In the wake of criticism of its plan to allow wealthy foreigners to own a limited amount of land in Bangkok and Pattaya, the Thailand government canceled the move.
According to media reports, critics of the plan pointed out that the government move may lead to an increase in land prices, making it tough for the local people to own land in these areas.
They also contended that the sum of investment required to own land in the country was too small.
According to the plan, those who wished to own residential land ownership in these two cities needed to invest at least $1.04 million in the country for a minimum period of three years.
"The interior ministry has withdrawn the proposal ... to listen to opinion from all parties so that it is comprehensive," Reuters quoted a government spokesperson as saying.
Calling the plan "a delicate matter" Interior Minister Anupong Paochinda reportedly said more study was needed to understand the advantages and disadvantages of foreigners buying land in Thailand.
Reuters had earlier reported that with this scheme, the country intends to add $27.25 billion to its economy and boost investment.