On June 24, 2025, Thailand’s Cabinet approved a draft ministerial regulation aimed at overhauling the country’s share repurchase rules for public companies. The reform, proposed by the Ministry of Commerce, seeks to enhance corporate flexibility in managing capital by eliminating the six-month waiting period between buyback programs and extending the timeframe for disposing of repurchased shares. The draft is now under legal review by the Council of State, with input from the National Economic and Social Development Council (NESDC) to follow.

Key changes include removing the mandatory six-month gap between repurchase programs and allowing companies to extend the share disposal period from the current three-year limit to a maximum of six years, subject to shareholder approval. These amendments bring Thailand's corporate governance framework more in line with international norms and are expected to improve financial planning capacity and investor confidence, particularly among Stock Exchange of Thailand (SET)-listed firms. [Mahankorn Partners Group]

hailand’s Monetary Policy Committee (MPC)—the central bank body responsible for setting the country’s key interest rate—is expected to keep the policy rate at 1.75 percent during its upcoming meeting, with economists predicting one or two cuts in the second half of 2025 in response to weakening economic indicators. Analysts cite softening exports, subdued tourism, high household debt, and inflation below target as factors tightening financial conditions. 

Research units from major financial institutions forecast the policy rate could be cut to 1.25 percent by year-end. Further cuts in 2026, possibly down to 0.75 percent, are projected in response to persistent economic softness. Analysts also point to the risk of delayed budget disbursement due to political instability and highlight that the Bank of Thailand’s real policy rate remains above historical norms. [Bangkok Post 1] 

The decision-making landscape is also shaped by the upcoming transition at the helm of the central bank. Current BoT Governor Sethaput Suthiwartnarueput will conclude his five-year term on September 30, 2025, and is ineligible for reappointment. The Finance Ministry is expected to nominate Vitai Ratanakorn, president of the state-owned Government Savings Bank, as his successor. Vitai has emerged as the preferred choice of Finance Minister Pichai Chunhavajira and is favored by political leaders seeking a more pro-growth and pragmatic policy orientation. He is known for advocating sustained low interest rates and for criticizing the ineffective transmission of past rate cuts to commercial bank lending. His expected nomination signals a desire to pivot away from the BoT’s traditionally conservative monetary stance in favor of real-sector stimulus. [Bangkok Post 2] 

The central bank selection process originally featured a shortlist of six candidates, later narrowed to Vitai and Roong Mallikamas, BoT deputy governor for financial stability. Vitai’s likely nomination reflects a clear policy shift sought by the ruling Pheu Thai Party, which views the BoT’s current stance as overly theoretical and misaligned with economic realities. 

Concurrently, market observers had previously viewed other finalists such as Sutapa Amornvivat, a former IMF economist with family ties to the ruling party, and Somprawin Manprasert, a vocal advocate for aggressive rate cuts, as potential stewards of the pro-growth agenda. [Bangkok Post 3] [Bangkok Post 4] 

Thailand is intensifying its efforts to become a regional center for artificial intelligence (AI), combining significant public investment with regulatory and institutional reforms. The government has pledged over USD 5.4 billion in AI infrastructure spending by 2027 and launched multiple initiatives aimed at strengthening digital capabilities, fostering ethical innovation, and building an inclusive ecosystem. These efforts were showcased during the UNESCO Global Forum on the Ethics of AI 2025, held in Bangkok from June 25 to 27.

A centerpiece of Thailand’s AI strategy is the planned establishment of the region’s first AI Governance Practice Centre in Bangkok, in partnership with UNESCO. Scheduled to open in January 2026 under the supervision of the Digital Economy and Society Ministry, the center will serve as a hub for governance training, information exchange, and international collaboration on AI ethics. UNESCO has pledged staffing support and views Thailand’s strong connectivity and cultural heritage as well-positioned to lead in ethical AI development.

Prime Minister Paetongtarn Shinawatra emphasized that AI should serve human-centered goals—improving healthcare, education, and agricultural outcomes—while avoiding harms such as misinformation and job displacement. As part of this human-centric approach, Thailand aims to train 90,000 AI professionals, develop 50,000 programmers, and reach 10 million users through its national AI agenda. Additional projects include a USD 61 million national data center and open-source AI infrastructure, with targeted economic impacts valued at USD 50 million.

Thailand’s regulatory push is guided by the UNESCO Readiness Assessment Methodology (RAM), which has highlighted both strengths and areas for improvement. While Thailand scores well in digital infrastructure and government platforms, weaknesses remain in AI-specific legislation, ethical oversight, and inclusivity. Policymakers are urged to create legal safeguards for transparency, fairness, and accountability in AI systems, while bridging access gaps for vulnerable populations.

