by Willie Tan | Jul 24, 2024 | Bangkok Property Market Updates, Expat Living & Relocation, Legal, Tax & Due Diligence
On July 23, a deputy prime minister announced that Thailand would move forward with legislating marijuana for medical use, signalling a reversal from previous intentions to re-criminalise the plant. This marks another shift in the government’s uncertain stance on cannabis. In 2022, Thailand became one of the first Asian nations to decriminalise marijuana without establishing clear laws or regulations, leading to a surge in recreational use and the emergence of numerous cannabis cafes and retailers, raising public concerns about potential misuse.
Deputy Prime Minister Anutin Charnvirakul, a key advocate for marijuana liberalisation, stated that Prime Minister Srettha Thavisin has now endorsed legislation as the appropriate course of action. Anutin thanked the prime minister for considering and deciding to proceed with legislative action.
The government continues to prohibit recreational cannabis use, and Prime Minister Srettha, from a different political party, had previously suggested re-criminalisation, with allowances for medical and research purposes. The legislation will be debated in parliament, where a draft law already exists, according to Prommin Lertsuridej, the secretary-general to the prime minister. The determination of cannabis as a narcotic will be up to the legislative body.
A draft cannabis law had been presented to the legislature under the previous administration, but parliament was dissolved before it could be voted on. It remains uncertain whether actions will be taken to restrict recreational cannabis use, as advocated by Prime Minister Srettha. The domestic marijuana retail sector in Thailand is rapidly growing, with projections estimating it could reach up to USD 1.2 billion by 2025.
The Bhumjaithai Party, led by Anutin and the second largest in the ruling coalition, has promoted the use of marijuana for health and economic purposes but officially does not support recreational use and opposes re-criminalisation. Nattabhorn Buamahakul, managing partner at Vero Advocacy, a government affairs consultancy, noted that the latest policy shift suggests improved coordination among coalition parties on the complex issue of cannabis compared to last year when the government was formed.
by Willie Tan | Jul 22, 2024 | Bangkok Property Market Updates, Infrastructure & Urban Development, Legacy Events
The Laos-Thailand cross-border passenger train service has officially commenced, operating between Krung Thep Aphiwat Central Station in Bangkok and Khamsavath Railway Station in Vientiane.
An opening ceremony held in Vientiane on Saturday was attended by Lao Deputy Minister of Public Works and Transport, Saysongkham Manodham, Thai Deputy Minister of Transport, Surapong Piyachote, and representatives from both countries.
The inaugural train departed from Krung Thep Aphiwat Central Station on Friday, arriving at Khamsavath Railway Station on Saturday, completing the 12-hour journey.
During the ceremony, Hinphet Lakhonevong, deputy director of the railway department under the Lao Ministry of Public Works and Transport, stated that the new train service will facilitate travel for citizens of both nations, boost trade, investment, and tourism, and strengthen connectivity between Laos, Thailand, and the Greater Mekong Subregion countries.
Thai Deputy Minister of Transport Surapong Piyachote emphasized that the new service will enhance convenience for the people of Thailand and Laos, fostering greater exchange between the two nations.
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.
by Willie Tan | Dec 28, 2023 | Foreign Buyer Guides
When pursuing the acquisition of a condominium unit in Thailand, foreign buyers should adhere to the following constructive guidelines to facilitate a seamless transaction:
Ownership Allocations
- Foreign ownership is capped at 49% of the total condominium area.
- Funds for the purchase must be remitted from abroad to a designated bank account in Thailand.
Payment Procedures
- Foreign buyers must initiate fund transfers to receive a “Foreign Exchange Transaction” (FET) certificate, crucial for both the Land Office transfer and potential future remittances.
- Any foreign currency is acceptable but must be transferred as foreign currency and exchanged into Thai Baht by a local Thai bank.
Documentation Requirements
- Foreigners must furnish proof to the Department of Lands, demonstrating that funds have been remitted from overseas in foreign currency.
Remittance Specifics
- Remittances must precisely match the purchaser’s name on the contract.
- Fund transfers must occur in foreign currency and explicitly state the purpose of the remittance.
Total Remittance Considerations
- Ensure that the total remittance, as detailed in the FET forms, meets or exceeds the amounts stipulated in the Sale and Purchase Contract, covering reservation, agreement signing, installments, and the transfer price.
Developer Account Option
- In the absence of a Thai bank account, funds can be directly remitted to the developer. The developer, as the beneficiary, will obtain the FET on behalf of the buyer.
Documentation Importance
- Either the FET or a credit note is crucial for evidencing fund remittance at the Department of Lands.
- Failure to provide these documents will hinder the registration of ownership.
Payment Account Details
- Utilize the provided Kasikorn Bank account details for fund transfers, ensuring adherence to the specified instructions.
Foreign Exchange Transaction Process
- Follow precise instructions during the FET process, including matching the remitter’s name with the purchaser’s, transferring funds as foreign currency, and stating the purpose clearly.
Debit Advice Submission
- After each remittance, promptly submit a debit advice via fax or email to the sales office for efficient record-keeping.
