It's not financially motivated; it has more to do with nationalistic pride. They are very proud of the fact that they're the only SE Asian nation never to have been conquered by a western power.

They are rightly wary of western power being exerted now through corporations rather than through a military, because that's how things work these days, so they limit the ability for western companies to make inroads here. (For example the local Shell, Esso, etc. are all technically wholly owned by Thais.)

Obviously this concern doesn't apply for freelancers and small businesses whose clients are in the US, but those folks aren't numerous enough to affect immigration policy.

I often hear that bit about Thai pride over never being colonized. It's laughable in light of actual Thai history. Like the events of 1893 when the French sailed two gunboats up the Chao Phraya river, aimed their guns at the royal palace, and said we're taking everything east of the Mekhong River. The Thais gave it up without a fight. The French colonzied it and never gave it back. When they left it became what is now known as Laos.

My brother and I have been doing business in SEA for about 15 years now (exporting), and have looked into what is required to set up shop in Thailand or Indonesia.

Limitations such as max 95% foreign ownership (Indo) end up with local lawyers or accountants owning 5% of the companies that are set up and are figureheads there to fulfill government requirements. Or in Thailand where many industries are only open to Thai nationals, which means the only way foreigners may access those industries is through marriage, though when those marriages dissolve so to does the foreign claim on business assets.

I don't blame them for making it difficult for foreign investment dollars to pour in and displace domestic ownership, or for not embracing western capitalism as fast and as hard as they can.

It's the same in Thailand.

49% foreign ownership max, unless you are American.

Agreed, but TIT. Google it..

To clarify TIT = This is Thailand