Thailand 20241115: Taciturn, Irascible, Invincible
Mekong Memo Thailand Weekly: Business, politics, finance, trade & legal news.
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Here is your Mekong Memo Thailand for this week.
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Headlines:
BOT Leadership Change Sends Markets Reeling
AI Plan to Jockey For Innovation Leader Position
BYD Hits EV Production Milestone
Government Says New Holidays to Boost Tourism
Economic Indicators Mixed
Nuclear Power Study Marks Energy Sector Shift
Infrastructure News Signals Change for BKK
PM Advances Agenda at APEC Forum
Film Industry Gets Lift with Higher Rebates
Digital Hub Policies Showing Success
Zero Dropout Program to Reintegrate 1M Students
Commerce Ministry to Crackdown on Nominees
Phuket a Premier Luxury Investment Destination
SLAPP Laws Silence Activists and Journalists
The ‘Indo-Pacific’ a Misleading Label
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BOT Leadership Change Sends Markets Reeling
The appointment of former finance minister Kittiratt Na-Ranong as Bank of Thailand board chairman has sent shockwaves through financial markets, resulting in the sharpest baht depreciation in months and raising concerns about central bank independence. The baht plunged from 34.02 to a three-month low of 34.9 against the dollar before showing a slight recovery. Financial experts and economists have issued warnings about maintaining the central bank's autonomy, with particular concern about Kittiratt's previous criticism of BOT policies. While the new chairman took to social media to thank both supporters and critics, the BOT has attempted to calm market jitters by emphasizing continuity in monetary policy. The appointment comes at a sensitive time as Thailand's currency performance is already lagging regional peers.
Read more: Bangkok Post (Market Impact), Thai Examiner (Expert Warnings), Nation Thailand (Chairman's Response), Bangkok Post (Central Bank Response), Bangkok Post (Currency Analysis)
AI Plan to Jockey For Innovation Leader Position
Khon Kaen University and the National AI Development Plan Committee have launched the 'Thailand Artificial Intelligence Development Plan 2025-2030.' The initiative is hoped to establish Thailand as a regional AI hub. The plan’s boosters hope to to grow GDP by 6% through AI applications in trade and industry sectors by 2030.
Read more: KKU (Details), Bangkok Post (Economic Impact)
BYD Hits EV Production Milestone
Chinese automaker BYD has produced its 10,000th electric vehicle in Thailand just four months after opening its factory. The Rayong facility, with an annual production capacity of 150,000 units, is set to become a major center for ASEAN markets, producing three models – Dolphin, Atto 3, and Sealion 6. The result is noteworthy because it indicates that Thailand may be able to maintain is position as “Detroit of the East” in the new era of electric vehicle production.
Read more: Asian News Network, Bangkok Post (Market Outlook)
Government Says New Holidays to Boost Tourism
The Cabinet has approved additional holidays for 2025, reportedly to stimulate domestic tourism and “economic recovery.” New holidays include June 2 and August 11, creating extended weekends around the Queen's Birthday holiday and Mother's Day. An additional holiday on January 2, 2026, will extend the New Year break to five days. The strategy is said to encourage longer domestic trips and boost local tourism spending during traditionally slower periods, but there is no word on what all of these holidays will do for productivity in the non-tourism sector.
Read more: The Diplomat (Policy Analysis), Bangkok Post (Implementation Details)
Economic Indicators Mixed
Consumer confidence rose in October for the first time in eight months, driven by government economic measures and improved overall market conditions. The Thai Industries Sentiment Index also showed a bit of a lift, driven by year-end festivities and rising orders. Market observers note persistent challenges, however, including logistics costs and ongoing concerns about long-term economic stability.
Read more: Bangkok Post (Consumer Sentiment), Bangkok Post (Industrial Outlook)
Nuclear Power Study Marks Energy Sector Shift
Thailand's nuclear power plant project is moving forward as the Energy Regulatory Commission prepares to sign an MOU with the Office of Atoms for Peace. The latest developments focus on small modular reactor technology with capacities under 300 MW, a size that is considered safe and has limited environmental impact. The study will include public hearings and educational outreach to address community concerns.
Read more: Khao Sod English, Bangkok Post (Regulatory Framework)
Infrastructure News Signals Change for BKK
Bangkok is implementing significant infrastructure changes, including new construction projects and potential congestion charges to ease traffic. The city is considering implementing fees for entering congested areas, following models from other major cities. Meanwhile, construction alerts have been issued for several major arteries, signaling the start of long-term development projects.
