Thailand could consider visa rule overhaul to lure investment, tourists

BANGKOK (BLOOMBERG)- Thailand's government could revamp immigration rules this year to make it easier for expats and long-term tourists to stay in the country, part of a strategy to boost investment and tourism revenue once the Covid-19 pandemic eases.

"Immigration rules are the key pain point" for foreigners working in Thailand, Mr Chayotid Kridakorn, 54, a former head of JPMorgan Securities (Thailand) who is leading a government task force to smooth investment into Thailand, said in a phone interview from Bangkok.

"We want to make it easier for foreigners to live and work in Thailand."

The authorities contend that making it easier for foreign companies to bring in skilled workers and for western retirees to stay in Thailand will boost the economy, which suffered its biggest contraction in more than two decades last year.

Gross domestic product growth will not return to pre-Covid-19 levels until the third quarter of next year, according to the Bank of Thailand.

A detailed framework to boost investment and tourism will be proposed to the government's economic panel within a month, Mr Chayotid said.

Plans include improving regulations on immigration, visa applications and work permits for foreign experts, including relaxing the requirement for foreign workers to report their whereabouts to the authorities every 90 days.

The framework will also include inducements for foreign investors such as corporate income-tax cuts, relaxed property-holding rules and incentives for retirees and start-up companies.

Mr Chayotid, an adviser to Deputy Prime Minister Supattanapong Punmeechaow, said he aims to attract one million retirees or pensioners to Thailand in the next few years, who he claimed could contribute as much as 1.2 trillion baht (S$51 billion) to the Thai economy each year.

Thailand has seen foreign direct investment tumble more than 50 per cent in the past five years to about 361 billion baht last year as investors were deterred by factors, including periodic political uncertainties, low growth prospects due to an aging society and a labour shortage.

Foreign tourist arrivals into Thailand plunged to 6.7 million last year, the lowest level in at least 12 years, after the country closed its borders to contain the pandemic.

Areas that need immediate improvement include visas and regulations that prevent Thailand from gaining more value from foreigners and foreign workers, Governor Sethaput Suthiwartnarueput said in a March speech that was posted recently on the central bank's website.

Mr Chayotid also said the task force will talk to foreign manufacturers in Thailand, especially in the car and electronic industries, about how to upgrade their technology or bring research and development functions to the country.

The team will recommend that the government offer more incentives and develop infrastructure for the use of electric cars that could encourage local producers to meet rising demand locally.

The team will approach new investors when Thailand reopens its borders later this year.

"If we don't fix this now, it will be too late to upgrade our investment," Mr Chayotid said. "We don't want to be left behind and die with old technology."