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Here is your Mekong Memo Thailand for this week.
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Headlines:
Economy Eyes 3.5% Growth with New Stimulus
US Trade Negotiations Accelerate on Tariff Fears
Thailand and EU Progress on FTA Talks
Rice Price Stability Under Negotiation
Online Fraud Crackdown Nabs 100
Immigration Gaps Draw Criminal Networks
Illegal Foreign Business Operations Scrutinized
Tourism Vision Outlined at ITB Berlin
Casino Bill Moves Forward with New Entry Requirements
Long-Stay Options For Different Demographics
Environmental Concerns With Biomass Power
Electricity Market Reform to Lower Prices
Ethanol Revolution For Biofuel Sector
First Petroleum Exploration Auction in 17 Years
Thailand Unveils Financial Hub Vision
Tax Incentives Aim to Improve Market Listings
Poverty Risk Affects Millions
Uyghur Deportation Human Rights, Security Concerns
Aviation Technology Investments
Internet Crackdown Sees 80k Sites Blocked
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Economy Eyes 3.5% Growth with New Stimulus
The government wants to see GDP growth of 3-3.5% in 2025 and is working on identifying ways to get there. Prime Minister Paetongtarn Shinawatra's initiative combines immediate actions with structural reforms. Short-term measures include accelerating more than 100 billion baht in pending fund disbursements, streamlining business permits, and fast-tracking infrastructure projects like water systems and railway connections. Long-term reforms focus on implementing industry sandbox approaches, energy sector modernization, and agricultural reforms emphasizing market-led strategies. Final details will be determined through private sector consultations over the next two weeks.
Read more: Nation Thailand (Stimulus), Bangkok Post (Reform)
US Trade Negotiations Accelerate on Tariff Fears
The private sector is pressing the Thai government to expedite trade negotiations with the United States as exports to the US value nearly $55 billion, almost a fifth of total shipments. Thailand had a trade surplus of more than $35 billion with the US as of last year, and the Thai National Shippers' Council is calling for the establishment of a joint government-private sector negotiation committee. The primary concerns include the absence of a clear negotiation strategy, comprehensive trade policy, and risks of export declines for this year.
Read more: Bangkok Post (Trade talks), Bangkok Post (Auto Parts)
Thailand and EU Progress on FTA Talks
Thailand and the European Union have seen some progress in Free Trade Agreement negotiations, with two chapters already in the books. Thai trade representative Nalinee Taveesin and EU delegation's Renita Bhaskar say they expect the agreement to be finalized by year-end. The agreement, the fourth round of talks since 2023, is expected to boost Thailand's GDP by 1.63%, increase annual exports by 3.43%, and raise investment by 2.74%. The negotiations cover workforce development, vocational education, and environmental concerns. The EU, currently Thailand's fourth-largest trading partner, maintained bilateral trade of $43.5 billion last year.
Read more: Nation Thailand
Rice Price Stability Under Negotiation
Commerce minister Pichai Naripthaphan has started talks with India and Vietnam to stabilize global rice prices as Thai farmers protest low market prices. The diplomatic effort is intended to reduce market competition between the major rice-exporting nations and set up a more stable pricing mechanism. Thai rice farmers from 12 provinces are organizing protests at Government House after price support measures weren't addressed in a recent cabinet meeting, demanding government intervention to increase dry season rice prices from 6,000-7,000 baht to 11,000 baht per tonne.
Read more: Investing.com (Prices), Bangkok Post (Protests)
Online Fraud Crackdown Nabs 100
Authorities have charged 100 Thai nationals involved in transnational call center scams operating from Cambodia. The Criminal Court issued has arrest warrants for suspects following a joint Thai-Cambodian police operation that initially netted 119 people. The suspects face charges including criminal organization participation, fraud, and computer crime, which carry potential 15-year prison terms. The scams covered stock trading fraud, romance scams, and the impersonation of government agencies. This crackdown is part of a multinational effort targeting scam operations along Thailand's borders with Myanmar and Cambodia.
Read more: The Diplomat (Fraud Charges), Nation Thailand (BGF Chief Interview)
Immigration Gaps Draw Criminal Networks
The immigration system is under security pressure with 17 million travelers in 2024 lacking complete biometric data collection thanks to “system overload.” The Immigration Bureau says it needs 500 million baht to expand the current system, while a new identity collection system is budgeted at 3 billion baht. These technological shortcomings are said to enable criminal activities, particularly Chinese scam networks and human trafficking operations. Despite repeated warnings, the National Security Committee has not addressed these concerns. Implementation of a new system is expected to take 29 months.
