(CTN News) – Prime Minister Srettha Thavisin could face criticism for a planned change in real estate legislation. This is because there are worries over a potential conflict of interest, given that he was formerly the CEO of a prominent property business.
The Cabinet of Srettha has preliminarily accepted a proposal to increase the maximum foreign ownership of condominium units in Thailand from 49% to 75% and extend land leases from 30 years to 99 years.
This measure is being taken to revitalize Thailand’s sluggish real estate market, which has been impacted by an excess of properties and a fall in the buying power of locals.
Before beginning his career in politics, Srettha served as the president and chief executive officer of Sansiri Plc, recognized as one of Thailand’s most successful real estate developers. The transfer of all of his 661 million shares in Sansiri to his daughter was a move on his part to disassociate himself from his business connections.
On the other hand, critics are drawing comparisons with the situation of Thaksin Shinawatra, who served as Prime Minister in the past. In the end, Thaksin was found guilty of using his position to his advantage to enrich his telecom firm via the use of third-party shares. This led to his conviction and a five-year jail sentence.
An individual named Prinya Thaewanarumitkul, who is a law instructor at Thammasat University, has voiced their worries by claiming, “Transferring ownership of shares to his daughter is still the Thavisin family’s interest, and Srettha could face criticism.”
Others believe that rather than making significant changes to the regulations that are currently in place, Thailand should consider simplifying the requirements for giving citizenship to qualified foreign investors and competent professionals. This would be similar to the policies in place in the United States and European nations.
This might help properly address Thailand’s maturing population and falling birth rates.
It is possible that the discussion on this policy will be brought before Parliament for examination rather than being passed as an emergency decree because it may not be very well received.
The backing of the general public continues to be a significant obstacle; the previous administration presented a plan very similar to this one in 2022, but it was met with significant resistance and finally withdrew. The debate continues on whether these rules will substantially influence foreign investment in Thailand’s property market.
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