When the family of Thaksin Shinawatra, the Thai prime minister, sold its 49 per cent stake in Thailand's largest telecommunications empire in January, it inadvertently triggered a crisis that has left Mr Thaksin battling for his political survival and the country without a fully functioning government.

Thailand is now heading towards elections that many hope will resolve the political impasse. But the sale of Shin Corp to Temasek Holdings, the Singapore government's investment arm, also had another big unintended consequence: it has been raising questions about the shaky legal underpinnings for foreign direct investment inThailand.