News Archives - Page 13 of 19

Thailand saw moderate activity last year, with subdued private investment and manufacturing virtually stagnating for the second consecutive year. Moreover, the death of King Bhumibol Adulyadej in October cast a cloud on consumer sentiment, especially due to an official year-long mourning period. However, there is a silver lining as recent indicators suggest a slight uptick in activity in Q4: exports rebounded strongly in November and manufacturing growth rose at a multi-year high, lifting the subpar annual performance. The political state of affairs is unlikely to gain momentum anytime soon: a recent request from new King Vajiralongkorn to amend the military draft constitution is expected to delay the elections planned for 2017 to 2018. However, the changes requested are not pivotal: they only represent a slight shift of power from the King to the yet-to-be-elected government.

February 16, 2019ZONEZI No commentsBusiness, News

Shareholder meetings are an important element in the management of Thai limited companies, since the authorized directors of the company must manage the company under the control of the meetings of the shareholders. In order to hold a meeting of the shareholders, a meeting has to be called according to the procedure defined in the Civil and Commercial Code. One of the procedures according to the Code is that a notification must be delivered to the shareholders.

Section 1175 paragraph one requires that an advertisement must be published in a local newspaper at least once before the date of the meeting no less than 7 days in advance and a notification must be sent by post with acknowledgment of receipt to all shareholders whose name appears in the shareholder registry no less than 7 days in advance of the date of meeting. However, for extraordinary meetings of the shareholders, the aforementioned procedure must be performed no less than 14 days in advance of the date of the meeting.

According to Section 1244, a notification shall be deemed to be delivered to a shareholder if it is delivered to him personally. Furthermore, if the notification has been delivered to the address of the shareholder that appears in the shareholder registry, the shareholder shall be deemed to have been duly notified.

According to Thai Supreme Court Decision No. 384/2506: “Section 1175 of the Civil and Commercial Code regarding notifications of a general meeting of the company only requires that a notification of the meeting be sent no less than 7 days. Therefore, where the Defendant, who is a company liquidator, has sent a notification by post no less than 7 days in advance of the meeting and Plaintiff, who is a shareholder, has received it, then it shall be deemed that Defendant delivered the notice correctly according to the law and it is not relevant as to what day Plaintiff actually received it.”

Furthermore, Section 1175 paragraph two requires that the time and location of the meeting be indicated in the notification, as well as the agenda for the meeting. If a special resolution is to be considered, then the substance of the resolution must be included in the notice.

According to Thai Supreme Court Decision No. 2644/2520 “a general meeting wherein a matter is considered outside of the agenda, a resolution passed by the shareholders to pay a debt which the shareholders themselves are the creditor and have a personal interest violates Section 1174 and 1175.”

Thai corporate law is complex. Foreigners who are in charge of managing a Thai limited company are advised to consult with competent Thailand lawyers.

February 16, 2019ZONEZI No commentsNews, Real Estate

There are 3 new Phuket housing projects designed for low income earners and those on financial assistance and reservations for units in these developments have been brisk, according to local media. Prices at the projects start at THB3.79 million and some of the homes will be completed and ready to move into by the end of 2018.

“The National Housing Authority (NHA) is creating 8 residential projects in 3 provinces, including Buriram, Phuket and Samut Prakan. In Phuket, there are 3 new projects. Firstly, ‘Phuket Thepkrasattri’, which is a 3-storey community housing project located near Laem Hin seafood in Koh Kaew. Each house is about 20 square meters,” says NHA Head of the Projects Pakum Noimanee to The Phuket News.

The Phuket Thepkrasattri project will have a total of 66 homes all but 9 of which have been reserved by buyers who qualified for the programme. The development will be finished sometime next year.

“The Phuket Thalang project, which consists of 19 3-storey townhouses, is divided into apartments and located in Srisoonthorn, beside the Phuket Community Housing Office. It is an extension of a pre-existing low income housing project,” says Pakum.

The apartments are 33 square meters in size and all units come with 1 bedroom and 1 bathroom. Prices start at THB620,000 and there are less than 50 units available for booking. The project will also be finished next year.

