Bangkok: Currently, the government is intensifying its crackdown on "nominee" business groups nationwide, particularly in major tourist cities that are key targets for foreign investment. Traditional methods of circumventing the law might involve falsely using Thai names to hold shares. However, multinational corporations have evolved to a more sophisticated level, employing "Thai nationals" as a key to acquire land, real estate, and operate integrated businesses. This prevents funds from reaching local Thais and poses a significant challenge to the economic structure and future national security.
According to Thai News Agency, in tourist areas like Phuket, Koh Phangan, and Koh Samui, the establishment and expansion of foreign businesses, particularly Jewish and Israeli investors, is being heavily questioned and criticized. However, looking through the eyes of experts and locals offers some interesting perspectives.
Dr. Lerpong Saryeed, a Middle Eastern scholar and expert on Islamic politics, observed that the expansion of religious centers such as "Shabad centers" in major Thai tourist cities mirrors the policies of many countries that often build places of worship while simultaneously controlling the business and trade networks of those cities. This has happened in several countries in Europe, such as Belgium, Poland, Portugal, and in Latin America. Regarding Thailand, Dr. Lerpong noted that the election of the 10 branches of Chabad was a strategic choice of locations, as they are all situated in major cities that are tourist destinations with high economic growth. These include 3 locations in Bangkok, 1 in Chiang Mai, 1 in Pai, Mae Hong Son, 1 in Phuket, and 4 in Surat Thani, specifically in Koh Samui and Koh Phangan.
It is noteworthy that the area surrounding Shabad is now lined with businesses owned by Israelis, and the use of services by their own nationals has created a monopolistic economic cycle, making it almost inaccessible to Thai people. Meanwhile, Mr. Kongsak Kuphongkorn, President of the Phuket Chamber of Commerce, viewed the economic and tourism aspects comprehensively, stating that the line between "promoting foreign investment" and "losing local economic sovereignty" needs careful consideration. He acknowledged that Phuket has received a significant amount of foreign investment, including from Jewish investors, but noted that Israeli tourists are also a key target group with direct flights driving the local economy.
Although perspectives on the influx of foreign capital differ, both academics and the private sector agree on a key point: Jewish investors or foreign capital groups possess high expertise in investment and pose a formidable competitor to local businesses. However, the crucial question isn't how intelligent or talented they are, but rather the "conditions and timeframe for obtaining Thai citizenship," which raises suspicions about whether the unusually rapid application process has created a legal loophole.
"I don't know which agency these foreigners used to apply for or naturalize their citizenship so quickly. For example, the granting of Thai citizenship to Israelis in 2017... I urge the security agencies, including the National Security Council, the Ministry of Foreign Affairs, and the Ministry of Interior, to investigate this matter urgently. This isn't just about Israel, but about all nationalities claiming sovereignty over Thai land," said Dr. Lerpong Saryeed.
A worrisome legal mechanism is that once a foreigner legally obtains Thai citizenship, they can register a company holding 51% Thai shares and then bring in another 49% foreign capital. This immediately gives the company "100% Thai ownership under the law," opening the door for them to acquire land, own real estate, and engage in businesses reserved for Thais without restrictions. Therefore, urgent consideration is needed to restrict certain rights of those who have obtained Thai citizenship, in order to maintain a balance and prevent foreigners from owning excessive land in Thailand that could negatively impact the original Thai population in the long term.
When "Thai citizenship" became a tool to unlock legal loopholes, the behavior in a major tourist city like Phuket changed completely. Data from the President of the Phuket Chamber of Commerce indicates that the Phuket real estate market has experienced exponential growth, particularly since the COVID-19 pandemic. Land valuations have increased significantly, by as much as three times, due to the influx of investors from around the world, including long-term residents from countries such as Russia, China, Poland, the Middle East, and Israel, who now have direct flights to Phuket.
However, the current government crackdown on nominees, while a necessary and drastic measure due to the long-standing problem of nominees, is causing concern among the private sector. It's impacting the investment climate and tourism, and most worryingly, it could ignite racial tensions and conflict in the area if not handled carefully, especially regarding Israeli investors and tourists. "We don't want this to be viewed as a matter of racial hatred, because foreigners also contribute to driving the economy. However, what we are concerned about is the use of nominees and the circumvention of laws in an irregular manner. Therefore, the government's crackdown measures must be targeted and thorough to avoid impacting tourism and sincere investment," - Mr. Kongsak Kuphongsakorn reiterated.
Conclusion: It's time for a reform before we lose our economic sovereignty. Welcoming investment and tourism is undeniably key to driving Thailand's economy... However, the line between "promoting transnational capital" and "allowing the fraudulent use of citizenship to seize economic sovereignty" is becoming a major national challenge for the government. If the government and security agencies cannot decisively resolve this issue, and continue to allow "Thai citizenship" to be used as a shortcut for foreign capital-whether Jewish or of any other nationality-to fraudulently and without strict oversight, the situation will worsen. Ultimately, the impact will not stop at local businesses losing their livelihoods, but will also mean that "economic sovereignty and national security" could be seized without the Thai people even realizing it.