Thailand’s Ministry of Public Health, currently under the ruling Pheu Thai Party of Prime Minister Paetongtarn Shinawatra, has announced plans to reclassify cannabis as a narcotic and restrict its use strictly to medical purposes.

The move will require individuals to present a doctor's prescription and medical certificate when purchasing cannabis. New regulations will also mandate the presence of medical personnel at licensed cannabis shops, with repeated violations leading to license revocation. A formal grace period will precede enforcement.

The decision follows escalating political tensions and comes just days after the Bhumjaithai Party, until then the second-largest party in the coalition, withdrew from the coalition government. Bhumjaithai, which previously controlled the Health Ministry, was the main architect behind cannabis decriminalization in 2022, having removed the plant from Category 5 of the Narcotics Code during its tenure in the Prayut Chan-o-cha administration.

The current reclassification effort marks a renewed push by Pheu Thai, whose earlier attempt under Paetongtarn’s predecessor, former Prime Minister Srettha Thavisin, had stalled due to coalition constraints.

Against this backdrop, Health Minister Somsak Thepsuthin rejected allegations that the move is politically motivated, describing the cannabis policy as a long-standing regulatory gap now being addressed. However, Bhumjaithai has accused the ministry of negligence and is still advocating for its stalled Cannabis-Hemp Bill, which it argues would enable responsible medical regulation. [Bangkok Post 1] [Bangkok Post 2]

Thailand’s Digital Economy and Society Ministry is set to require all government agencies to implement multi-factor authentication (MFA) for accessing official systems, in a bid to strengthen national cybersecurity and curb rising cyber threats. The move follows a major spike in data leaks—5 million usernames and passwords were compromised in 2025, up from 80,000 the year before—largely attributed to the use of pirated software.

The National Cyber Security Agency (NCSA) has been tasked with drafting the MFA mandate for cabinet approval. Once endorsed, the NCSA will coordinate with the Interior Ministry to enforce the requirement and offer guidance to government agencies. Proposed methods include the use of one-time passwords, authenticator apps, and the ThaID identity verification app, which already has 17 million users and enables secure access without extra cost.

NCSA officials warn that many current government login systems are vulnerable, with some administrator credentials even sold on the dark web. Such breaches threaten critical infrastructure and undermine public trust in digital services.

The MFA policy is part of broader efforts to upgrade Thailand’s cyber resilience. This includes expanded training programs, strategic cooperation with global firms like Palo Alto Networks, and efforts to implement a national cloud security framework under the “Cloud First” policy. The Thailand National Cyber Academy recently completed a nationwide training initiative with over 13,000 participants, targeting personnel responsible for critical infrastructure and regulatory oversight.

However, despite these efforts, Thailand's cybersecurity maturity remains low. According to Cisco’s 2025 Cybersecurity Readiness Index, only 7 percent of Thai organizations are adequately prepared to deal with modern threats—down from 9 percent last year. The report also highlighted a major knowledge gap in AI-related threats, with less than half of organizations confident in their staff’s ability to identify and respond to attacks leveraging artificial intelligence. [Bangkok Post]

Thailand is facing mounting energy security concerns amid rising tensions in the Middle East, particularly Iran’s parliamentary move to potentially close the Strait of Hormuz—a strategic waterway through which one-third of Thailand’s energy imports transit.

According to the Thailand Development Research Institute (TDRI), the closure—if ratified by Iran’s Supreme National Security Council and supreme leader—could drive global oil prices above USD 100 per barrel and severely disrupt supply chains. Thailand currently imports around 30 percent of its liquefied natural gas (LNG) from the Middle East, leaving its power sector especially vulnerable.

In response, the Thai government is intensifying mitigation efforts. The Energy Ministry has reaffirmed its commitment to capping fuel and electricity prices, while considering excise tax reductions on diesel, gasoline, and gasohol. The Oil Fuel Fund is already subsidizing retail prices, and strategic oil reserves currently cover 60 days of consumption. Officials may increase this reserve if conflict escalates further.

