Thailand 20250228
Mekong Memo Thailand Weekly: Business, politics, finance, trade & legal news.
Business stories from Southeast Asia directly to your inbox every week.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
Here is your Mekong Memo Thailand for this week.
As a reminder, you can adjust which country versions of The Memo you would like to receive by adjusting your settings here.
Headlines:
Backlash Over Uyghur Deportation
Security and Policy Challenges Dominate
Border Scrutiny as Scam Operations Shut Down
Rice Exports and Fisheries Policy Under Pressure
Multi-Sector Push Draws Japan Interest
Central Bank Cuts Rate Over Fears
Political Purge Tests Democratic Commitment
Eastern Corridor Faces Infrastructure Delays
Environmental Challenges Force Cooperation
Bangkok City Courts Chinese Expertise
Car Scrapping Considered as Auto Crisis Deepens
Sugar Industry Faces Crisis on China Ban
Long-Term Visa Rules Eased For Foreign Talent
Refer three friends and receive a full paid subscription to The Memo for one month absolutely FREE:
Backlash Over Uyghur Deportation
Thailand is drawing international criticism after deporting 40 Uyghur men to China, where rights groups warn they could face persecution, torture, or indefinite detention. The deportation, carried out in secrecy, involved detainees who had been held in Thai immigration facilities for more than a decade. The U.S., UN, and human rights organizations have vocally condemned the move, with the UN calling it a “clear violation of international law.” Thai officials are claiming that the repatriation followed legal processes, but critics argue it contradicts Thailand’s own laws, never mind international ones. The deportation comes as Thailand appears to be cozying up to China relations, raising concerns about future human rights policies.
Read more: HRW (Legal concerns), NBC News (U.S. response), VOA (UN condemnation), Khaosod English (Secrecy concerns), SCMP (China's response), Thai Political Prisoners (Government inconsistencies)
Security and Policy Challenges Dominate
The country’s immigration biometric system has stopped functioning, leaving 17 million travelers unrecorded and raising concerns over border security. In a separate development, former Prime Minister Thaksin Shinawatra is backing a regional peace strategy for Thailand’s deep South, emphasizing cooperation with Malaysia, Brunei, and Indonesia. His visit sparked political debate, particularly regarding his past role in the region’s conflicts.
Read more: Bangkok Post (Biometric System), Bangkok Post (Southern Peace)
Border Scrutiny as Scam Operations Shut Down
The government is trying to figure out how to keep an influx of foreigners linked to dismantled scam operations along the Myanmar border at bay. With more than 7,000 people awaiting repatriation, concerns are growing over illegal crossings and overcrowded facilities. Thailand has cut power, internet, and fuel supplies to suspected scam centers, leading to a 40% drop in electricity use in targeted areas. Authorities are working with home countries for quick repatriation, though challenges remain with nations lacking diplomatic presence in Thailand. Long fuel lineups have formed at border crossings as Myanmar motorists struggle with supply shortages caused by Thai restrictions.
Read more: Nation Thailand (Border Crackdown), Bangkok Post (Government Worry), Bangkok Post (Repatriation)
Rice Exports and Fisheries Policy Under Pressure
Rice exports are expected to drop 33% in the first quarter due to India’s return to global rice markets and a stronger baht affecting competitiveness. At the same time, domestic rice prices have fallen sharply, triggering farmer protests demanding price guarantees and income support. The government has introduced relief measures, but concerns remain about how effective they will be. Meanwhile, proposed amendments to the Fisheries Act have sparked pushback from small-scale fishers and activists, who fear a return to unregulated practices that previously led to overfishing and labor exploitation. Industry supporters argue the changes will boost production and support economic growth.
Read more: Bangkok Post (Rice export decline), Asia News Network (Farmer protests), Dialogue Earth (Fisheries law debate)
Multi-Sector Push Draws Japan Interest
Japanese companies are increasing investment in Thailand as they look for alternatives to China due to trade tensions and supply chain risks. Following a Board of Investment (BOI) roadshow in Tokyo, firms from the automotive, semiconductor, and food sectors have shown interest in expanding operations. Isuzu and Mitsubishi say they plan to produce electric and hybrid vehicles in Thailand, while Toshiba and MinebeaMitsumi are looking into semiconductor investments. Beverage giant Suntory is also looking to scale up production.
Read more: Nation Thailand (Investment forum), Bangkok Post (Trade war concerns)
Central Bank Cuts Rate Over Fears
The central bank delivered a surprise 25-basis-point rate cut to 2.00%, trying to maintain balance between growth concerns and limited policy space with US trade tensions. While the move is in line with government pressure for monetary easing, BOT officials say that this isn't the start of an easing cycle, with Assistant Governor Sakkapop Panyanukul setting "a high bar" for future cuts as policy space narrows. The decision comes with manufacturing sector challenges and stiff competition from imports, contributing to an anemic 2.5% GDP growth in 2024 that fell short of official targets.
