Thailand 20251212
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:
House Dissolution Signals Early Elections
Border Conflict Blows Up Into Full-Scale Crisis
Economic Fallout From Border Spat Mounting
Democrats Want a Reset from ‘Zero’
Investment Momentum Defies Turmoil
Call for Regulatory Reforms Ahead of Election
Scam Network Crackdown Seizes $318 Million
Sustainable Finance for ESG
Digital Economy Roadmap Identifies Failures
Gold Trading Boom Leads to More Scrutiny
Labor Protections Expand for Parents
Russia Trade Forum Targets Diversification
House Dissolution Signals Early Elections
Prime Minister Anutin Charnvirakul announced the dissolution of the House last night, stating his intention to “return power to the people” in a Facebook post. The decision comes after a contentious parliamentary session over constitutional amendment vote thresholds, where the joint sitting of Parliament put the kibosh on proposals to reduce voting requirements and reinstated the requirement for one-third Senate approval for any changes to the constitution. The timing comes alongside other political tensions, and Anutin is possibly trying to avoid a no-confidence motion from the Pheu Thai Party. Elections are now expected in the first couple months of 2026.
Read more: Nation Thailand (House Dissolution), Bangkok Post (Amendment Process), NDTV (Political Context)
Border Conflict Blows Up Into Full-Scale Crisis
The border conflict between Thailand and Cambodia has erupted into the deadliest fighting since mid-2025, with more than 500,000 people displaced and at least 20 deaths so far. The violence sparked up again on December 7 when two Thai soldiers were injured, collapsing a ceasefire brokered by U.S. President Donald Trump in July and reinforced by an October peace accord. Both sides are sending out advanced equipment (including F-16 jets, drones, and tanks) while accusing each other of targeting civilian areas. Cambodia has withdrawn from the Southeast Asian Games in Bangkok over safety concerns, and Thailand has put a night curfew in four Sa Kaeo districts under martial law.
Read more: ABC News Australia (Displacement Numbers), The News Minute (Cambodian Casualties), DPA International (Thai Civilian Deaths), Arab News (SEA Games Withdrawal), Bangkok Post (Martial Law), Bangkok Post (Cambodian Position), Bangkok Post (Thai Stance), The Diplomat (Malaysian Mediation), South China Morning Post (ASEAN Limitations), Amnesty International (Civilian Protection)
Economic Fallout From Border Spat Mounting
The border clashes are threatening Thailand’s economic prospects, especially through the peak tourism season, with business communities alarmed by Prime Minister Anutin’s hardline stance of rejecting negotiations. Kasikorn Research Center thinks continued fighting could reduce GDP by 0.4%. Thai political scientist Surachart Bamrungsuk warns that the clashes threaten years of diplomatic progress and existing agreements on border relations, trade, and migrant worker policies. The Joint Boundary Commission’s work remains stalled for the foreseeable future.
Read more: Khaosod English (Tourism Impact), Bangkok Post (Restaurant Sector), Khaosod English (Diplomatic Risks)
Democrats Want a Reset from ‘Zero’
Abhisit Vejjajiva has been resurrected as leader of the Democrat Party with plans to revamp the party’s image after years of decline. After a warm reception in flood-hit southern Thailand, he spoke of challenges in transforming support into electoral wins because of undecided voters, even though some surveys show that he could get more than a quarter of the vote. Abhisit reflected on past missteps and said the party needed to rebuild “from zero” after failed strategies in previous elections. The party is trying to put forward younger candidates to distance itself from political dynasties and patronage networks.
Read more: Bangkok Post
Investment Momentum Defies Turmoil
Foreign investors appear to remain optimistic about Thailand despite the (never-ending) political instability, according to the Board of Investment. From January to September 2025, investment promotion applications almost doubled to a record 1.37 trillion baht, mostly foreign direct investment for “digital” and electronics. BoI secretary-general Narit Therdsteerasukdi says investment promotion policy is going to stay consistent regardless of who is in government. He claims that national strengths include Thailand’s physical location in Southeast Asia, successful promotion of S-curve industries, and Thailand’s role as a relocation hub for business diversifying out of China.