Payment Adjustment
- Anticipate adjustments due to currency conversions; these will be reconciled in the final payment upon ownership registration.
Ownership Transfer Details
- Before ownership transfer, the developer will communicate the amounts due, including the final adjusted payment, transfer fee, and other associated costs.
This is a brief guide on the overall purchase process. We conduct regular webinars where we can share various topics in more depth. Also, we welcome you to join our quarterly Bangkok Property Tour where we visit potential launches and explore exclusive great deals. Feel free to leave any questions or comments below and we see you in the new exciting year.
by Willie Tan | Nov 27, 2023 | Bangkok Property Market Updates
Driven by a desire for his sons’ return, PM Srettha aims to amplify the government’s broader agenda for a prosperous Thailand.
His appeal to his sons abroad serves as a heartfelt connection underlying a larger mission. This personal approach intends to resonate with Thai expatriates globally, fostering a collective aspiration to reconnect with their home country.
During a formal address to the Thai community in the United States, the 61-year-old Prime Minister outlined a roadmap to entice skilled professionals back to Thailand. Central to this strategy is the Land Bridge, a significant project connecting Ranong province to Chumphon. PM Srettha views this infrastructural endeavor not only as a physical link but as a means of economic revival.
The Land Bridge initiative is envisioned as a catalyst, propelling Thailand into a new era of economic prosperity. It promises not just infrastructure development but also an improved quality of life, making the idea of returning more appealing for skilled expatriates.
The Bangkok-born PM emphasized the government’s steadfast dedication to enhancing Thailand’s global standing, citing significant projects like the Land Bridge as evidence of the nation’s commitment to international competition, as reported by Thailand Business News.
Furthermore, PM Srettha highlighted Thailand’s commitment to addressing global challenges during the APEC Economic Leaders’ Retreat. This includes a focus on multilateralism, climate change initiatives, and the promotion of the Bio-circular and Green (BCG) Economy. This commitment signifies not only economic progress but also a dedication to a sustainable and environmentally friendly future.
In related news, the PM engaged with Thai students at Stanford University, encouraging them to consider returning to work in Thailand. He expressed optimism about leading companies investing in the nation and offering employment opportunities in the future.
“In the upcoming period, the establishment and expansion of reputable businesses in Thailand would facilitate the return of students residing overseas, presenting distinct advantages. The recent visit to Stanford University, renowned globally for its academic excellence, aimed to underscore the government’s earnest commitment to catalyse substantial investments.
“This endeavor intends to generate employment prospects, encouraging Thai students abroad to come back and play a pivotal role in the nation, thus securing a brighter future for Thailand.
“The government’s role is to instill in students the promising prospects Thailand offers. We endeavor to comprehend and persuade students studying abroad to consider returning to contribute to Thailand’s workforce. Should numerous reputable companies choose to establish and expand their operations in Thailand in the near future, it would encourage the return of students residing abroad, resulting in advantageous outcomes.”
The prime minister’s visit to Stanford University aimed to emphasize the government’s authentic commitment to fostering substantial investments, consequently creating job opportunities for Thai students abroad, as reported by Sanook.
“We aim to demonstrate that this government genuinely seeks to encourage substantial investments that will provide job opportunities for Thai students abroad, enabling them to return and play a crucial role in the nation, ensuring a more promising future in Thailand.”
by Willie Tan | Nov 10, 2023 | Bangkok Property Market Updates, Developer Watch, Expat Living & Relocation
CapitaLand Investment (CLI) and Pruksa Holding (PSH), Thailand’s prominent real estate entity, have disclosed the inception and successful initial closure of the CapitaLand Wellness Fund (C-WELL), a pioneering real estate fund centered around wellness and healthcare. In a collaborative effort, CLI and PSH have committed an initial equity investment of USD 350 million, aiming for a target equity size of USD 500 million. An option to expand this equity to USD 1 billion exists, with a projected asset value of USD 2.9 billion upon full deployment.
C-WELL represents the second collaborative venture between CLI and PSH, following the introduction of the CapitaLand SEA Logistics Fund the previous year. Positioned as a Southeast Asia-focused value-add fund, the newly established fund will concentrate initially on Singapore, Thailand, and Malaysia. Its investment focus encompasses single- or mixed-use assets within the wellness spectrum, encompassing residential, lodging, senior living, clinics, medical suites, and hospital facilities, along with wellness and lifestyle-oriented living solutions.
Additionally, the fund will allocate resources for strategic development opportunities in the broader Asia Pacific region. C-WELL adopts an operator-agnostic approach to investment, ensuring broad accessibility and diversity among its user base.
C-WELL’s primary objective is to meet the increasing needs of aging populations by developing purpose-built environments that foster wellness, comfort, and an elevated quality of life. This is particularly pertinent as both Thailand and Singapore are anticipated to transition into “super-aged” societies, with the senior population aged 65 and above projected to exceed 21% and 24%, respectively, by 2030.