“The 3rd project in Phuket is the ‘Garden Ville Phuket By NHA’ comprising 2-storey townhomes. Each house is about 18.5 square meters and prices start from THB1.59 million. There are 354 total town homes in Garden Ville and about 200 have already been booked,” says Pakum.

The idea behind the programme is to help low-income Thais or those who are receiving financial assistance from the government afford housing. The NHA has developed similar projects in Phuket in the past, all of which have been successful with buyers.

February 16, 2019ZONEZI No commentsNews, Real Estate

Will buyers ever tire of the Land of Smiles?

For Australians, the phrase ‘the lucky country’ has strong resonance. The nickname, coined by author Donald Horne in his novel of the same name, has been used to describe the Antipodean nation’s weather, lifestyle and is often invoked to describe its good fortune from gold rushes to economic booms.

Despite its roots Down Under, the description could just as easily be applied to Thailand: a nation whose spectacular natural attributes, incredible cuisine and long-established cache as one of the world’s most appealing places to live has enabled its property market to ride out storms and setbacks that might have floored those in other countries.

“Thailand’s infrastructure, accessibility, and general reputation for being a laid-back leisure destination are still vastly superior to other neighbouring countries,” says Andrew Gulbrandson, research head at JLL Thailand. “While certain destinations within Thailand may become less popular, it’s difficult to envision a scenario where Thailand’s desirability as a place to invest substantially decreases.”

Indeed, the country’s reputation for being Teflon-coated when it comes to deflecting troublesome news, events and economic tidings is as resonant as ever. In August 2016, bombs exploded in the tourist hubs of Hua Hin and Phuket while last October saw the passing of King Bhumibol Adulyadej, the nation’s much revered monarch.

This year has, by Thai standards at least, been relatively light on potentially seismic events. However, the military-run government, in power since a coup in 2014, preside over an economy that continues to be lacklustre. The economy will expand 3.3 percent a year on average from 2017 to 2019, according to the World Bank, the weakest among eight developing Southeast Asian nations.

Given all this you could be forgiven for thinking that the country’s once-thriving real estate sector might be showing signs of lethargy, if not out and out fatigue. Not so, say analysts, experts and developers, pointing to booming demand for luxury property in the capital Bangkok and healthy interest from investors, both foreign and Thai, in popular secondary markets such as the paradise islands of Phuket and Koh Samui and the well-located beach resort of Hua Hin.

February 16, 2019ZONEZI No commentsNews

Author: Pharadon Heemmuden

Highlight

The market outlook for rubberwood exports is bright thanks to an increasing supply, as well as demand, especially from China, where the furniture industry is growing. Thai rubberwood is competitive in the global market due to its price and quality.
EIC sees increased potential for the local production of rubberwood furniture and other wooden products, which will help boost Thailand’s export value. Both the public and private sectors should join hands in research and development of new rubberwood products with an eye especially on design and branding.

February 16, 2019ZONEZI No commentsBusiness, News

The requirements and legal procedures involved in buying land in Thailand as a company (particularly with foreign shareholders) is quite complex. Siam Legal has therefore compiled this reference guide to help its corporate clients prepare the necessary documents and evidence required in order to avoid needless mistakes and costly delays when appearing before the Land Official for the transfer of ownership. The guide below can also generally apply to condominium transactions, except that foreign companies are not restricted from owning condominium units outright.

February 16, 2019ZONEZI No commentsNews, Real Estate

Foreigners cannot buy land in Thailand, only condominium units and apartments. Foreigners cannot make up more than 40% of the condominium’s unit-owners. However, a foreigner can buy a whole building, minus the land on which it is built.

In recent years, minor changes in Thai law have allowed nonresidents to explore the Thai real estate market. A foreigner can have a 30-year renewable lease, under which the buyer registers at the Land Office an option to renew the lease contract indefinitely, for further 30-year periods.

There are serious drawbacks, however. Lease renewals cannot be registered, and are not effective against a purchaser of the property. And the lessee cannot (without the lessor’s consent) sublease, sell or transfer his or her interest.

