by Daryl Lum | Jul 19, 2024 | Bangkok Property Market Updates
Prime Minister Srettha Thavisin delivered a keynote speech at the Finance Ministry’s “Ignite Finance” initiative on Friday, a part of his “Ignite Thailand” vision to establish the country as a global financial centre.
The “Ignite Finance” initiative aims to elevate Thailand on the global financial stage with a strategic focus on banking, securities, derivatives, digital assets, and insurance. It seeks to expand financial access for underserved communities and small businesses, promoting inclusive economic growth.
The initiative is built on three main pillars:
1) Future-Ready Regulation: The Finance Ministry emphasized the need for a flexible, transparent regulatory environment that supports investment. A proposed bill aims to consolidate regulations into a unified system, streamlining processes for businesses within the financial sector.
2) Next-Generation Incentives: “Ignite Finance” seeks to position Thailand as an attractive destination for financial institutions by embracing policies that facilitate foreign companies, including work visas, competitive tax structures, and strategic incentive programs.
3) Empowered Ecosystem: The initiative will develop an advanced and transparent legal framework to support financial activities, building on Thailand’s pioneering digital asset laws. It also emphasizes modern infrastructure to support businesses and improve the quality of life for their employees, fostering continuous growth and innovation within the ecosystem.
by Daryl Lum | Jul 18, 2024 | Bangkok Property Market Updates, Developer Watch, Investment Analysis
SET-listed developer Sansiri is preparing for a challenging market in the second half of the year by securing bank loans totaling 15 billion baht, aiming to boost foreign demand and launch high-end projects.
Uthai Uthaisangsuk, president of Sansiri, noted a slowdown in the residential market as demand in the middle to low-end segments weakened due to various negative factors affecting mortgage approvals.
“Developers should be more cautious about their financial status in the second half as this trend continues,” he said. “While GDP is expected to grow by 2.5% in the next six months, its positive impact on the residential market will be seen 6-12 months later.”
Mr. Uthai announced that the company has secured 15 billion baht in bank loans, including 10 billion from Siam Commercial Bank and 5 billion from Kasikornbank (KBank), for new projects this year without needing to show the project’s presales rate.
KBank is supporting new projects in Pattaya, Charoen Nakhon, and Pathum Thani.
This year, Sansiri plans to launch 46 new projects worth a combined 61 billion baht, the largest in the industry. In the first half, it launched 20 projects worth over 22 billion baht and recorded 25 billion baht in presales.
Of the first-half presales, 4 billion baht came from foreign buyers, primarily Chinese. The company aims to achieve 7 billion baht in presales by year-end, up from 6.1 billion in 2023. The overseas market, especially Chinese buyers, will be the company’s focus for the remainder of the year.
In the second half, 26 new projects worth 38 billion baht are set to launch, targeting 27 billion baht in presales for an annual total of 52 billion, up from 49 billion baht in 2023. Of the new launches, 20 projects worth 34 billion baht will cater to the middle to upper-end segments, while six projects worth 4.5 billion baht will target the lower-priced segments.
Fourteen projects will be single detached houses and mixed products with duplexes and townhouses, while 12 will be condo projects. No single project will consist solely of townhouses, Mr. Uthai said.
“Buyers in the luxury segment have no issues with borrowing or purchasing, but given the current sentiment, they may delay making decisions,” said Sriamphai Rattanamayoon, chief marketing officer. She added that the market was competitive in the first half, but the company met its sales targets.
In challenging market conditions, homebuyers typically prefer reliable brands with excellent after-sales services, Ms. Sriamphai said. Other strategies to attract homebuyers include offering attractive clubhouse and home features, as well as special-focus projects like pet-friendly condos or low-rise houses with larger outdoor spaces and pet parks in common areas.
by Daryl Lum | Jul 17, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development
The Immigration Bureau (IB) is implementing measures to ensure that immigration control at airports will take no longer than 45 seconds per person. This initiative supports the government’s expanded visa-free scheme for foreign visitors, which was launched on Monday.
Pol Maj Gen Phanthana Nutchanart, the IB deputy chief, announced on Tuesday that the bureau is prepared to align with the government’s policy. To alleviate long queues at immigration check-in booths during peak hours, the number of immigration officials will be increased.
“Our goal is to ensure that each arriving passenger will clear immigration within 45 seconds,” stated Pol Maj Gen Phanthana. He also mentioned that airports are incorporating biometric technology to enhance security against transnational criminals.
Furthermore, Section 38 of the Immigration Act mandates that house owners, heads of households, landlords, or hotel managers who accommodate foreign visitors must report their presence to immigration authorities within 24 hours of their arrival. This allows immigration authorities to monitor foreigners staying in the country.
The expanded visa-free scheme now allows citizens from 93 countries and territories to enter the kingdom without a visa, up from 57 previously. The details of this expansion were published in the Royal Gazette on Monday, and those arriving under this scheme can stay in the country for up to 60 days.