Read more: Bangkok Post
Call for Regulatory Reforms Ahead of Election
Kasikorn Research Center wants political parties to push regulatory and tax reforms before the 2026 election to support growth. Managing director Burin Adulwattana says reform should top the agenda to improve ease of doing business and update the tax system. For fiscal sustainability, K-Research thinks the VAT will rise from 7% to 8.5% by 2028, eventually getting to the 10% cap by 2030. The center also thinks GDP growth will come in at 1.6% for 2026, down from 2% this year. A tourism recovery is expected to be gradual, with 34.1 million foreign tourists expected in 2026 - that’s still below 2019 figures.
Read more: Bangkok Post
Scam Network Crackdown Seizes $318 Million
Thai authorities seized assets worth more than $318 million, including shares in Bangchak Corporation, linked to online scam networks operating across Southeast Asia. A total of 42 arrest warrants were issued targeting transnational operations, with 29 people arrested. The crackdown targets a network linked to Chinese-Cambodian tycoon Chen Zhi and Cambodian nationals Kok An and Yim Leak, suspected of laundering money through Bangkok Bank and Kasikornbank. The operation, led by the “Uproot Transnational Scammers” task force involving the Justice Ministry and Anti-Money Laundering Office, is part of a campaign against fraud in Thailand, Myanmar, and Cambodia, where criminal networks exploit more than 120,000 workers. Hong Kong and Singapore authorities previously seized $470 million in related assets.
Read more: VnExpress (Asset Seizure), Asia Times (Regional Operations), Whale Hunting (Background)
Sustainable Finance for ESG
The SEC wants to bring Thailand’s capital market into line with global sustainability standards by way of a three-year plan to develop ESG principles. All 800 listed companies on the Stock Exchange of Thailand are going to be required to disclose related information by 2031, starting with SET50 companies in 2027. SEC secretary-general Pornanong Budsaratrakool says the regulator will publish Thai translations of international sustainability standards and work with UK PACT on implementation.
Read more: Bangkok Post
Digital Economy Roadmap Identifies Failures
The World Bank published the Thailand Digital Data Infrastructure Roadmap report on December 5, identifying critical failings in the digital economy. Among other issues, Thailand lags ASEAN in advanced digital skills, with only 6% of the population using Generative AI as of March 2024. Current interpretations of the Personal Data Protection Act limit efficient data sharing, causing confusion. Government agencies suffer from data silos that hamper the delivery of public services. Thailand is slow to embrace cloud technologies, limiting potential. The roadmap proposes a five-year policy plan (2025-2029) to fix these issues.
Read more: Nation Thailand
Gold Trading Boom Leads to More Scrutiny
Hua Seng Heng, Thailand’s largest gold trading house, is expected to capture more than 5 trillion baht in revenue this year because of unprecedented gold prices and higher retail sales. CEO Tanarat Pasawongse credits the surge to low interest rates, a sluggish stock market, and geopolitical disruptions that are causing more Thais to invest in gold. Over the past decade, gold has appreciated about 10% a year, with a sharp rise last year prompting a rush to buy. The boom is now coming under more scrutiny from the regulators, with new reporting rules expected to improve transparency, but raising compliance costs for operators.
Read more: Bangkok Post
Labor Protections Expand for Parents
An amended labor protection law giving 15 days of fully paid parental leave to spouses after childbirth. Maternity leave has been extended from 98 to 120 days. Employers are to provide full wages for up to 60 days. Employees are also getting an extra 15 days of paid leave at half pay to take care of sick children.
Read more: Bangkok Post
Russia Trade Forum Targets Diversification
The Russian-Thai Investment Forum 2025 in Phuket brought together more than a hundred Russian businesses with Thai companies to look for investment opportunities beyond tourism. Former Thailand Trade Representative Umesh Pandey says the Forum is intended to promote trade and investment in both directions. Thailand-Russia trade was about $2 billion in 2024, but is still well below the $10 billion target set nearly a decade ago. Russian participants included AFK Sistema, Alfa Bank, and Rosatom.
Read more: Bangkok Post
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!