In alignment with its asset-light strategy, CLI will maintain a sponsor stake in C-WELL, contributing to its funds under management and fee-related earnings, according to Patricia Goh, CLI CEO of Southeast Asia Investment. Meanwhile, Uten Lohachitpitaks, CEO of PSH Group, highlights the company’s commitment to elevating the lives of the elderly through multi-sectoral and community-level care initiatives in purpose-driven spaces. He emphasizes that the partnership with CLI is more than a mere investment, underscoring their dedication to redefining standards for wellness-focused real estate where individuals can thrive.
by Willie Tan | Oct 3, 2023 | Bangkok Property Market Updates, Investment Analysis
The World Bank has reduced its economic growth predictions for Thailand for both the current year and 2024 due to expectations of a decline in the country’s exports caused by a decrease in global demand. The main drivers of economic growth in Thailand are tourism and private consumption.
According to the World Bank’s East Asia and Pacific Regional Economic Outlook in October 2023, Thailand’s economic growth forecast for 2023 has been revised from 3.6% to 3.4%. Additionally, the projection for 2024 has been lowered by 0.2 percentage points. It now stands at 3.5% instead of the previous estimate of 3.7% in April.
Exports
The World Bank anticipates a 2.1% contraction in Thailand’s goods exports in 2023, measured in US dollars, primarily due to reduced demand from major advanced economies. Furthermore, economic growth in the second quarter of this year declined more than expected, reaching 1.8% on a year-on-year basis.
Political outlook
The prolonged process of forming a new government is also expected to delay both public and private investments. The GDP growth outlook for 2023 and 2024 hinges on the recovery of the tourism sector and robust private consumption. Foreign tourist arrivals are projected to return to pre-pandemic levels by the end of 2024.
The World Bank also predicts that Thailand’s economic growth will be 3.3% in 2025.
Debt and Inflation
Moreover, the bank forecasts headline inflation of 1.5% in 2023, which is lower than most emerging market economies. This is due to lower energy prices and the continued implementation of price controls. However, there are still upward risks to core inflation due to increased consumption and higher global food prices.
With the slow progress in fiscal consolidation due to extended energy subsidies, Thailand’s public debt is expected to remain above 60% of GDP until the end of 2023. The current account balance is projected to shift from a deep deficit over the past two years to a positive position in 2023.
The decrease in inflation is expected to alleviate some pressure on households. The expansion of the state welfare card program is anticipated to contribute to poverty reduction in 2023.
According to World Bank East Asia and Pacific vice-president Manuela V. Ferro, Thailand’s household debt ratio, which stands at 90.6% of GDP, is a more significant concern than public debt. Public debt is projected to be 60.2% of GDP in 2023, decreasing to 59.6% in 2024. It is expected to further decline to 59.5% in 2025.
As a result, the poverty rate will decline to 9.1% in 2023. It will continue to decrease in 2024 and 2025.
The World Bank has noted that the region’s growth remains higher than that of other emerging markets and developing economies. The East Asia Pacific region is expected to grow by 4.6% in 2023, with China’s growth projected at 5.1% in the same year.
Mr. Ferro emphasized that over the medium term, maintaining high growth in the region will necessitate reforms, particularly in the services sector. To sustain industrial competitiveness, diversify trading partners, and enhance productivity in areas such as retail, finance, education, and healthcare.
by Willie Tan | Aug 21, 2023 | Bangkok Property Market Updates, Expat Living & Relocation, Investment Analysis
In the April-June quarter, Thailand’s economy expanded by around 3.1%, a rise from the previous quarter’s growth of 2.7%. This upswing is attributed to the increased influx of foreign tourists, as predicted by a median survey of 21 economists.
Quarterly calculations indicate that the gross domestic product (GDP) growth, when seasonally adjusted, is projected to be approximately 1.2%. This marks a slowdown compared to the preceding quarter’s growth of 1.9%, as indicated by a smaller set of forecasts gathered between August 14 and 17 in a Reuters poll.
Although Thailand’s economy, which heavily relies on tourism, is anticipated to exhibit gradual improvement, the number of visitors remains significantly lower than the levels seen before the Covid-19 pandemic. The projection for this year suggests that Thailand might welcome around 29 million tourists, a decrease from the 40 million visitors recorded in 2019, the year before the pandemic hit.
As of August 13, the Tourism and Sports Ministry reported a total of 16.47 million foreign tourists visiting Thailand from January, with a total expenditure amounting to 690 billion baht (equivalent to USD 19.48 billion).
Exports, which play a crucial role in driving growth, have been contracting since October 2022, reflecting subdued global demand, particularly from China, Thailand’s primary trading partner.
Chua Han Teng, an economist at DBS, noted that the ongoing recovery in foreign tourism, including returning visitors from China, along with resilient private consumption, were the pillars supporting the expansion of the economy. However, the decline in merchandise exports, although stabilizing, continued to impede overall growth, thus preventing a more robust improvement in the second quarter of 2023, due to the challenging global economic environment.
The growth forecast for the year shows an average of 3.7%, aligning with the estimate from the Bank of Thailand (BoT). Additionally, a separate Reuters poll indicated that growth is expected to reach 3.8% in 2024.
