Putting the genie back in the bottle will do more harm than good for this nation of 64 million people. While there's some confusion about what's going on, the junta is aiming to close loopholes to ensure international investors' stakes in publicly traded companies are capped at less than 50 percent. Investors also were spooked by moves to change investment rules and curb baht speculation.
Some of these steps are now being scaled back, or so it seems. Things keep changing fast, leaving business people with little choice but to follow media reports, and hope for the best. The government estimates 1,337 companies will be affected by the tightened ownership rules. That will send a chill through Thailand's business climate.
The ostensible reason for clamping down on foreigners relates to the Shin Corp. saga. Last year, Singapore's Temasek Holdings Pte purchased majority control of Shin Corp. from Thaksin's family, who didn't pay tax on a transaction that set the prime minister's ouster in motion. Observers figure recent changes in Thailand's foreign-investment rules were meant to reduce Temasek's stake - and to stop any future Shin-type deals.