by Willie Tan | Jul 24, 2024 | News
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 $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.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Jul 23, 2024 | News
Ananda Development, a publicly traded company on the SET, sold shares in five serviced apartments, totaling 2.54 billion baht, to generate revenue in the second quarter. This decision came after several months of being unable to transfer condo sales to buyers from Myanmar.
Prasert Taedullayasatit, the CEO of Ananda’s property division, explained that many developers, including Ananda, have been unable to recognize revenue from condo purchases made by Myanmar buyers since April.
“These units, valued at billions of baht collectively, have been stuck at the Lands Department offices following the Myanmar government’s crackdown on Thai condo purchases by Myanmar nationals in April,” he stated.
Mr. Prasert highlighted that this situation would affect condo transfers and developers’ revenue in the second and third quarters of this year, as Myanmar buyers had emerged as a significant market for Thai condos.
The number and value of condo transfers to Myanmar buyers have been increasing and tend to be substantial, unlike purchases by local buyers. Meanwhile, the recovery of the major foreign buyer market in China has been slower than anticipated, Mr. Prasert noted.
In the first quarter of 2024, residential transfers in Greater Bangkok to Myanmar buyers surged by 333% to 2.1 billion baht, second only to Chinese buyers, who recorded 5.36 billion baht, an 8% decrease.
Ananda transferred residential units worth 3.34 billion baht in the first quarter, a 3% year-on-year decline. Of this, condo transfers amounted to 2.9 billion baht, a 10% drop, while low-rise house transfers doubled to 432 million baht.
The company’s transfer value to foreign buyers almost tripled to 1.2 billion baht from 485 million baht year-on-year. The proportion of foreign transfers surged to 36% from 14%, while transfers to Thai buyers dropped to 64% from 86%.
Ananda announced on Monday the sale of ordinary shares in five subsidiaries, each 51% owned by Ananda, for a total of 2.54 billion baht. The shares were sold and transferred on June 30, 2024, to Mitsui Fudosan Asia Development (Thailand) Co, which owned the remaining 49% of each subsidiary.
The buyer, a subsidiary of Japanese developer Mitsui Fudosan, has partnered with Ananda on more than 30 joint venture condo projects since 2013.
The five apartments sold include Ascott Thonglor Bangkok (451 rooms valued at 3.47 billion baht), Ascott Embassy Sathorn (393 rooms valued at 3.34 billion baht), Somerset Rama 9 (445 rooms valued at 2.5 billion baht), Lyf Sukhumvit 8 (196 rooms valued at 644 million baht), and Somerset Pattaya (324 rooms valued at 1.9 billion baht).
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by Willie Tan | Jul 22, 2024 | Events, News
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.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Jul 19, 2024 | News
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 center.
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.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Jul 18, 2024 | News
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.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
by wilbersuen | Jul 17, 2024 | News
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.
Source: Bangkok Post
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The editorial team at Invest Bangkok Property
