SURAT THANI, Thailand — A growing crackdown on illegal schools and foreign communities on Koh Phangan has triggered wider concerns about governance, with a local developer alleging the island is slipping into what he describes as a “lawless” system driven by nominee business networks and weak enforcement.
In an interview Preecha Thongyad said recent raids — including a high-profile case involving an unlicensed school — represent only “the tip of the iceberg” of deeper structural changes affecting the island’s population and economy.
He pointed to the school as a key indicator of demographic shifts, claiming that out of just over 100 students, 89 were Israeli nationals. According to him, this reflects a broader trend in which foreign nationals are no longer just tourists but are settling long-term, building businesses and forming established communities.
Preecha estimated that Israeli nationals now make up 60–70% of the foreign population on Koh Phangan, alongside smaller groups from Russia and Ukraine, though these figures have not been officially verified.
A central concern raised in the interview is the alleged use of nominee structures, where Thai nationals hold majority shares in companies on paper while foreign operators retain actual control. He also claimed that some listed Thai shareholders may be unaware their identities are being used.
Beyond business structures, Preecha described what he alleged to be facilitation networks involving certain officials, enabling land acquisition, licensing, and construction that may not comply with zoning regulations — particularly in green zones where building density is legally limited.
He specifically referenced the establishment of Jewish religious centers known as “Chabad”, alleging that intermediaries linked to state systems helped secure land, permits, and construction approvals. These claims have not been independently confirmed, and no official findings have been released regarding wrongdoing in these cases.
According to Preecha, development patterns on the island often exceed legal limits, citing examples where multiple villas are built on plots that should allow far fewer structures, sometimes without adequate infrastructure.
He also raised concerns about economic displacement, saying local residents are increasingly losing access to traditional livelihoods. Sectors such as restaurants, transport services, and accommodation are, he claims, being dominated by foreign-run operations.
Additional practices highlighted include subleasing models, where foreign nationals rent cars or properties from Thai owners and then operate services or re-rent them within their own communities, often coordinated through social media platforms.
“The locals are being pushed out,” he said, describing a situation where resources and opportunities are increasingly concentrated within foreign networks.
Preecha further described Koh Phangan as potentially the most expensive place to live in Thailand, with property prices and living costs rising to what he called “distorted” levels, resembling a speculative bubble.
In response, he said he has begun developing housing projects aimed at Thai workers who can no longer afford rising rents, driven in part by foreign demand and investment.
Despite recent enforcement actions, Preecha argued that targeting individuals is insufficient. He called for authorities to address what he described as root causes — including alleged corruption and systemic weaknesses within enforcement agencies.
“If you don’t deal with your own system, the problem will repeat,” he said, urging action against those facilitating illegal activities.
He cited cases such as Lam Son in Sri Thanu — a 119-rai public land area reportedly used for illegal resort operations despite court rulings — and Koh Raham, where land reclamation projects have allegedly taken place.
Despite concerns over speaking out, Preecha said he is willing to confront the issue publicly.
“I will speak openly. If something is wrong and damaging society, I will not accept it,” he said.
