Thailand 20250124: Lubricated, Straightforward, Persuasive
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:
Export Growth Bests Target
Border Crime Crisis Threatens Tourism
EFTA Trade Deal Finally Signed
Casino Legalization Inches Ahead
Chinese Investment Surge
Google Data Hub Coming
Population Decline Accelerates
Green Energy Push
PM Hunts Foreign Investment in Davos
Marriage Equality Takes Effect
Housing Program Overwhelmed
Biometric SIM Registration Mandated
Temple Seeks UNESCO Status
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Export Growth Bests Target
Thailand's exports grew 5.4% in 2024, reaching $301 billion and handily beating ministry targets. Imports rose 6.3% to $307 billion, creating a $6.28 billion trade deficit. Agricultural exports hit $52.2 billion (+6%) while industrial exports reached $237 billion (+5.9%). The Commerce Ministry is expecting 2-3% export growth in 2025, provided the economy is supported by stable global conditions.
Read more: Bangkok Post
Border Crime Crisis Threatens Tourism
Chinese tourist cancellations are rising after high-profile cases of visitors being lured into Myanmar-based scam operations. The Prime Minister has used new artificial intelligence video technology to address Chinese audiences in Mandarin about security measures in place for safety and security. Tourism operators are proposing a reduction of visa-free stays from 60 to 15 days. A Senate hearing has shown the potential involvement of corrupt Thai officials in transborder criminal activities, and Chinese authorities are speaking up in favor of stronger ASEAN cooperation against telecom frauds and human trafficking.
Read more: Thai Examiner (AI Message), Bangkok Post (Visa Review), Nation Thailand (PM China Visit)
EFTA Trade Deal Finally Signed
Thailand signed a Free Trade Agreement with the European Free Trade Association (EFTA) at the World Economic Forum in Davos. The agreement with Switzerland, Norway, Iceland, and Liechtenstein is Thailand's first FTA under the current government. Current bilateral trade stands at $11.8 billion. The pact is mostly focused on advanced technology, AI, data centers, and sustainable development. Implementation will require parliamentary approval within one year, but there is little to indicate that will be a problem.
Read more: Khao Sod English (Deal Details), Asian News Network (Economic Impact)
Casino Legalization Inches Ahead
The Cabinet has approved a draft Entertainment Complex Business Act to legalize casinos within larger entertainment complexes. The facilities must include hotels, convention halls, shopping malls, and theme parks, with casinos limited to 10% of total area. The People's Party is in support of the bill but is demanding strict regulations (and enforcement) on licensing, money laundering prevention, and gambling addiction protections. Economists say that clearer principles are needed to prevent illegal activities.
Read more: Bangkok Post (Political Support), Nation Thailand (Historical Context)
Chinese Investment Surge
Chinese investments in Thai industrial estates increased 43.1% year-on-year to 109 billion baht in 2024. Operating companies rose from 133 to 203, creating more than 30,000 local jobs. Waste management, recycling, semiconductors, and data centers have been the industries pulling in the most investment. The growth reportedly stems from companies looking for stable manufacturing bases outside China. Thailand competes with Vietnam, Malaysia, and Indonesia for these relocations, which are growing especially as fears rise about tariffs on Chinese goods in the United States.
Read more: Nation Thailand
Google Data Hub Coming
Google is building a cloud data center in Chon Buri, and it will be operational within two years. The company pledged support for Thai government organizations and signed an MOU with the Ministry of Education for digital skills training. Google committed to upskilling programs for Thai SMEs and discussed potential expansion of its production base in Thailand in talks with the Prime Minister in Davos this week.
Read more: Bangkok Post
Population Decline Accelerates
Thailand's population dropped by 100,000 in 2024 to 65.95 million. Annual births fell below 500,000 for the first time since 1949, with deaths exceeding births for four consecutive years. The total fertility rate of 1.0 places Thailand among ultra-low fertility nations. Projections suggest a decline to 40 million within 50 years, with the workforce expected to shrink as much as from 37.2 to 22.8 million workers.
Read more: VnExpress
Green Energy Push
Regulators have introduced a “utility green tariff” of 4.21 baht per kilowatt-hour for companies opting into renewable power. The rate is slightly more expensive than existing rates, but will be available to businesses that want to focus on CO2 emission reduction through one-year power purchase agreements. Energy authorities plan to make 2 billion units of renewable electricity available by April.
Read more: Bangkok Post
PM Hunts Foreign Investment in Davos
Prime Minister Paetongtarn met global business leaders at the World Economic Forum to boost investment in Thailand. Discussions with DP World, Nestlé, and Coca-Cola focused on infrastructure initiatives including the Landbridge project and rail developments. The PM especially was keen to talk up Thailand's potential as a regional logistics hub.
Read more: Asian News Network
Marriage Equality Takes Effect
Thailand became Southeast Asia's first nation to legalize same-sex marriage, with the Marriage Equality Act (ratified in October) taking effect yesterday. The law replaces gender-specific terms with neutral language in about 70 sections of the Civil Code, ensuring equal rights in marriage, adoption, inheritance, and medical decisions. More than 180 couples participated in mass wedding ceremonies nationwide. The change excludes four southernmost provinces governed by Islamic civil laws. The government is still expected to update more than 50 additional laws in favor of gender neutrality.
Read more: Al Jazeera (Implementation), Bangkok Post (Next Steps), Nation Thailand (Legal Changes)
Housing Program Overwhelmed
The government's "Home for Thais" affordable housing program website crashed as 12 million people registered on opening day. The program targets low-income individuals and new graduates. An exhibition featuring model homes is running until January 31 at Krung Thep Aphiwat Central (train) Terminal.
Read more: Bangkok Post
Biometric SIM Registration Mandated
The NBTC board has approved requirements for mobile operators to implement SIM card registration through "liveness detection biometric" systems. Operators face penalties ranging from warnings and fines to license revocations for non-compliance. Tourist SIM cards will be limited to 60 days maximum.
Read more: Bangkok Post
Temple Seeks UNESCO Status
Thailand is expected to soon propose Wat Phra Mahathat Woramahawihan for UNESCO World Heritage status. The 13th-century temple is a fusion of Brahmin-Hindu and Buddhist cultures with continuous religious use for 1,500 years. Reports say that UNESCO status could generate 500-750 million baht annually for local communities.
Read more: Bangkok Post
That’s it for this week, thanks for reading!
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