Read More: NHK World-Japan (rate cut), Bangkok Post (cabinet pressure), Reuters (policy adjustment)
Political Purge Tests Democratic Commitment
The never-ending political shifts continue as 44 former Move Forward Party politicians are faced with potential lifetime bans from politics, an escalation in the use of legal mechanisms to restrict attempt at reform. The National Anti-Corruption Commission's actions, coupled with the Constitutional Court's earlier dissolution of the Move Forward Party, show institutional resistance to change in governance structures, particularly regarding the monarchy. Opposition forces are challenging anti-corruption bodies' conduct, including investigations into high-profile malfeasance cases, as the regional context shows increasing pressure on democratic institutions across Southeast Asia.
Read More: Human Rights Watch (Political Suppression), Bangkok Post (Corruption Investigation), The Nation (Protest Rights)
Eastern Corridor Faces Infrastructure Delays
The Eastern Economic Corridor is seeing infrastructure projects encounter delays and legal disputes, with the $290-billion U-tapao airport development finally set to move ahead after a three-year delay and a contentious 3.7-billion-baht solar farm lawsuit threatening clean energy plans.
Read More: Bangkok Post (Solar Dispute), Bangkok Post (Infrastructure)
Environmental Challenges Force Cooperation
PM2.5 pollution levels have risen across Thailand, causing health warnings in seven provinces to be issued and forcing unprecedented cooperation among Southeast Asian nations. Thailand has set up a three-nation hotline with Myanmar and Laos for haze management. Bangkok's livability initiatives and collaboration between three major universities on sustainable development metrics is making some hopeful that there is a turn toward more comprehensive environmental governance. Responses include the establishment of 16,246 "clean air" rooms across 70 provinces and improved regional cooperation frameworks.
Read More: Bangkok Post (Haze Coordination), Bangkok Post (Forest Encroachment), The Nation (PM2.5 Health Warning)
Bangkok City Courts Chinese Expertise
Bangkok's recent outreach to Shantou comes as China pushes past the UK to claim second place in global soft power rankings while Thailand holds steady at 39th position. Governor Chadchart's mission to Shantou resulted in four cooperation agreements in special economic zones, wind power technology, traditional medicine, and industrial development - with the 2,000-million-kilowatt-hour Huaneng wind project emerging as a key knowledge transfer opportunity (Thai media often reports “billion” as “thousand million” as that’s how it is written in the Thai language). The timing comes with celebrations of 25 years of Bangkok-Shantou ties and 50 years of Thai-Chinese relations, providing cover for renewed positioning as Southeast Asian nations jockey for influence in China's expanding regional presence.
Read More: The Nation (Collaboration), Khaosod English (Power Shift), Bangkok Post (Urban Cooperation)
Car Scrapping Considered as Auto Crisis Deepens
The automotive sector is in crisis mode as production fell by nearly a quarter in January, an 18th consecutive monthly decline that has dropped Southeast Asia's former automotive powerhouse to third place in regional sales rankings. The government is looking into setting up a car trade-in and scrapping program - backed by Toyota - targeting older, high-emission vehicles to stimulate the market while also getting environmentally unfriendly rides off the road. The decline is being pinned on tightening auto loan standards and soaring household debt, with rejection rates hitting 70%. While Chinese EV makers are dropping billions in Thai facilities and slashing prices, traditional automakers have to deal with declining exports, the domestic sales slump, and workforce reductions - threatening Thailand's position as the region's primary automotive hub.
Read More: IndexBox (Production Decline), Bangkok Post (Industry Support), Bangkok Post (Car Trade-In)
Sugar Industry Faces Crisis on China Ban
China’s suspension of Thai sugar syrup imports has cost Thai firms more than 2 billion baht, doubling previous loss estimates. The ban, linked to concerns over factory hygiene, has brought operations to a stop for two months, with some companies facing imminent shutdowns. Efforts by Thai officials to negotiate a resolution have so far gone unanswered by Beijing. With 40,000 tonnes of syrup shipments having been returned and factories unable to sell their stock, the industry is bracing for further disruption.
Read more: Bangkok Post
Long-Term Visa Rules Eased For Foreign Talent
Thailand has eased requirements for its long-term resident (LTR) visa program, reducing financial thresholds and expanding eligibility. The minimum revenue requirement for foreign employers of "work-from-Thailand professionals" has dropped from $150 million to $50 million over three years. Wealthy global citizens no longer need to meet an $80,000 annual income threshold, and the list of “high-skilled professionals” now includes vocational lecturers. The changes are intended to attract more foreign experts, investors, and executives.
Read more: Tilleke & Gibbins
That’s it for this week, thanks for reading!
How are we doing?
We love hearing from readers, and we are always looking for feedback. How are we doing with the Mekong Memo? Is there anything you'd like to see more of or less of? Which aspects of the newsletter do you enjoy the most?
Your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and help us get better. We'd love to hear from you!
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. Please also “like” this newsletter by clicking the ❤️ below, which helps us get visibility on the Substack network.
Thank you!