Thai PM Faces Conflict Claims Over Real Estate Policy Change. Srettha’s Cabinet has preliminarily approved a proposal to increase the maximum foreign ownership of condominium units in Thailand from the current 49% to 75%, and extend land leases from 30 years to 99 years. This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power. ASEAN NOW



 

Prime Minister Srettha Thavisin may come under fire for a proposed real estate policy change, amid concerns of a conflict of interest given his previous role as head of a leading property firm. 

 

Srettha's Cabinet has preliminarily approved a proposal to increase the maximum foreign ownership of condominium units in Thailand from the current 49% to 75%, and extend land leases from 30 years to 99 years. This move aims to invigorate Thailand's sluggish real estate sector, which has been hit by oversupply and a decline in local purchasing power.

 

Prior to his political career, Srettha was the president and CEO of Sansiri Plc, one of Thailand's top property developers. In an attempt to distance himself from his business ties, he transferred all his 661 million shares in Sansiri to his daughter.

 

Critics, however, are drawing parallels with former Prime Minister Thaksin Shinawatra's case. Thaksin was alleged to have taken advantage of his office to benefit his telecom business through third-party shareholding, leading to his eventual conviction and a five-year prison sentence.

 

Prinya Thaewanarumitkul, a law lecturer at Thammasat University, expressed concerns, stating, "Transferring ownership of shares to his daughter is still the Thavisin family's interest, and Srettha could face criticism."

 

Some suggest that instead of drastically changing existing laws, Thailand should consider simplifying the criteria for granting citizenship to qualified foreign investors and skilled professionals, akin to policies in the United States and European countries.

 

This could help address Thailand's aging population and declining birth rates more effectively.

 

The debate over this policy might also end up in Parliament for scrutiny rather than being enacted as an emergency decree, given its potential unpopularity. Public support remains a key challenge; a similar proposal in 2022 by the previous government faced strong opposition and was ultimately withdrawn.

 

As the debate continues, the question of whether these policies will significantly impact foreign investment in Thailand's property market remains.

 

Picture courtesy: Facebook ไทยคำจีนคำ

 

-- 2024-06-29