Electricity tariffs, capped at THB 3.99 per unit, are putting financial pressure on state-owned energy enterprises such as PTT and the Electricity Generating Authority of Thailand, which must absorb the growing cost differentials. The government has also launched contingency talks with the Finance Ministry to adjust fuel taxation thresholds if crude oil prices exceed USD 80 per barrel.

To reduce long-term exposure, TDRI has urged accelerated investment in domestic clean energy capacity, alongside structural reforms including the deployment of energy storage systems, smart grid infrastructure, and demand-response technologies. The think tank also recommends establishing a formal Strategic Petroleum Reserve (SPR) to extend the country’s crisis buffer beyond the current 60-day threshold.

Experts warn that Thailand’s reactive posture is unsustainable. The current crisis, they argue, underscores the need for a systematic energy resilience strategy that balances security, affordability, and sustainability in the face of growing geopolitical and climate-related shocks. [Bangkok Post] [The Nation]

Thailand’s financial system faces minimal risk from escalating tensions with Cambodia, according to a new report by Kasikorn Research Center (KBank Research)—the economic analysis unit of Kasikornbank, one of Thailand’s largest commercial banks. The report assesses financial linkages between the two countries and concludes that overall exposure remains low across money transfers, investments, and banking operations.

In terms of cross-border payments, most trade between Thailand and Cambodia is settled in U.S. dollars and Thai baht, with virtually no reliance on the Cambodian riel. In the first quarter of 2025, 68.6 percent of Thai exports to Cambodia were paid in U.S. dollars, and 31.3 percent in baht. Imports were similarly split, enabling firms to hedge foreign exchange risks effectively. Nonetheless, the report notes that issues such as liquidity constraints, border disruptions, and counterparty risks warrant continued monitoring.

On the investment front, Thai retail and mutual fund exposure to Cambodian financial assets is negligible. As of April 2025, retail holdings stood at only USD 0.42 million, or 0.003 percent of all Thai foreign retail investments. No Thai mutual funds currently hold Cambodian securities.

With regard to commercial banking, Thai banks operate in Cambodia through local affiliates and branches, providing digital payments, QR services, deposits, and loans. However, these operations account for just 0.41 percent of total Thai bank assets, 0.42 percent of loans, and 0.26 percent of deposits, indicating limited systemic exposure.

The report concludes that Thai banks remain well-positioned to manage any fallout from bilateral tensions, due to their conservative overseas strategies, focus on trade-related financial services, and active risk monitoring in regional markets. While border-area disruptions could affect local commerce, the overall risk to Thailand’s banking system is expected to be contained. [The Nation]

Zhejiang Hozon New Energy Automobile, the Chinese parent company of electric vehicle (EV) brand Neta, has entered bankruptcy proceedings as of June 19, 2025, facing debts of nearly CNY 10 billion (USD 1.39 billion) and severe operational disruptions.

While Neta Thailand publicly framed the restructuring as a court-supervised, government-led recovery plan, local developments tell a different story. According to a Thai supplier, Neta’s local team was laid off by the end of May, and both dealers and suppliers in Thailand have incurred significant financial losses. These revelations follow earlier complaints filed by EV users in Thailand with the consumer council, raising concerns over service continuity and warranty obligations.

The parent company’s bankruptcy and failure to pay employee wages since late 2024 have already led to production stoppages and showroom closures in China. Despite leadership changes and promises of revitalization, including the attraction of strategic investors and renewed international expansion, the situation remains volatile. In Thailand, the Ministry of Finance is reportedly discussing whether to extend Neta’s EV production deadline, underscoring the broader implications of Hozon’s collapse for the country’s EV industry.

Thailand’s Finance Ministry has proposed a new trade-in scheme to support the struggling domestic pickup truck market, which saw a 17 percent year-on-year decline in pure pickup sales from January to May 2025, totaling 62,467 vehicles. The decline is largely attributed to stricter lending criteria by banks and auto finance companies in response to high household debt levels.

Under the scheme, owners of 20–25-year-old pickups will be eligible for excise tax reductions when purchasing new vehicles. The initiative, backed by the Federation of Thai Industries (FTI), is expected to boost sales by 50,000 to 100,000 units. The FTI also suggests expanding the program to include passenger cars and pickups aged 5–8 years to further stimulate market recovery.