Another option is to set up a private limited company with mixed Thai and foreign ownership, the foreign ownership being 49% or less. Companies are allowed to own land. The foreign national can control the company by using a legal power of attorney from the Thai shareholders, handing control to the foreign directors, or through assigning greater voting rights to the foreigner partner/s. This is an effective and time-tested route, most commonly taken by foreigners. The help of a lawyer is very important.

Foreigners can also invest at least THB40 million (US$1,142,857) in a Board of Investment approved project. They will then be allowed to purchase up to 1 Rai (1,600 square meters) of land.

February 16, 2019ZONEZI No commentsNews, Real Estate

The luxury senior housing industry is dawning on the kingdom as more and more Thais retire in independence

Thailand is greying fast. The kingdom holds the highest share of elderly people of any developing nation in East Asia and Pacific, the World Bank reported. As it stands, 11 percent of the Thai populace, representing 7.5 million people, are aged at least 65 years. The figure in 1995 was 5 percent; by 2040, it will have increased to as much a fourth of the populace or 17 million people.

In any other market, the vintage of a populace would be a bonanza to property developers. But this is Thailand, land of multigenerational households; to capitalise on the astronomical growth of its geriatric demographic, one has to fight against a tide of ingrained mores.

As with many Asian countries, the notion of children booking their parents in retirement communities and nursing care homes was once unthinkable in the kingdom. If anything, empty nesters are loathe to leave their homes, many bequethed to them across multiple generations. Upwardly mobile children will simply hire private nurses and nursing aides as their caretaking proxies.

“Some people are getting around this by living in a condominium where they own units side by side,” said Kipsan Beck, managing director of the supertall MahaNakhon mixed-use project in Bangkok, at the first PropertyGuru Thailand Real Estate Summit. “But imagine that elderly people have some special needs. They need medical services on-call; they need slightly different furnishings from those for a 20- or 30-year old.”

Granted, the luxury senior housing market in the country remains “relatively small,” Jones Lang LaSalle reported in July. Slowly but surely, however, wealthy baby boomers are growing comfortable with the idea of active ageing, independent of family members.

“Senior living in Thailand is a key growth sector that we will see over the next 10 years,” said Andrew Gulbrandson, head of research and consulting at Jones Lang LaSalle Thailand.

Several consortia and joint ventures have made a headstart on such a captive market. In Chon Buri, the Sunplay Bangsaray project invites active retirees to live out their golden years in highly amenitised pool villas and condominiums alongside a 5,000-square-foot clubhouse. Along the beaches of Kamala in Phuket will rise MontAzure, a 454-rai mixed-use development whose central components include Kamala Senior Living, an upscale retirement community, as well as Thailand’s first Café del Mar.

Kamala Senior Living is geared toward leisure-oriented, high-net-worth property seekers of a certain age. “These are active retirees who would like to enjoy their lives,” said Jonathan Umali, director of project and asset management at Hong Kong’s ARCH Capital Management, a lead investor in MontAzure. “There are activities organised for residents, so that they have something to do every day. It’s like being in a cruise ship.”

February 16, 2019ZONEZI No commentsNews

The Thai government hopes a move to spark a shopping spree by offering tax breaks and cash handouts at the end of the year will improve economic stimulus in the fourth quarter.

The cabinet approved a tax break for shopping spending or spending on services during the festive season between December 14-31.

Bank of Thailand Governor Veerathai Santiprabhob said the tax breaks would be a smart short-term stimulus measure before major government projects were launched next year.

As such, they will have saved from 750 baht up to 5,250 baht in taxes for the 15,000 baht shopping spending, depending on their taxable incomes.

Veerathai said temporary factors affecting economic activities were lower agricultural prices, mainly rice, the crackdown on zero-dollar tours resulting in the decline in Chinese tourists and the mourning period for His Majesty the King.

The government needs a short- term stimulus measure to fuel |economic growth in the fourth quarter, he said.

