Can Thailand beat Malaysia and Singapore in the race to lure wealthy foreigners?

To give its economy a shot in the arm, the Thai government is looking to attract 1 million ‘wealthy global citizens’ to settle down in the next five years

It is considering an array of perks such as longer leases to draw them, but analysts are unsure how the scheme compares to those of its regional neighbours

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Foreign buyers own 30 per cent of condominiums in Pattaya, according to a property expert. Photo: Xinhua

Published: 8:00am, 13 Oct 2021Updated: 7:58pm, 13 Oct 2021

Thailand wants wealthy foreigners to settle down in the Southeast Asian nation after the pandemic, and is looking to lure them with possible perks including longer-term leases and tax remittances – but analysts are unsure whether the scheme can rival similar packages from the likes of Malaysia and Singapore.

The latest scheme, approved by the cabinet in September, is aimed at attracting 1 million “wealthy global citizens” within five years by issuing them special long-term resident visas, providing they meet a minimum investment or bond-purchase threshold.

The government hopes this category of migrant – as well as pensioners and high-skilled expatriates, including those looking to work from abroad – will generate a cash flow of 1 trillion baht (US$29.5 billion) by 2026, putting it on the pathway to economic recovery after its GDP slumped more than 6 per cent year as tourism ground to a halt amid the pandemic.

On Monday, Thai Prime Minister Prayuth Chan-ocha said vaccinated visitors from low-risk countries including China, Singapore, the United States and the United Kingdom can enter Thailand without having to quarantine, raising hopes that the Thai economy could get a boost in the last quarter.

This week, the Federation of Thai Industries, the Thai Chamber of Commerce and the Thai Bankers’ Association issued a joint GDP growth forecast for this year of between 0 per cent and 1 per cent.

Wealthy global citizens can qualify for the special visas by holding US$500,000 worth of Thai bonds or investments. They must maintain an annual salary or pension of US$80,000 for the past two years and hold assets worth a minimum of US$1 million.

Pensioners have the same bond and investment requirements, though the minimum is US$250,0000, along with an annual pension of US$40,000. If they do not buy bonds or invest in Thailand, their pension must be at least US$80,000.