To address these gaps, Thailand is developing a dedicated AI software testing center, enhancing AI literacy and ethics in education, and planning a regulatory sandbox for AI applications. The National Electronics and Computer Technology Center (Nectec) and the Electronic Transactions Development Agency (ETDA) are key implementing agencies. Nectec will oversee software testing, while ETDA will manage certification.

Other recommended reforms include: developing frameworks for risk assessment of high-impact AI systems, ethical procurement in government AI use, copyright exceptions for AI-driven research, and stronger public-private collaboration on AI innovation. Thailand also seeks to promote green energy for data centers and improve intellectual property systems to support AI commercialization. [Bangkok Post 1] [Bangkok Post 2]

Thai economic crime investigators have raided a Chinese-owned heavy machinery leasing company operating under a nominee structure, arresting three individuals and uncovering over THB 500 million (USD 14 million) in revenue generated through operations involving more than 250 machines. The raids targeted the firm’s headquarters in Bangkok and branches in Ayutthaya and Rayong.

The arrested suspects include one Chinese national and two Thai women whose names were registered as company shareholders. Authorities allege that the Thai individuals were merely nominal stakeholders with no financial investment or managerial involvement. Instead, the company was reportedly controlled by Chinese investors, with payments exceeding THB 50 million (USD 1.4 million) initially injected by foreign principals.

Officials have accused the company of violating Thailand’s Foreign Business Act by using Thai nationals to circumvent ownership restrictions. Leasing contracts for heavy equipment, such as cranes and forklifts, were found during the operation, with business conducted both domestically and internationally.

The case underscores increased enforcement efforts by Thai authorities to crack down on foreign nominee arrangements—structures often used to evade legal limits on foreign investment and control. The investigation remains ongoing, with additional suspects and documents under review. [Bangkok Post]

Thailand’s proposed legislation to establish integrated entertainment complexes with casinos has been pushed to the bottom of the legislative agenda following mounting public backlash and warnings from the Senate that the bill may violate the 2017 Constitution.

A Senate review panel concluded that the government’s framing of the proposal as a generic “entertainment complex” bill—without explicitly disclosing the casino component—may breach multiple constitutional provisions. These include Section 3, which mandates that state power must be exercised in accordance with democratic principles and the rule of law; Section 58, which guarantees the public’s right to be informed and to participate in decisions affecting the environment and public interest; Section 63, which protects traditional and community values from harmful state policies; and Section 65, which requires that government policies align with the national strategy. 

The committee also questioned the bill’s economic rationale, citing global declines in casino revenues and the likelihood that most profits would benefit private investors rather than the state. Critics expressed concern that legal casinos could intensify social problems such as crime and family breakdown, while the government’s argument that regulated casinos would reduce illegal gambling was deemed unconvincing. Under the current proposal, only wealthy Thais with at least THB 50 million (USD 1.4 million) in assets would be eligible to gamble legally, making it unlikely that underground bettors would shift to legal venues. 

Senator Veerapun Suvannamai, who chaired the review, urged the government to withdraw the bill entirely, warning that it could otherwise be challenged in the Constitutional Court. Deputy Prime Minister Anutin Charnvirakul, leader of the Bhumjaithai Party, cited the casino policy as one of the key reasons for his party’s recent withdrawal from the governing coalition. He argued that the policy concentrated wealth among a few and raised doubts about its claimed benefits for the general population. 

In response to the controversy, the ruling Pheu Thai Party has decided to demote the bill to the bottom of the legislative agenda when parliament reconvenes in early July. Although removing the bill entirely would require a formal parliamentary resolution, government figures have said the legislation may still be revisited depending on the political climate. [Bangkok Post 1] [Bangkok Post 2] 

Thailand’s economic outlook for 2025 has deteriorated sharply, with the University of the Thai Chamber of Commerce (UTCC)—a leading private-sector economic research institute affiliated with the Thai Chamber of Commerce—cutting its GDP growth forecast from 3 percent to just 1.7 percent. The revised estimate reflects a combination of mounting risks, including uncertainty over U.S. tariffs, rising trade tensions with Cambodia, weakening investor confidence, and fragile domestic political stability. 

Central to the outlook is Thailand’s unresolved trade dispute with the United States. Despite reports suggesting a deal to lower U.S. tariffs from 36 percent to 18 percent on Thai exports, Finance Minister Pichai Chunhavajira clarified that no agreement has been finalized. He emphasized that figures circulating publicly are merely economic projections used for modeling and do not reflect official terms. Talks that began on June 18 remain ongoing, covering issues such as tariff reductions, quotas, digital trade, non-tariff barriers, and strategic economic security. Thailand’s counterproposal reportedly includes tariff concessions, expanded purchases of U.S. aircraft and military equipment, and regulatory reforms. The next negotiation round is scheduled to take place in the U.S. next week. [Bangkok Post 1] [Bangkok Post 2] 

The Thai Chamber of Commerce has warned that delays in reaching a deal could severely affect export orders during the crucial year-end peak. Signs of slowing demand have already emerged since late May. The chamber has urged government agencies to provide clear guidance so that exporters can plan accordingly.