Prime Minister Srettha Thavisin assured that the immigration police and security authorities have made the necessary arrangements to accommodate this policy. “I believe the scheme will bring long-term benefits,” he remarked.
The Ministry of Interior spearheaded the expansion of the visa-free scheme, which includes extending the list of visa-exempt countries, increasing the number of countries eligible for visas on arrival, introducing the new Destination Thailand Visa (DTV) for remote work and tourism, and extending stay durations for foreign students seeking employment post-graduation.
The DTV permits foreigners to stay in Thailand for up to 180 days at a time for tourism and remote work purposes. This multiple-entry visa is valid for five years. Eligible individuals include remote workers, also known as digital nomads or freelancers, and those participating in activities such as Muay Thai courses, Thai cooking classes, sports training, medical treatment, seminars, and music festivals. Spouses and dependent children of DTV holders are also included.
by Daryl Lum | Jul 16, 2024 | Bangkok Property Market Updates
Chalerm Yoovidhya, co-owner of Red Bull, now leads Thailand’s richest family, according to the latest Forbes list, overtaking the Chearavanont brothers. Despite this, the total wealth of Thailand’s 50 richest families has declined by 15%.
Forbes Asia reported on Wednesday that the Yoovidhya family increased their fortune by USD 2.6 billion (95.8 billion baht), reaching USD 36 billion (1.3 trillion baht). Red Bull’s revenue surpassed USD 11 billion (405.5 billion baht) last year, with global sales exceeding 12 billion bottles and cans.
The Chearavanont brothers, known for the Charoen Pokphand Group, fell to second place after nearly a decade at the top. Their wealth decreased from USD 34 billion (1.2 trillion baht) last year to USD 29 billion (1.1 trillion baht) this year, partly due to the declining value of their stake in Ping An Insurance in China, which reported a USD 2.7 billion (99.5 billion baht) loss last year.
Charoen Sirivadhanabhakdi of Thai Beverage remains in third place with an estimated wealth of USD 10 billion (368.6 billion baht), down USD 3.6 billion (132.7 billion baht) from last year.
The Chirathivat family holds the fourth position with USD 9.9 billion (364.9 billion baht), a 20% decrease from USD 12.4 billion (457.1 billion baht) last year. The family’s Central Group became the major shareholder in London’s Selfridges department store after raising its shareholding in November.
Energy and telecom tycoon Sarath Ratanavadi retains fifth place with USD 9.2 billion (339.1 billion baht), down from USD 11.3 billion (416.5 billion baht) last year.
Somphote Ahunai, CEO of Energy Absolute, saw his wealth drop by two-thirds to USD 995 million (36.7 billion baht), falling to 32nd place. His shares in the renewable energy and electric vehicle company declined due to debt concerns.
The combined wealth of “Thailand’s 50 Richest” fell by nearly 12% to USD 153 billion (5.6 trillion baht), attributed to a declining Stock Exchange of Thailand index and the depreciation of the baht, Forbes Asia stated. The full list is available at www.forbes.com/thailand.
by Willie Tan | Jul 15, 2024 | Bangkok Property Market Updates, Expat Living & Relocation
Prime Minister Srettha Thavisin announced on Sunday that he will sign an extension to the visa waiver on Monday, allowing citizens from 93 nations to enter Thailand without a visa or obtain a visa on arrival and stay for up to 60 days.
He expressed confidence that immigration and security agencies will smoothly implement the measures to screen foreign arrivals in the long term. “We prepared for visa waivers for travellers from China, India, and Kazakhstan with measures implemented last year,” he added.
To boost tourism and attract more tourist dollars, the Cabinet decided on May 28 to extend visa waivers to a total of 93 nations.
The 57 nations or regions that already had a visa waiver and can now receive a 60-day stamp on arrival include: Canada, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Indonesia, the Republic of Ireland, Israel, Italy, Japan, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Maldives, Mauritius, Monaco, the Netherlands, New Zealand, Norway, Oman, the Philippines, Poland, Portugal, Qatar, San Marino, Singapore, Slovakia, Slovenia, Spain, South Africa, South Korea, Sweden, Switzerland, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, the United States, Peru, Hong Kong, Vietnam, Saudi Arabia, Andorra, Australia, Austria, Belgium, Bahrain, Brazil, and Brunei.
The 13 nations whose citizens previously received a 30-day stamp on arrival and will now receive a 60-day stamp are India, Kazakhstan, Malta, Mexico, Papua New Guinea, Romania, Uzbekistan, Taiwan, Bhutan, Bulgaria, Cyprus, Fiji, and Georgia.
The six new nations or regions whose citizens now qualify for a visa waiver and a 60-day stay are China, Laos, Macau, Mongolia, Russia, and Cambodia.
The 17 new nations eligible for visas on arrival, receiving a 60-day stamp, include Guatemala, Jamaica, Jordan, Kosovo, Morocco, Panama, Sri Lanka, Trinidad and Tobago, Tonga, Uruguay, Albania, Colombia, Croatia, Cuba, Dominica, the Dominican Republic, and Ecuador.