Read more: Bangkok Post (Construction Updates), Vietnam News (Congestion Pricing)
PM Advances Agenda at APEC Forum
Prime Minister Paetongtarn Shinawatra is meeting Chinese President Xi Jinping and other world leaders at the APEC Economic Leaders' Meeting in Lima, Peru. Thailand's delegation is focused on three agendas: expanding the Asia-Pacific Free Trade Area, promoting social equality, and supporting the digital economy. The PM has been keen to share Thailand's readiness for trade and investment, highlighting the country's “stability.”
Read more: Bangkok Post, Nation Thailand (Bilateral Relations)
Film Industry Gets Lift with Higher Rebates
The government will increase the cash rebate for foreign film productions from 20% to 30% following recent meetings with senior Hollywood executives in Los Angeles. The move will attract more international productions and strengthen Thailand's position in the global film industry, a bright spot in the economy over the past few years.
Read more: Deadline, Nation Thailand (Industry Impact)
Digital Hub Policies Showing Success
Digital infrastructure initiatives are bearing fruit, with growing investments in data centers and digital services. The country is emerging as a regional tech hub, attracting interest from major technology companies. NVIDIA is reportedly planning investments, with CEO Jensen Huang expected to make announcements during his December visit to Bangkok.
Read more: Bangkok Post (Policy Success), Bangkok Post (Outlook)
Zero Dropout Program to Reintegrate 1M Students
Thailand’s new Zero Dropout policy, backed by the Equitable Education Fund and UNESCO, is aiming to reintegrate one million students by 2027. Addressing dropout rates, particularly among marginalized groups, the policy combines data sharing across ministries, targeted funding, and private-sector partnerships. Incentives include providing financial support to encourage education re-entry, while local and international cooperation is planned to ensure sustainable, inclusive educational access nationwide.
Read more: Bangkok Post
Commerce Ministry to Crackdown on Nominees
The Commerce Ministry announced a multi-phase plan to combat foreign businesses illegally operating in Thailand using Thai “nominees.” Immediate measures include improved monitoring and legal action under existing laws. A medium-term plan aims to introduce an analytical system to detect nominee usage patterns. For long-term sustainability, the ministry is considering legal amendments to improve enforcement capabilities, potentially blocking high-risk registrations tied to money laundering concerns.
Read more: Nation Thailand
Phuket a Premier Luxury Investment Destination
Phuket is becoming a major luxury investment hub, drawing high-net-worth individuals with competitive real estate prices, luxury resorts, and growing infrastructure. The new “Phuket Luxury Report” by C9 Hotelworks and Property Guru identifies main drivers, including exclusive beach resorts, wellness programs, and luxury retail, all supported by infrastructure expansions like airport upgrades and a light rail system. The island’s appeal as a global lifestyle destination is apparently beginning to rival locations like Miami and Dubai, with a separate report saying that Phuket airport is now seeing 300 flights a day.
Read more: Khaosod English, Bangkok Post (Flights)
SLAPP Laws Silence Activists and Journalists
Chutima Sidasathian, a Thai journalist and advocate, details her battles against Strategic Lawsuits Against Public Participation (SLAPP), showing how Thailand’s criminal defamation laws are used to target journalists and activists who expose corruption. These laws enable powerful entities to stifle dissent by prosecuting individuals without substantial evidence, creating a need to repeal criminal defamation laws. A global campaign is underway to protect freedom of speech, intended to curb the misuse of SLAPP suits in Thailand and beyond.
Read more: Asia Times
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap up with a less business-focused article. Hot topics this week are Suvarnabhumi’s new SAT-1 terminal’s accolades, success battling monkeys in Lopburi, an Autonomous Air Taxi drone’s first Thailand flight, and a Thai artist’s exhibition that examines what the world would look like if the Buddha had gone west. We close with this thought provoking article about how labels are influencing an important geopolitical topic:
The ‘Indo-Pacific’ a Misleading Label
The Indo-Pacific, an area spanning half the Earth’s surface, is too vast to be effectively termed a single region despite recent attempts to shoehorn the entire space into the name. While many countries, especially the U.S. and its allies, are using the label as a strategic concept, it oversimplifies complex local dynamics and risks fueling a “New Cold War” narrative against China. A better approach would be to view it as a constructed “macrosecuritized” space.
Read more: Asia Times
That’s it for this week, thanks for reading!
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