Simultaneously, trade tensions with Cambodia have added pressure. Following Phnom Penh’s ban on several Thai products, Bangkok has rerouted affected goods to alternate markets and launched campaigns to boost domestic consumption of Thai agricultural products. These developments come as bilateral relations remain strained over border management issues and recent trade restrictions. 

The UTCC report also highlights broader structural concerns. Industrial recovery remains sluggish, with capacity utilization stuck at 65.1 percent, while private investment has declined for four consecutive quarters. Household debt is expected to rise to 87.4 percent of GDP. Exports and tourism are projected to underperform in the second half of 2025. 

The UTCC laid out three scenarios. In the most favorable case—where U.S. tariffs are capped at 10 percent, border and geopolitical tensions are resolved quickly, and political continuity is maintained—growth could reach 2.3 percent. A moderate scenario, on which the 1.7 percent projection is based, assumes mid-level tariffs and partial budget disbursement. In a worst-case scenario involving higher tariffs, full border closures with Cambodia, and a possible parliamentary dissolution, GDP could fall as low as 0.9 percent. 

To buffer these risks, UTCC President Thanavath Phonvichai urged the government to expedite trade negotiations, accelerate public budget disbursement, and ease bank lending restrictions—particularly for housing and auto loans. Without urgent and coordinated action, he warned, Thailand’s recovery will remain fragile and exposed to both domestic instability and external headwinds. [Bangkok Post 3] [Bangkok Post 4] 

Thailand’s Cabinet has approved a THB 15 billion (USD 412 million) soft loan scheme to support small and medium-sized enterprises (SMEs) in the country’s southernmost provinces, where ongoing unrest has dampened investor confidence and disrupted local business operations.

Under the scheme, participating commercial and state-owned banks will receive low-interest loans from the Government Savings Bank to on-lend to SMEs in Yala, Pattani, Narathiwat, and four districts of Songkhla (Thepha, Chana, Na Thawi, and Saba Yoi). Each borrower may receive up to THB 20 million (USD 550,000) at a fixed annual interest rate of 1.99 percent. The program will run through the end of 2027.

The government aims to improve access to affordable capital for local entrepreneurs, reduce debt burdens, and stimulate long-term private investment and economic recovery in Thailand’s conflict-affected deep South. [The Nation]

Thailand’s Trade Representative held high-level talks with Russian officials at the St. Petersburg International Economic Forum to reinvigorate stalled negotiations on a free trade agreement (FTA) between Thailand and the Eurasian Economic Union (EAEU). The EAEU is a regional economic bloc led by Russia and including Armenia, Belarus, Kazakhstan, and Kyrgyzstan, designed to promote economic integration and a common market among member states.

The discussions focused on overcoming trade barriers, facilitating financial transactions, and expanding bilateral investment. In 2024, Thai-Russian trade rose by 4.59 percent year-on-year to approximately USD 1.58 billion, with Thailand maintaining a USD 188.67 million trade surplus. Thai exports—mainly rubber products, electronics, seafood, and jewelry—reached USD 885.46 million, while imports—primarily fertilizers, metals, and chemicals—stood at USD 696.79 million.

Key concerns raised included Russia’s suspension of certain Thai food imports and the impact of sanctions on cross-border payment systems. Both sides agreed to pursue follow-up discussions. Russia also expressed willingness to help accelerate broader FTA negotiations within the EAEU framework. [Bangkok Post] 

Thailand’s Government Housing Bank (GH Bank), long focused on providing home loans to low-income earners, is preparing to expand into higher-end real estate lending and new asset classes, according to Finance Minister Pichai Chunhavajira. The move follows proposed amendments to leasehold property laws that would extend lease terms from 30 to 99 years—aimed at unlocking broader financing opportunities.

Currently holding a 42 percent share of Thailand’s mortgage market, GH Bank has begun offering loans starting from THB 7 million (USD 191,000), targeting middle- to high-income borrowers. The bank has also extended maximum loan tenure to 85 years (borrower's age plus term), aiming to reduce monthly payments and ease financial burdens.

In the first half of 2025, GH Bank issued THB 100 billion (USD 2.74 billion) in loans and aims to lend an additional THB 150 billion (USD 4.11 billion) in the second half, slightly surpassing its annual goal of THB 241 billion (USD 6.61 billion). The bank maintains the lowest minimum retail lending rate in Thailand at 6.545 percent.

