Thailand 20250808
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:
Cambodia-Thailand Ceasefire Efforts Underway
Border Clash Hammers Economy, People, Truth
Tariff Challenges
Infrastructure and Investment
Fragile Outlook for Tourism
Renewable Energy Expansion
Military: Gripen Over F-16, Subs Back on Track
Policy Updates: Alcohol, E-Cigarettes, Cloud
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Cambodia-Thailand Ceasefire Efforts Underway
Senior Cambodian and Thai officials held talks in Malaysia to agree on a ceasefire to bring a stop to border clashes that have so far displaced more than a quarter of a million people. ASEAN observers will monitor the situation to make sure the peace holds, but for the time being, both nations have committed to maintaining troop deployments and staying clear of provocations. Despite the ceasefire, accusations of breaches and misinformation (next article) haven’t come to a stop. Further talks may lead to more discussions on border control under ASEAN’s watch.
Read more: Al Jazeera (Ceasefire Violation Claims), News Az (Ceasefire Plan), Asian News Network (Terms of Ceasefire)
Border Clash Hammers Economy, People, Truth
The conflict has resulted in a $92 million monthly loss to tourism. Around 750,000 Cambodians left from Thailand as a result of the dispute (Cambodia's Labor Ministry says more than 30,000 daily returns) and closed borders have led to increased cargo charter demand. Cyber warfare has become a topic of news, and watching how each side engages in tarring the other with the way information is presented has been interesting to observe. Misinformation is still rampant.
Read more: Arab News (Labor Migration), Khaosod English (Tourism Impact), Air Cargo News (Cargo Demand), France24 (Cyberwarfare), IFJ (Press Freedom), Khaosod English (Scam Tactics), Bangkok Post (Information Control)
Tariff Challenges
Now that the US tariff number has been set at 19%, businesses are trying to figure out how exactly to navigate the new deal. Analysts are saying they expect GDP growth at 1.5-2%, with jewelry, rubber gloves, pet food, and home appliances expected to be especially challenged. Ongoing investment efforts are in search of high-value service offerings to soften the blow.
Read more: The Week (Tariff Challenges), Bangkok Post (Trade-offs), Bangkok Post (Trade Tensions)
Infrastructure and Investment
Thai Airways has started trading on the SET again after a “successful” rehabilitation. Plans are to grow the fleet from 78 to 150 planes by 2033 to try and make hay while the sun shines on rising Asian travel demand. True IDC has joined forces with Alibaba Cloud to build out digital infrastructure. The government's latest stimulus plan, valued at 18.4 billion baht, is centered on supporting Thai competitiveness and developing the nation’s human capital.
Read more: Bangkok Post (Airline Expansion), Bangkok Post (Investment Drive)
Fragile Outlook for Tourism
The outlook for tourism is still murky as the economy sputters, and the Thai baht's rise has made travel to Thailand relatively more expensive. Vietnam's tourism growth is a useful contrast with Thailand's dropping numbers- an exploration of what’s behind this divergence will help industry leaders focus on ways that they can stem the tide and once again get visitor numbers moving in the right direction.
Read more: Bangkok Post (Bookings Dip), Bangkok Post (Promotional Initiatives), Travel and Tour World (Poker Event Strategy)
Renewable Energy Expansion
Recent renewable energy efforts include IFC's commitment to fund solar projects worth USD 45.3 million. A push for sustainable aviation fuel (SAF) is underway with several international partnerships to support domestic SAF production. Tighter rules on environmental safety and increased investment in green technology show that Thailand remains on target to hit carbon neutrality by its 2050 goal.
Read more: Eco-Business (LNG Concerns), Travel and Tour World (SAF Initiatives), Bangkok Post (Solar)
Military: Gripen Over F-16, Subs Back on Track
The government has approved about $635 million for the purchase of four Gripen E fighter jets from Sweden to replace aging F-16s by 2028. The craft will be positioned at Wing 1 in Nakhon Ratchasima province. The decision comes after a ten-month evaluation that ended up favoring the Gripen over a U.S. upgrade offer, with reps saying that compatibility and long-term efficiency were the main factors. Separately, the Cabinet has resurrected a stalled Chinese submarine deal by switching to Chinese-made engines, avoiding cancellation after already having paid 60% of the contract value.
Read more: ScandAsia
Policy Updates: Alcohol, E-Cigarettes, Cloud
The Senate has approved the Alcohol Control Bill, loosening rules on the way alcohol can be advertised, while still keeping some limits in place to “uphold public health.” The WHO is going out of its way to praise Thailand's e-cigarette ban that’s aligned with the organization’s Framework Convention on Tobacco Control. On the tech front, regulators have been busy drafting guidelines for government cloud adoption to make sure that security, compliance, and efficiency are all weighed when making policy decisions.
Read more: Bangkok Post (Public Health Policy), Bangkok Post (Alcohol Regulations), Tilleke (Cloud Adoption Guidelines)
That’s it for this week, thanks for reading!
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