The Thai government has insisted that the extension of land leases was done for the benefit of the nation and to attract foreign investments, according to Prime Minister’s office spokesman Major General Sansern Kaewkamnerd.
He said the amendment to the Lease of Immovable Property for Commercial and Industrial Purposes Act, which extends the leasing period limit of government land from 50 years to 99 years, has been done to attract foreign investors. The previous time limit was not attractive for big investments, he added, which required long payback periods.
He noted that the amendment to this regulation will increase the nation’s competitiveness0 when compared with other countries in ASEAN, such as Singapore and Malaysia, which allow 99 year leases, while in Vietnam leases can extend to 70 years, and to 50 years in the Philippines, Cambodia, and Myanmar.
The government will execute measures to prevent improper holding of land, ensuring leases will be provided only for investment and business purposes, and added the lease can be revoked at any time should the leaseholder violate the regulations.
The spokesman also again stressed this amendment has been done for benefits of the nation in the long run, and should not be considered as giving away Thai land to foreigners.
Image: © Tourism Authority of Thailand.