Read more: Bangkok Post
Illegal Foreign Business Operations Scrutinized
Authorities are under increasing pressure to address illegal foreign business operations in the tourism, property, restaurant, and retail sectors. The challenges stem from weak law enforcement and exploitation of legal loopholes, particularly through nominee businesses. The biggest concerns are over unauthorized foreign tour guides, irregular property investments, questionable restaurant ownership compliance, and proliferating foreign retail shops, especially Chinese-owned businesses. Authorities say they need to implement stricter visa regulations, do more business inspections, and improve the enforcement of existing laws to protect local business competitiveness.
Read more: Bangkok Post
Tourism Vision Outlined at ITB Berlin
Prime Minister Paetongtarn Shinawatra presented Thailand's tourism strategy at ITB Berlin 2025, saying the target was for 39 million international visitors and €98 billion in revenue for this year, including 10.6 million European visitors who are expected to bring €24.2 billion. The plan designates 2025 as "Amazing Thailand Grand Tourism & Sports Year" and includes visa facilitation for 93 countries, improved safety measures, and aviation infrastructure improvements to allow the handling of 250 million passengers annually. The main projects are expanding Suvarnabhumi and Don Mueang airports and building new facilities in the Andaman (southern) and Lanna (northern) regions. (Also read the below on airport infrastructure investment).
Read more: Bangkok Post
Casino Bill Moves Forward with New Entry Requirements
The contested Entertainment Complex Bill has undergone heavy revision, removing a 50 million baht wealth requirement for casino entry. The legislation now requires only a 5,000 baht entry fee and three years of tax returns from local visitors. The bill proposes five casino resorts in Bangkok, Pattaya, Phuket, and Chiang Mai. The casino regulations are said to be designed to reduce the level of illegal gambling while boosting tourism, which accounts for 20% of Thailand's economy. The regulatory framework includes a proposed 17% tax on gross gaming revenue.
Read more: Casino.org (Entry Requirements), Bangkok Post (Wealth Requirement)
Long-Stay Options For Different Demographics
Three distinct long-stay visa categories targeting different groups of foreigners have been announced. The Long-Term Resident (LTV) visa offers a 10-year stay with multiple entries for wealthy individuals and skilled professionals, requiring $1 million in assets or a half-million dollar investment in Thai assets, while offering a reduced 17% tax rate. The Destination Thailand Visa (DTV) is expected to cater to digital nomads with a 5-year multiple entry option and granting 180-day stays per entry. The premium Thailand Privilege Card Visa provides 5-15 year visas with luxury perks and amenities. Tourism authorities say they are reviewing the current 60-day visa exemption policy due to security concerns.
Read more: Bangkok Post
Environmental Concerns With Biomass Power
The National Human Rights Commission (NHRC) has expressed concerns about biomass power plants in southern Thailand. Currently, 16 companies are licensed to operate such plants in the deep South, with facilities below 10 megawatts exempt from environmental impact assessments. The NHRC identified several issues, including inadequate information disclosure by local agencies, pollution from ash emissions and noise, and strong local opposition to projects in Yala's Yaha district. The commission is recommending the Energy Regulatory Commission require detailed project information, the offering of more public hearings, and better human rights due diligence.
Read more: Bangkok Post
Electricity Market Reform to Lower Prices
The power sector is under pricing pressure with rates fixed at 4.15 Baht per kWh, heavily reliant on natural gas which powers more than 60% of the grid. Energy experts, including former minister Piyasvasti Amranand, are saying there is a need for a market overhaul after the Council of State rejected ERC's proposal to adjust renewable energy power purchase agreements. The arguement is that opening up the power market to free competition could lower electricity prices by allowing producers to sell directly to consumers. The current system, where the Electricity Generating Authority of Thailand (EGAT) acts as a single buyer, limits market flexibility. Energy Minister Pirapan Salirathavibhaga is pushing to reduce power bills by adjusting the management of Pool Gas; his plan aims to bring electricity prices below 4 baht per kWh.
