Thailand has withdrawn a proposal allowing foreigners to buy up to one rai—the Thai equivalent of 0.4 acres—of land in Thailand, a government official said Tuesday, despite the cabinet’s previous approval of the plan.
Thailand’s Interior Minister Anupong Paojinda said the proposal had been removed from the cabinet agenda because it is a “sensitive” matter that requires additional review, Bangkok Post reported.
“We must take the matter back for review because it is sensitive. It must be reviewed to gauge the positive and negative effects on the economy and society,” Anupong told reporters.
The draft bill, previously approved in principle by the cabinet on Oct. 26, would allow foreigners to buy land in Thailand if they invest 40 million baht ($1.1 million) in securities or bonds over three years.
Thailand’s Deputy Prime Minister Wissanu Krea-ngam said that the Interior Ministry withdrew the proposed bill to solicit public opinion and decide whether to resubmit it to the cabinet over the next 15 days.
The draft regulation was aimed at wealthy expats, retirees, and digital nomads who want to reside in Thailand, as well as highly skilled professionals.
To qualify for the program, applicants must make investments in Thailand in the form of bonds issued by the Thai government, real estate or infrastructure funds, real estate investment trusts, legal entities, or enterprises promoted by the Board of Investment.
The scheme is expected to boost Thailand’s economy by 1 trillion baht ($26.5 billion) and investment by 800 billion baht ($21.2 billion), with an estimated revenue of 270 billion baht ($7.2 billion), according to local reports.
However, locals worry that it could trigger a surge in land prices and make it difficult for locals to buy land.
Tanit Sorat, vice chairman of the Employers’ Confederation of Thai Trade and Industry, welcomed the ministry’s move to withdraw the proposal and said that the required sum of investment was too small for wealthy foreigners.
Tanit said that locals are also concerned that the scheme would result in Chinese investors taking up more land in Thailand.
“They are also concerned about future land speculation and its possibility of opening doors to foreigners—especially Chinese businessmen who run ‘gray’ businesses in Thailand such as bars, massage parlors, and gambling dens—to buy vast land plots,” Tanit told Bangkok Post.
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