Rising Foreign Ownership and Unknown Consequences: Inside the Thai Business Community’s View on Proposed Lease Extension

During an interview with Nation TV, Meesak voiced his opposition to the Interior Ministry’s proposal to increase foreign ownership from 49% to 75% and extend the lease to 99 years. He emphasized that while the government aims to spur economic growth by allowing the sale of real estate in the country and attracting more foreign investment, he has concerns about the impact on Thailand’s economy.

Meesak pointed out that there are currently many expatriates living in Thailand who own property and do business through local nominees, with Thai holdings at 51 percent and foreigners at 49 percent. He provided data on registered companies in prime locations across Thailand, highlighting the spread of nominated firms in these areas.

For example, in Chonburi Province, approximately 29.04% of the 56,756 companies could be nominated firms. Similarly, in Phuket, approximately 28.71% of the 26,292 companies can be nominated firms. In Surat Thani, about 43.49% of the 17,713 companies could be nominated firms, while in Prachuap Khiri Khan, about 35.46% of the 5,462 companies could be nominated firms.

Meesak expressed his support for the government’s proposal to allow foreigners to buy residences for personal use but emphasized that he opposes long-term property purchases or leases for business purposes as it may lead to a shift in Thailand’s economic structure that could have unforeseen consequences.

In conclusion, Meesak highlighted that while he supports some aspects of the government’s proposal to increase foreign ownership and extend leases for property purchases or leases for business purposes, he cautions against making hasty decisions without careful consideration of their potential impact on Thailand’s economy.