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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:
Casino Push Gains Momentum
Transnational Crime Cooperation Intensifies
Investment Applications Hit Record High
Government Debt Concerns Mount
Same-Sex Marriage Law Takes Effect
Long-Term Visa Program Expands
Defense Ministry Chooses Gripen Jets
Cruise Tourism Infrastructure Buildout
Securities Regulator Betters Oversight
Booze Production Liberalization
Carbon Market Revamp
Nuclear Energy Cooperation Advances
Commerce Ministry Supports Rice Exports
Phone ‘Spyware’ Leads to Backlash, Investigations
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Casino Push Gains Momentum
The cabinet has approved the Entertainment Complex Business Act, with heated interest being reported from six major international operators. The complexes will limit casino space to 5% of total area, and are expected to feature hotels, convention centers, and entertainment venues. While the government says that economic benefits will include GDP growth and job creation, the Council of State remains opposed to the bill, arguing it inadequately addresses illegal gambling and deviates from successful models like Singapore's integrated resorts.
Read more: Bangkok Post (Cabinet Approval), Nation Thailand (Investor Interest), iGaming Business (Opposition Concerns)
Transnational Crime Cooperation Intensifies
Following Chinese actor Wang Xing's recent rescue from kidnappers, Thailand and China are making noises about better cooperation against transnational crime. The kidnapping has resulted in a wave of Chinese tourism cancellations, with flight bookings down 155%. Thailand has set up a Tourist Safety Operations Center and plans improved security measures. Thai-Chinese authorities agreed to create a coordination center for tracking victims, and Hong Kong officials have made a visit to Bangkok to address trafficking concerns.
Read more: VnExpress (Tourism Impact), Nation Thailand (Bilateral Cooperation), Taipei Times (Hong Kong Talks)
Investment Applications Hit Record High
The Board of Investment says it received record-breaking investment applications for 2024, reaching 1.14 trillion baht over 3,137 projects. Digital and electronics sectors are growth frontrunners, with Singapore as the top foreign investor. The application wave includes data center investments from global tech companies like Google and Australia's NextDC. Bangkok Bank says that it foresees continued FDI growth in sectors including bio-based industries, EVs, and semiconductors.
Read more: Nation Thailand (BOI Report), Bangkok Post (Banking Perspective)
Government Debt Concerns Mount
The National Economic and Social Development Council is raising the alarm by saying that public debt could reach 69.3% of GDP by 2029, approaching the 70% legal threshold. The medium-term fiscal plan shows steadily increasing debt ratios, while government revenue remains below 15% of GDP. Officials are calling for a strengthened fiscal stability action plan through improved revenue collection and better debt management.
Read more: Nation Thailand
Same-Sex Marriage Law Takes Effect
Thailand will become Southeast Asia's first country to legalize same-sex marriage on January 23. The law grants couples equal rights including those related to tax benefits, inheritance, and adoption. So far, 300 couples plan to participate in a mass registration event in Bangkok, in a celebration of Thailand's position as the region's third country after Taiwan and Nepal to recognize same-sex unions.
Read more: NHK World
Long-Term Visa Program Expands
Cabinet approved big changes to the Long-Term Resident Visa program, removing income requirements for wealthy global citizens and lowering corporate revenue thresholds for overseas employers. The revised scheme extends rights to parents and dependents across all categories, in an attempt to improve Thailand's appeal as a global talent hub.
Read more: Nation Thailand
Defense Ministry Chooses Gripen Jets
Thailand's Defense Ministry supports acquiring Swedish-made Gripen fighter jets over US F-16s in a 19-billion-baht deal for four aircraft. The decision includes technology transfer requirements and shows a preference for direct purchases over financing arrangements. Test flights on highways are planned to evaluate emergency landing capabilities.
Read more: Bangkok Post
Cruise Tourism Infrastructure Buildout
Thailand is working towards making itself a more important regional cruise tourism hub through port upgrades and partnerships. Bangkok's Terminal 22A improvements are intended to support increased passenger services, with three major cruise ships already booked for 2025. The global cruise market is expected to grow from $6.96 billion to $7.62 billion in 2025.
Read more: Nation Thailand
Securities Regulator Betters Oversight
The Securities and Exchange Commission plans new stock pledging regulations and short selling rules to come into force Q1 2025. The revision of regulations is being inked to try to reduce market manipulation while protecting legitimate investors. The SEC reports a 15% improvement in enforcement efficiency, with 10 civil penalties totaling 699 million baht imposed last year.
Read more: Bangkok Post
Booze Production Liberalization
Parliament has passed the Community Liquor Bill with near-unanimous support, allowing small entrepreneurs to produce and trade all types of liquor. The legislation challenges the long-standing duopoly of Thai Beverage and Boon Rawd Brewery, potentially benefiting restaurants and pubs developing craft beverages.
Read more: Bangkok Post
Carbon Market Revamp
A new carbon credits market is being planned to be run through the Stock Exchange of Thailand in order to address weak demand and low prices. Current domestic trading is seeing oversupply challenges, with only three and a half million tonnes of credits purchased compared to more than 20 million generated between 2016 and October 2023.
Read more: Bangkok Post
Nuclear Energy Cooperation Advances
Thailand and the United States have signed an Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy, allowing for the transfer of nuclear materials and technology. The agreement is in support of Thailand’s clean energy goals and comes on the heels of China's recent provision of a miniature neutron source reactor to Suranaree University. Nuclear is clearly a topic to watch in the region as we see an increasing tempo of stories out of Myanmar, Vietnam and Thailand on the topic.
Read more: Yahoo News
Commerce Ministry Supports Rice Exports
Officials are putting the finish touches on measures to support small businesses in rice exports, including reduced stockpile requirements and lower export fees. Thailand exported 9.97 million tonnes of rice in 2024, a 15% value increase. Thailand was once the world’s largest exporter of rice, but these days India and Vietnam are the biggest competitors for the crown.
Read more: Bangkok Post
Phone ‘Spyware’ Leads to Backlash, Investigations
The Digital Economy and Society ministry has opened an investigation into pre-installed smartphone apps in the aftermath of controversy over Chinese brands including unremovable lending apps in their devices. The study is a collaboration between several state agencies in an attempt to protect consumer data and privacy.
Read more: Bangkok Post (Investigation), Bangkok Post (Oppo, Realme), Nation Thailand (Fineasy)
That’s it for this week, thanks for reading!
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