Pheu Thai revives 99-year leasehold law as Interior Ministry shift nears

A source at Government House has revealed progress on a key legislative amendment that would allow long-term land leases for the private sector—one of the flagship policies Pheu Thai has sought to advance since the beginning of its administration.

The draft bill had previously been submitted to the Ministry of Interior for revision and consultation with relevant agencies. However, it has remained stalled at the ministry for over a year.

During the previous coalition government, Pheu Thai had made inquiries to the Bhumjaithai Party, which then oversaw the ministry, but received no response or indication of support to move the bill forward.

The source added that with Pheu Thai now preparing to take charge of the Interior Ministry, the party intends to use the opportunity to revive and push through several pending legislative items. These include the draft law on Right over Leasehold Asset, which concerns long-term land leases for private use, with proposed amendments allowing leases of up to 99 years.

Deputy Interior Minister Theerarat Samrejvanich, currently serving as Acting Interior Minister, revealed that she has instructed senior officials at the Ministry to follow up on urgent issues and key pending legislation that require accelerated action.

She stated that while some matters could await the arrival of the new Interior Minister to proceed through formal channels, issues deemed urgent would be brought forward for immediate consideration. Regarding the draft law on the Right over Leasehold Asset, she noted that the ministry would reassess the submitted proposal to determine its level of urgency.

The proposed law would allow long-term leasehold rights over land and buildings, granting tenants usage rights similar to ownership for a fixed period as stipulated in a contract. Under current law, such rights generally do not exceed 30 years. Unlike standard leases, rights over Leasehold Asset can be transferred, mortgaged, or used as collateral in business transactions.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira earlier commented that if the bill is approved by the Cabinet, he is prepared to explain its details to Parliament. He emphasised that the essence of the law aligns with international investment norms: foreign investors do not necessarily seek to purchase land but want legal certainty to use it over the long term. The Right over Leasehold Asset model provides this by establishing a leasehold agreement rather than ownership.

The revised version of the law would extend lease terms from the current maximum of 30 years to up to 99 years.Pichai clarified that this does not amount to land sales but rather long-term leases that ensure investment confidence and security. When enacted, such agreements would be governed by clear contracts between the state and private entities.