Thailand’s Department of Foreign Trade (DFT) has expanded its watch list of export products at risk of origin misuse from 49 to 65 items in an effort to tighten trade compliance and prevent circumvention of U.S. tariffs. The move comes amid concerns over a proposed 36 percent reciprocal U.S. tariff on Thai goods, potentially linked to misuse of Thai origin labels by foreign manufacturers.

The updated watch list, covering 224 tariff lines, includes sensitive products such as steel, aluminum, automobiles and parts, solar panels, medical equipment, and furniture. DFT Director-General Arada Fuangtong stated that discussions with U.S. customs prompted the revisions, and Thailand has requested more specific tariff codes to prevent overbroad classifications that could harm its export potential.

To ensure stricter oversight, the DFT will now be the sole authority issuing certificates of origin (C/O) for U.S.-bound exports listed on the watch list, taking over from other authorized bodies like the Thai Chamber of Commerce and the Federation of Thai Industries. Exporters will be required to pass origin verification checks to confirm that foreign-made goods are not falsely labeled as Thai products to avoid anti-dumping duties, Section 301 penalties, or Section 232 restrictions under U.S. trade law.

The DFT will present the final list to the Thai cabinet for approval, with ongoing monitoring and adjustments expected. [Bangkok Post]

The Association of Digital Television Broadcasting (ADTEB) has called on Thai regulators to clarify their plans for the future of the digital TV sector, as existing licenses are set to expire in 2029. During a recent meeting with the Senate Committee on Information Technology, Communications and Telecommunications, ADTEB representatives expressed concern over the lack of a clear policy from the National Broadcasting and Telecommunications Commission (NBTC).

ADTEB President Suparp Kleekhajai criticized the transition from analog to digital broadcasting as a failure, noting that 24 channels initially paid more than THB 50 billion (USD 1.5 billion) for licenses, and have since incurred operating costs exceeding THB 100 billion (USD 3 billion). Today, only 15 operators remain, and the NBTC has yet to ensure widespread accessibility for viewers.

The group also opposed NBTC’s earlier proposal to auction the 3500MHz frequency band—currently used for satellite TV—arguing that telecommunications operators already control sufficient spectrum. ADTEB warned that auctioning the 3500MHz band would jeopardize satellite broadcasting.

The Senate committee agreed that a resolution on license renewal must be finalized before 2026 to give stakeholders time to adapt. ADTEB is urging continued use of the 3500MHz band and a fair, transparent licensing strategy to support the long-term viability of the industry. [Bangkok Post]

The Senate Committee on Natural Resources and Environment is advocating for a new ministerial regulation that would offer tax reductions on land and buildings, aiming to discourage deforestation by landowners trying to avoid idle land taxes.

Committee chairman Cheewaphap Cheewatham stated that since the enforcement of the 2019 Land and Building Tax Act, some landholders have begun clearing trees—especially perennial species vital to ecosystems—to avoid being taxed at the higher rate applied to unused land. These trees often provide habitats for wildlife and contribute to climate change mitigation.

The Ministry of Finance has acknowledged the problem and, in coordination with relevant agencies, issued a ministerial regulation through the Department of Marine and Coastal Resources that exempts mangrove areas with tree planting from being taxed as idle land.

The Senate committee is now pushing for the Ministry of Finance and the Royal Forest Department to extend similar exemptions to cover inland forests as well. The goal is to enact the regulation swiftly in order to protect Thailand’s natural resources and ensure long-term environmental sustainability. [nbt connext]

Health experts and academics in Thailand are urging the government to replace its current two-tier cigarette tax system with a single-rate structure, as recommended by the World Health Organization (WHO). The WHO has recommended a flat 40 percent tax rate and retaining the per-cigarette levy.

The current system imposes a 25 percent excise tax on cigarette packs priced at or below THB 72 (USD 2.16) and 42 percent on more expensive packs, plus an additional THB 1.25 (USD 0.038) per cigarette. Critics argue that this structure has failed to reduce smoking rates, curb the illicit cigarette trade, or sustain tax revenue. Revenue fell from THB 64.2 billion (USD 1.93 billion) in 2021 to THB 51.24 billion (USD 1.54 billion) in 2024—the lowest in 15 years.