Read more: Bangkok Post (Competition), Bangkok Post (Gas Price Adjustment)
Ethanol Revolution For Biofuel Sector
There is a renewed (no pun intended) push towards ethanol production to meet climate commitments and energy transition goals. New technologies, including genetically modified yeast and advanced enzymes, are expected to result in a 10% boost in ethanol production efficiency from molasses and cassava feedstocks. Thailand says it will reduce fossil fuel dependence and achieve carbon neutrality by 2050, and as such, the government has extended its biofuels mandate to 2026, supporting demand for E20 and E85 fuel blends. Current annual ethanol production is 2 billion liters. Exploration of expansion into sustainable aviation fuel using alcohol-to-jet technology is also underway.
Read more: Dialog Earth
First Petroleum Exploration Auction in 17 Years
The first petroleum exploration auction in 17 years (Round 25), is offering nine petroleum fields in the northeastern and central regions. The offer covers 33,444.64 square kilometres, with seven areas in northeastern provinces and two in central provinces. The Department of Mineral Fuels expects to bring in 2 billion baht of investment during the exploration period, with potential petroleum discoveries estimated at 7 trillion cubic feet. Six to seven energy companies, including UAC Global and PTT Exploration and Production, have shown interest. The northeastern areas are particularly promising for gas discovery.
Read more: Bangkok Post
Thailand Unveils Financial Hub Vision
Deputy Finance Minister Paopoom Rojanasakul has introduced the Financial Hub program, in another attempt to set Thailand up as a useful regional financial center. The plan has four main pillars: globally competitive benefits, a modern regulatory framework, human capital development, and market access. Paopoom wants to bring in more than 100 financial institutions and will establish the Office of Supervisory and Promotion of Financial Hub Business (OSA) to support the plan. (Compare with Vietnam’s efforts along the same lines).
Read more: Nation Thailand
Tax Incentives Aim to Improve Market Listings
The Finance Ministry, under Minister Pichai Chunhavajira, is introducing tax incentives for companies listing on the Stock Exchange of Thailand. Companies can qualify for a reduced 10% corporate income tax rate on profits in excess of their three-year average after putting efficiency improvements in place, while regular profits will stay taxed at a 20% rate. The ministry has enlisted Sasin School of Management to help SMEs improve operational efficiency and modernize management.
Read more: Bangkok Post (Tax Incentives), Bangkok Post (Political Tension)
Poverty Risk Affects Millions
The National Economic and Social Development Council says that as many as 24 million Thai citizens are at risk of falling into multidimensional poverty. They say that already 6.13 million people (8.76% of the population) are dealing with it, although, for context, this is a 50% drop in the last ten years. The report also identified more than 7 million Thais as “poor” in 2023, with 1.35 million facing both financial and quality of life challenges. The Northeast and Central regions are the most vulnerable, with 70.5% of near-poor in the Northern/ Northeastern regions lacking pension security.
Read more: Nation Thailand
Uyghur Deportation Human Rights, Security Concerns
Vice Foreign Minister Russ Jalichandra has belatedly confirmed that multiple countries, including the United States, Sweden, and Australia, had offered to resettle 40 Uyghur refugees before their February 27, 2025 deportation to China. Despite these offers, the Thai government deemed them "unrealistic," claiming potential Chinese retaliation. The Uyghurs, detained in Thailand for more than a decade, were returned to Xinjiang despite warnings from the U.S., U.N., and human rights groups about the possible torture they would face on their return. The repatriation has led for heightened vigilance on security, citing potential retribution risks reminiscent of the 2015 Erawan Shrine bombing.
Read more: Benar News (Resettlement Offers), Nation Thailand (Security)
Aviation Technology Investments
Thailand is investing THB3.6 billion (US$106 million) to improve aviation infrastructure. The investment will grow annual flight capacity from 1.2 to 2 million flights, with funds distributed equally among three new international airports: U-Tapao Airport and Eastern Aviation City, Andaman International Airport, and Lanna Airport. Each facility will receive THB1.2 billion, with completion expected by 2029-2030. The plan includes digital tower systems meeting ICAO standards at major airports by 2026, with smaller airports to follow in 2027.
Read more: VnExpress
Internet Crackdown Sees 80k Sites Blocked
The Ministry of Digital Economy and Society has wrapped up a cybersecurity enforcement campaign, blocking 80,669 illegal online platforms between October 2024 and February 2025. The crackdown targeted three primary categories: online gambling sites (31,832 blocked), online misinformation and fraud platforms (21,939 blocked), and other illegal content (26,898 blocked). The crackdown, launched under the direction of the Prime Minister, is claimed to be in support of a safer digital environment by disrupting cybercriminal operations.
Read more: Nation Thailand
That’s it for this week, thanks for reading!
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