovery.
iv) JFCCT proposes suspending List 3 for three years (roughly the expected period for return to pre COVID 19 levels of growth), then working on permanent removals in three stages over that time, which are specified in JFCCT’s Proposal. This limited duration of special treatment would stimulate urgently needed FDI. Investments in any sector would enjoy investor protection, the suspension would cease after three years, with a revised List 3 reflecting certain permanent removals.
2018 – comprehensive review: By applying five Driving Strategies, JFCCT provided a comprehensive view of the FBA and recommended removal of many items from List 3.JFCCT - FBA letter 20 June 2018