To facilitate auto financing, the government also plans to involve the Thai Credit Guarantee Corporation in providing credit guarantees. The FTI has called for a THB 5 billion (USD 145 million) fund to support this mechanism.

While domestic car sales declined by nearly 3 percent in the first five months of 2025, exports rose in May by 23 percent, driven by demand from Australia and the Middle East, especially for pickups and hybrid EVs. [Bangkok Post]

Thailand’s tourism sector faces mounting pressure as foreign arrivals declined by 4.24 percent year-on-year from January 1 to June 22, 2025, totaling 16.04 million visitors, according to the Tourism and Sports Ministry. The top source markets were Malaysia (2.19 million) and China (2.17 million). The government’s revised forecast now expects 37 million arrivals in 2025, down from the earlier 38 million, and still below the pre-pandemic peak of nearly 40 million in 2019. [Bangkok Post 1]

The downturn is compounded by multiple destabilizing factors, notably the escalating Iran–Israel conflict, which threatens long-haul travel from the Middle East, the United States, and Europe—key “hope markets” for Thailand. The Thai Hotels Association (THA) estimates a potential 10 to 20 percent drop in arrivals from these regions, especially if the conflict intensifies over the summer. The June–August period is typically high season for Middle Eastern tourists seeking refuge from extreme heat in their home countries.

Despite current headwinds, Thailand has set a target of 1.06 million Middle Eastern visitors in 2025, up 11 percent from 956,000 in 2024. This group remains a high-value segment, contributing approximately THB 86 billion (USD 2.5 billion) annually, with an average spend of THB 104,138 per trip and stays ranging from 10 to 14 days. [The Nation]

In parallel, the government has launched a domestic stimulus initiative, approving THB 1.75 billion (USD 50.75 million) for the "Half-Half Thailand Travel" campaign to boost local tourism during the low season (July–October). The program subsidizes accommodation and related expenses to encourage travel to secondary cities, with the aim of generating THB 35 billion (USD 1.02 billion) in domestic spending and creating at least 40,000 jobs. [Bangkok Post 2]

Thailand’s durian exports to China have increased significantly following enhanced customs efficiency at the Youyiguan border crossing, according to the Department of International Trade Promotion (DITP). The border, China’s largest land entry point for fruit, has implemented advanced logistics and inspection technologies that have accelerated the passage of Thai fruit shipments, especially during high-traffic periods such as the Dragon Boat Festival from May 31 to June 2, during which over 8,800 trucks crossed, up 89 percent from earlier averages.

In May 2025, over 4,500 containers of Thai durians passed through Youyiguan, with the daily average rising from 150 to 170 containers due to improved randomized inspection and clearance procedures. These upgrades have helped maintain product quality and reduce delays despite increasing traffic volumes. [The Nation]

Thailand’s Finance Ministry has instructed a major state-owned housing lender to inject THB 150 billion (USD 4.35 billion) in new loans into the property market during the second half of 2025, as part of efforts to stimulate growth and create jobs. The directive, issued by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, is aimed at revitalizing the sluggish real estate sector and boosting related industries.

The institution tasked with this expansion is the Government Housing Bank (GH Bank)—a state-owned bank that specializes in home financing for Thai citizens. According to GH Bank President Kamonpop Veerapala, the bank had already disbursed THB 100 billion in the first half of the year and is on track to meet its full-year lending target of THB 241.78 billion (USD 7 billion).

To implement the mandate, GH Bank has launched four targeted loan programs:

· A Premier Home Loan for high-income borrowers, offering loans starting at THB 7 million with an initial interest rate of 1.79 percent.

· Repair & Decorate loans of up to THB 300,000, with preferential rates of 1.00 percent on the first THB 100,000.

· A Pre-Finance Premium Loan for property developers in 27 high-potential provinces, with a first-year rate of 3.90 percent.

· A THB 30 billion (USD 870 million) Debtor Assistance Program for financially vulnerable borrowers, offering 0 percent interest for six months and temporary monthly payments as low as THB 1,000.

The ministry has instructed all state financial institutions to shift from profit maximization toward economic stimulus, aiming to trigger broader recovery across construction, housing, and employment-related sectors. [The Nation]