A bold initiative by Deputy Interior Minister Niphon Bunyamanee to allow rich foreigners to purchase plots of land and property requires a serious review.
The minister said he had a plan to soon forward the land purchase proposal to the cabinet for approval.
Under the plan, foreigners who bring with them 40 million baht or more for at least a three-year investment, as well as wealthy pensioners eyeing long-term residency in Thailand, are to be eligible as land holders, which means they will be allowed to buy a house on a one-rai plot of land.
This marks a swift departure from previous policies that limit land and property purchases, except condominiums, to Thais and in some cases, those who are married to Thai citizens.
In rallying support for the proposal, Mr Niphon claimed the slumbering property and real estate sector is in need of a boost. In this case, wealthy foreigners and experts in certain professions, if allowed to make a purchase, would boost the sector and economy, he said.
At the same time, he said the government will give away incentives, like lower transaction rates of 0.01% for a house worth at least 3 million baht, for prospective buyers. The plan is to be applied to Bangkok and some major provinces where the supply of land for sale is abundant, like Samut Prakan, Chon Buri, Chiang Mai and Phuket.
Mr Niphon is no stranger to land controversies, especially in the southern province of Songkhla where he is a staunch broker for the contentious Chana industrial complex project, which involves a deep-sea port and energy development plants that are facing strong resistance from local fishermen. There are allegations he and his family are making a fortune from land profiteering in the area.
The new land policy sheds light on the rampant problem of landlessness, with most of the country's land concentrated among a few rich families, while many people face limited access to land ownership in a society known for its wealth gap and inequality.
The much-touted land and property tax implemented in 2019 has become a tool that enables the rich to amass more wealth, rather than limit it. Moreover, it should be noted that the lax control in the real estate market -- blamed for the oversupply of property -- could pose long-term economic problems.
Indeed, some advanced countries like the UK and the US have no restrictions regarding land acquisitions by foreigners. Such a policy is not necessarily a problem if the system is really fair and open to all. Sad to say, this is not the case in Thailand. Unless precautionary measures are taken, wealthy foreigners could become key actors in a new round of land grabs resulting in more social unrest.
What the government needs to do is throw away Mr Niphon's proposal and do more to promote land distribution, with a view to land justice. It is obliged to put in place certain measures that can break land concentration among the rich elite. Otherwise, it will have a ticking time-bomb on its hands.