The tax breaks should be a short- term tool because boosting spending will impact on future domestic demand, he said.

There is also a remedial measure to spur economic growth, with the government handing out Bt12.5 billion to the poor, or between Bt1,500 and Bt3,000 each person.

Mr Kobsak Phutrakul, assistant minister to the Prime Minister’s Office, said the government expected that the tax break would help boost spending during the festive season before year end.

No booze please

Shopping spending for the following items will not be eligible to tax break namely liquor, beer, tobacco, fuel oil and gas for vehicles and vessels.

Mr Kobsak said the measure would cost the government about 3.2 billion baht in revenue loss, but, on the other hand, would generate about 20 billion baht in circulation in the economic system or 0.2 percent of the GDP.

On top of that, the assistant minister to the Prime Minister’s Office claimed that the tax break would boost job creation and production until early next year.

Moreover, he said that the measure would encourage business operators to enter tax system which, in the long run, will benefit the government’s revenue collection in the future

Giving cash handouts to low income-earners

Three state-owned banks have started giving one-time cash handouts ranging from 1,500-3,000 baht to low income-earners in agriculture and non-farming sectors.

Government spokesman Lt-Gen Sansern Kaewkamnerd said over the weekend that he expected the payments to the qualified recipients to be completed before the year-end as New Year’s gift from the government.

He disclosed that there are altogether 6,981,000 qualified low income-earners who are eligible to receive the cash handouts to be wired directly into their bank accounts by the three banks, namely Krung Thai, Government Savings and Bank of Agriculture and Agricultural Cooperatives.

Those who earn less than 30,000 baht a year will receive 3,000 baht while those earn more than 30,000 baht but not exceeding 100,000 baht will get 1,500 baht. These one-time cash handouts are applicable for those in agricultural and non-agricultural sectors.

Source: Tax break on goods needed to fuel economy, says BOT chief

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February 16, 2019ZONEZI No commentsBusiness, News

The acquisition of land or a condominium unit in Thailand by a foreign government for official use, such as for use as an embassy or consulate, is not covered by any specific legislation. Therefore, assuming that a foreign government intended to acquire land or other immovable property in Thailand for official use, such an acquisition must be done by reciprocal agreement between nations, although not falling under the terms of Section 86 of the Land Code (as stated in Land Department Announcement No. 0610.4/893 issued on 2 August 1994). Furthermore, the Thai Cabinet has issued a number of resolutions on this matter which can be summarized as follows:

19 February 1958: According to this resolution where a foreign government wishes to purchase land for official use or for the use as a residence for their officials in an area not exceeding 15 rai, regardless of whether it is one plot or several, then the Land Department may proceed to allow the acquisition. If the amount to be purchased is more than the amount specified, then permission may sought from the Cabinet on a case by case basis.
1 April 1997: This resolution addressed the acquisition of land by social countires. Since the acquisition of land in Thailand by foreign governments had to follow the principle of reciprocity and since socialist governments do not allow foreign governments to acquire land in their countries, then accordingly Thailand could not allow socialist countries to purchase land in Thailand, but could only allow them to lease the land. However, due to the interest of maintaining stable relations with foreign countries, the Thai government would have to purchase the land from the private owner first and then enter into the lease agreement with the foreign socialist government.
An interesting issue arose when the Taiwan Economic and Trade Office in Thailand wished to purchase a land and building for official purposes. The Land Department considered the matter and concluded that the acquisition of land in Thailand by foreign government had to be done on the basis of reciprocity. However, since the Thai government had not recognized the sovereignty of Taiwan, the Thai government could not enter into any such reciprocal agreement with the Taiwanese government. Therefore, on 5 February 2000, the Cabinet allowed the Thai Economic and Trade Office to enter into an agreement with the Taiwan Economic and Trade Office regarding reciprocity in the purchase and acquisition of land for both parties.

The acquisition of land by foreigners is a complex legal subject in Thailand. Foreigners seeking to acquire land in Thailand are advised to consult with competent Thai legal counsel before proceeding.

February 16, 2019ZONEZI No commentsNews, Real Estate