Analysts note that Thailand’s smoking rate dropped significantly under the single-rate system in place before 2017, during which revenue rose steadily. Since the shift to the two-tier system, smoking rates have stagnated and revenue targets have been missed.

Experts warn that a new proposal to move to a three-tier system would reduce cigarette prices even further, helping foreign producers gain market share and undermining anti-smoking efforts. They argue that lowering prices through complex tax structures will likely increase consumption and call instead for stronger enforcement against illicit cigarette sales. [Bangkok Post]

Public Health Minister Somsak Thepsutin has defended the government’s initiative encouraging doctors—especially in state hospitals—to prescribe herbal medicines for common illnesses, emphasizing that the move is a recommendation, not a mandate. The goal, he said, is to reduce reliance on imported pharmaceuticals, cut healthcare costs, and build trust in Thai traditional remedies.

Hospitals and clinics promoting herbal medicines may receive financial support through a National Health Security Office (NHSO) fund, which allocates around THB 1 billion (USD 29 million) annually for the development and promotion of Thai traditional medicine.

However, some doctors have expressed concern over the policy, citing the lack of scientific evidence for many herbal remedies, potential treatment delays, and higher prices for certain herbal options due to supply limitations. In response, the Department of Thai Traditional and Alternative Medicine assured that 44 producers can meet growing demand, and that key herbal treatments are already included on the national essential medicines list for five common ailments: flu, muscle pain, constipation, flatulence, and hemorrhoids.

To address resistance among unfamiliar doctors, hospital information systems now include detailed prescription guidelines for herbal medicines. A nationwide survey is planned to gather physician feedback and guide future promotion strategies. [Bangkok Post]

Thailand ranks 10th among the top 25 emerging markets for foreign direct investment (FDI) in Kearney’s 2025 FDI Confidence Index, and fifth in terms of investor optimism, signaling sustained appeal despite a volatile global environment. While it dropped one spot from 2024, Thailand remains one of Southeast Asia’s top destinations for investment.

The Kearney survey highlights Thailand’s skilled workforce (34 percent), ease of doing business (24 percent), and natural resources (24 percent) as leading reasons investors are drawn to the country. Although new U.S. tariffs and existing regulatory challenges may weigh on key sectors such as electronics, machinery, and automotive, Thailand's fundamentals remain strong.

Kearney emphasized that continued innovation, talent development, and sector-specific investment incentives will be vital for Thailand to stay competitive amid increasing FDI competition. Across the Asia-Pacific region, investor sentiment remains generally optimistic, with 82 percent of regional investors planning to increase FDI in the next three years.

The survey also points to rising concerns over global commodity prices, tightening regulations, and geopolitical tensions. Nonetheless, Thailand, alongside Malaysia, Vietnam, and the Philippines, continues to rank among the top 15 in Asia-Pacific for investment prospects. [Bangkok Post]

Thailand’s government has announced plans for all government units to fully adopt digital systems by 2026, backed by a projected investment of THB 500 billion (USD 14.7 billion) in digital infrastructure. The move is part of a broader effort to accelerate national development through artificial intelligence (AI) and digital transformation.

Following the inaugural meeting of the National AI Committee on May 1, chaired by Prime Minister Paetongtarn Shinawatra, officials emphasized that AI integration is crucial to reviving Thailand’s sluggish growth and enhancing global competitiveness. The committee will oversee the implementation of Thailand’s National AI Strategy and Action Plan (2022–27), focusing on AI infrastructure, talent development, and governance.

Key goals include training 10 million AI users, producing 90,000 professionals and 50,000 developers within two years, and building infrastructure such as cloud systems, data centers, and GPUs. The government also plans to establish a national data bank and open-source AI platforms like OpenThaiGPT.

AI applications will be prioritized in healthcare, tourism, and agriculture to boost efficiency, improve public services, and drive economic growth. Around THB 10 billion (USD 294 million) of the total budget is earmarked for AI-specific initiatives in 2025–26. Tax incentives, public-private partnerships, and centers of excellence will also support AI adoption and responsible deployment.

[Bangkok Post]