In a major move to increase foreign investment, Thailand plans to extend land lease terms from 30 to 99 years.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced this transformative proposal during the prestigious CEO Econmas Awards 2024, signaling a significant shift for international investors seeking long-term commitments in the Land of Smiles.
This initiative is part of Thailand’s ambitious 2025 strategic vision, which focuses on leveraging opportunities while addressing challenges and driving future growth.
Thailand boasts a sprawling area of over 300 million rai, roughly equivalent to 540,000 square kilometers, and a population of 67 million, offering unmatched potential for development and economic growth.
The planned policy revision is designed to attract foreign investors by offering usufructuary rights laws, providing assurance for the use, trade, or securing of loans against land rights.
Transitioning from the current 30-year leases to extended 99-year terms, this policy aims to provide stability and boost investor confidence for long-term projects in Thailand.
Upon the expiration of these lengthy leases, the assets would return to state ownership, with a dedicated plan to redistribute them to benefit low-income families.
This policy reflects the government’s commitment to harmonizing profitable foreign investments with social welfare, ensuring that economic benefits reach all segments of society.
Additionally, unused state lands managed by the Treasury Department and the State Railway of Thailand will be available for these extended leases.
Focusing on central urban areas, the initiative is set to offer affordable housing solutions to low-income individuals, with leases priced 30% below market rates, according to Pichai.
These housing options would be located in prime areas like Silom and Sukhumvit, providing affordable living spaces close to employment centers.
This strategic location allows low-income individuals to avoid high commuting costs, improving their access to urban employment opportunities and significantly enhancing their quality of life.
While these proposals have generated excitement among investors, they have also sparked considerable debate and opposition from various factions.
Land ownership and usage rights are sensitive issues in Thailand, and this proposal has led to vigorous debates across political and social spectrums.
Despite the Thai government’s commitment to these ambitious initiatives, it remains to be seen whether they will become law, as reported by local news media.
As the government attempts to balance foreign investment attractions with social welfare considerations, the outcome of these proposals is keenly anticipated by all stakeholders.