GH Bank is also participating in the central bank’s debt relief program “You Fight, We Help” and has undertaken large-scale debt restructuring to prevent defaults, covering over 373,000 accounts as of May 2025. The bank’s evolving mandate reflects a broader policy push to increase mortgage accessibility and deepen financial competition across income segments. [Bangkok Post]

Thailand’s cannabis industry, once hailed as a regional pioneer after the country decriminalized the plant in 2022, is now facing regulatory upheaval following the Public Health Ministry’s abrupt rollout of sweeping new restrictions.

The regulations, signed by Public Health Minister Somsak Thepsuthin and now published in the Royal Gazette, limit all cannabis use to medical purposes and impose tight controls on cultivation, retail, and consumption. The government has not confirmed whether cannabis will ultimately be reclassified as an illegal drug, but Minister Somsak has repeatedly stated his intent to do so within 45 days.

Under the new rules, cannabis buds are reclassified as a “controlled herb” under the Protection and Promotion of Thai Traditional Medicine Knowledge Act of 1999. All consumer purchases now require a medical prescription and are limited to a 30-day supply. Retailers must be licensed and source products from certified farms, while the sale of cannabis through vending machines, online platforms, or advertising in any form is banned. Smoking cannabis in shops is prohibited unless conducted under professional medical supervision by certified practitioners. Shops must also employ licensed personnel, such as pharmacists or traditional medicine doctors, to remain operational. [Bangkok Post 1] [Bangkok Post 2]

The sudden restrictions follow the withdrawal of the Bhumjaithai Party—a key proponent of cannabis liberalization—from the ruling coalition, and are widely perceived as a politically motivated reversal by the Pheu Thai-led government. While Prime Minister Paetongtarn Shinawatra's administration insists the changes aim to restore cannabis to a strictly medical-use framework, critics argue the crackdown undermines public health objectives and destabilizes a growing industry.

Thailand’s cannabis sector had been projected to reach THB 43 billion (USD 1.3 billion) in 2025, up from THB 28 billion (USD 865 million) in 2022. An estimated 18,000 cannabis shops had opened nationwide since decriminalization, but many now face closure due to compliance burdens and a shrinking customer base. Entrepreneurs say they were blindsided by the new rules, which took effect without a grace period, prompting shop closures and even considerations of legal action. Industry figures also warn the measures will drive cannabis sales underground, foster corruption, and promote fake medical prescriptions. [Bangkok Post 3] [Bangkok Post 4]

Public frustration has intensified over the government’s failure to pass a long-awaited Cannabis-Hemp Act, which would have established a comprehensive regulatory framework. Activists from a leading pro-cannabis group accuse the government of using the drug policy as political retaliation and weakening public safeguards. They argue that the new prescription model could grant monopolistic control to medical professionals and make cannabis more accessible to minors, since age-based prohibitions were scrapped in the revised regulation.

The group plans a mass protest at the Ministry of Public Health on July 7, demanding that the government abandon plans to re-list cannabis as a narcotic and instead reinstate the original regulatory protections while advancing the stalled Cannabis-Hemp Act. [Bangkok Post 5]

China’s fresh durian imports fell by nearly one-third during the first five months of 2025, driven by a sharp tightening of customs checks targeting pesticide residues and food safety violations. The total import value declined by 32.5 percent year-on-year to USD 1.93 billion, while import volume dropped by 32.9 percent to 390,900 tonnes, according to data from China’s General Administration of Customs.

Vietnam has been the hardest hit. The country’s exports to China plunged by nearly 62 percent in both value and volume, totaling only USD 254 million during the period. The steep decline reflects challenges in meeting China’s increasingly stringent phytosanitary and food safety requirements, which now include tighter limits on pesticide residue and testing for contaminants such as heavy metals and synthetic dyes. Despite being a relatively new supplier in the Chinese market, Vietnam previously relied heavily on China, with over 90 percent of its durian exports going there in early 2024. That share dropped to 57.6 percent in January 2025.

Thailand, although also affected, maintained its position as China’s leading durian supplier. Thai exports fell by 24 percent in value terms, but the country has retained market access through quicker adaptation to China’s testing and certification requirements. According to analysts, Thailand’s early establishment of farm-level testing facilities and better export readiness enabled it to rebuild Chinese confidence more effectively than Vietnamese producers.

Observers note that Vietnam’s fragmented export infrastructure—including a shortage of local testing labs and limited pre-export screening systems—continues to hinder competitiveness. Chinese supermarkets, which cater to middle-class consumers and maintain strict food safety standards, have amplified inspection regimes this year, causing repeated shipment rejections at the border.

Despite the setbacks, Vietnamese officials and industry experts expect that producers will gradually adjust to the new standards. However, the current disruptions highlight the vulnerability of Southeast Asian exporters to shifts in China’s import controls, particularly for high-value commodities like durians, which are widely used in Chinese desserts and gift culture. [Bangkok Post]