Critical analysis from the Singapore Media Watch:
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We publish what the Straits Times don't.
Thai amnesty for errant foreign investors mooted - Straits
Times
Straits Times
19 October 2006
Leslie Lopez
Abstract
Foreign investors should be free from prosecution for three years
while they reveal the full extent of their ownership of Thai
companies, says the nation's chief economic adviser.
Such an amnesty should also provide ample time - up to 10 years -
to allow such companies to rid themselves of any illegal holdings,
Dr Ammar Simawalla told The Straits Times in an interview
yesterday.
Dr Ammar also said that the interim government here in Bangkok
should not just focus on the controversial deal between Singapore's
Temasek Holdings and Shin Corp, but should conduct a sweeping
overhaul of the country's foreign ownership laws.
"Let's be frank, past governments have
been in cahoots with foreign business in the use of nominees
to bypass ownership laws," said Dr Ammar, whose views are taken
seriously by Bangkok's ruling elite.
He said overseas investors in Thailand had side-stepped local laws
limiting foreign ownership to 49 per cent for years. They have done
this by parking their undeclared equity holdings with local
nominees.
Dr Ammar says the practice became prevalent because "government
lawyers winked at the use of nominees". It enabled foreign
investors to flout the spirit of Thailand's ownership laws.
Temasek came under fire over allegations that it violated Thai laws
by using local business nominees to hold stakes in Shin Corp on its
behalf.
The Singapore investment agency has strenuously denied those charges, and has
insisted that it complied with all the laws and regulations in
Thailand.
Our Review
For those of you who have been following closely the Temasek-Shin
Corp controversy in both the Thai and local dailies, you will not
fail to notice the stark constrast in the style of reporting
between the two in terms of emphasis and tone.
While the local media had been unusually quiet in the past one
week, publishling only a reply from Temasek on 17 October 2006 in
the Straits Times Forum and a report today in the Straits Times,
the affair has enjoyed generous coverage in Thailand with daily
updates available on The Bangkok Post and The Nation. Are
Singaporeans less concerned about their national affairs than the
Thais?
What the Thais report
If you have read the Thai reports, you will agree that they have
used strong and harsh words on Temasek. Critical information such
as the magnitude of its financial loss and damage to foreign
relations are suppressed and not reported in the local media.
Just to quote a few examples:
1. Temasek Holdings of Singapore is willing to cut its losses and
reduce its holding in Shin Corp. (The Nation, 18 October
2006)
2. Temasek's exposure in Shin turned into a giant mistake following
the ousting of Thaksin Shinawatra as prime minister in last month's
military coup. (The Nation, 18 October 2006)
3. The deal has also put Temasek's business practices in the
spotlight and has brought an
awkward atmosphere to relations between Thailand and Singapore.
(The Nation, 17 October 2006)
4. Democrat Party deputy secretary-general Korn Chatikavanij said
Temasek's statement was ambiguous and could not be used to
interpret plans for its next step. (The Nation, 17 October
2006)
5. Singapore state investment firm Temasek Holdings stands to lose
more than Bt20 billion if it were to sell off its controversial
majority holding in Shin Corp, financial experts believe. (The
Nation, 18 October 2006).
These statements will give readers an impression that:
1. Temasek had probably made a big mistake in the purchase of Shin
Corp.
2. The financial losses from the sale of its share will be
tremendous.
3. Relationship between Singapore and Thailand has been strained
due to the controversy enshrouding the deal.
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