Bangkok: The state must not neglect its territory to the point where it becomes a foreign colony. Following the Department of Business Development's crackdown on foreign nominees in key tourist destinations like Koh Samui and Koh Phangan, Dr. Sopon Pornchokchai, President of the International Real Estate Association, expressed concern that this situation is not new but a problem that has accumulated for 30-40 years and is escalating due to legal loopholes and policies that excessively benefit foreigners.
According to Thai News Agency, Dr. Sopon described the issue of "mutated tourists" who enter Thailand as visitors but find ways to settle and conduct business illegally. A common practice involves setting up companies with 49% foreign ownership, using Thai nationals as nominees for the remaining shares. This often includes foreign law firms collaborating and creating loan agreements that bind Thai nationals to prevent default. Additionally, tax evasion through cryptocurrency transactions means the government receives no revenue from these activities.
One major factor exacerbating the problem is the granting of "free visas" without thorough verification, allowing foreigners to engage in professions reserved for Thai citizens, like real estate agents or barbers. Dr. Sopon also opposed the policy of allowing foreigners to lease land for 99 years in the Eastern Economic Corridor (EEC) or proposed nationwide expansion, comparing it to "colonialism." He noted that countries like Vietnam, Laos, and Cambodia limit leases to 30-50 years, making Thailand's 99-year lease policy unnecessary from an investment perspective.
The social impact includes the rise of "no-entry zones for Thais," affecting business districts such as Ratchada-Huai Khwang and tourist spots like Pai and Koh Samui. Foreign-language signs in restaurants and businesses employing foreign workers have significantly reduced income for Thais. In some instances, organized crime or mafia groups control these areas, causing hardship and restricting locals from accessing their communities.
Dr. Sopon recommended several measures to the government to ensure Thailand benefits from foreign investment. These include strict law enforcement against Thai nominees and corrupt officials, real estate tax reform akin to Singapore and Hong Kong, establishing a minimum purchase requirement for foreigners, and supporting a "rights-based lease" system with a 30-year lease law sufficient for business needs.
In conclusion, while trade liberalization can be advantageous, it should be implemented within a framework that protects national interests. Dr. Sopon emphasized the importance of addressing these issues promptly to establish new standards before it's too late.