Thailand 20250131: Persevering, Pugnacious, Unusual
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:
Air Quality Crisis Deepens
Chinese Scam Operations Under Fire
Economic Growth Forecast Cut
Casino Complex Plans Face Opposition
Tourist Safety Measures Expand
Infrastructure Push Continues
Chinese Investment Surges
Digital Asset Innovation Advances
Trade War Preparations Begin
Energy Transition Takes Shape
Free Trade Agreements Expand
SEC Powers Enhanced
Public Transport Integration Advances
Mobile App Crackdown Begins
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Air Quality Crisis Deepens
PM2.5 pollution has reached hazardous levels in 67 of Thailand's 77 provinces, with three provinces hitting critically high concentrations. UNICEF says that 13.6 million children are facing health risks from air pollution exposure. The government is calling for reducing sugarcane field burning, with factories now sourcing 90% of cane from non-burning plantations. Thailand plans to coordinate with ASEAN neighbors on cross-border pollution. Bangkok officials want the capital declared an air pollution control area as PM2.5 levels continue rising.
Read more: Bangkok Post (Pollution Levels), Nation Thailand (UNICEF Report), Nation Thailand (Sugar Industry)
Chinese Scam Operations Under Fire
Chinese authorities have identified 36 telecoms scam gangs operating in Myanmar's Myawaddy region, employing more than 100,000 people. Thailand and China are setting up a joint operations center to fight human trafficking and scam networks. Thailand's cabinet has approved stricter cybercrime measures requiring telecom operators to suspend suspicious SIM cards and banks to report mule accounts. The crackdown comes in the wake of several damaging high-profile cases, including Chinese actor Wang Xing's kidnapping.
Read more: SCMP (Joint Action), Nation Thailand (Gang Details)
Economic Growth Forecast Cut
Thailand's Finance Ministry lowered its GDP growth estimate to 2.5% from 2.7%. The 2025 outlook remains optimistic at 3%, helped along by increased foreign investment and a strong tourism sector. Private consumption growth is expected at 3.3%, with exports to rise 4.4%. The government wants to bring in 40 million visitors and THB3 trillion in tourism revenue for 2025.
Read more: Nation Thailand (Growth Revision), AGBrief (2025 Outlook)
Casino Complex Plans Face Opposition
A new NIDA poll shows nearly 60% of respondents oppose planned casino complexes and the legalization of online gambling. The Entertainment Complex bill proposes five resort complexes including casinos, with the finance ministry saying it will deliver 0.7% GDP growth post-construction. The Stop Gambling Foundation has launched a signature campaign calling for a referendum.
Read more: iGaming Business (Public Opposition), Gambling Insider (Location Plans)
Tourist Safety Measures Expand
An AI-powered smart city surveillance system is in the works following recent security incidents involving Chinese tourists. The system will connect to international databases for facial recognition and wanted persons tracking. Starting May 1, all travelers must complete an online TM6 form before entry into the country. A tourism levy implementation has been postponed while these security measures take priority.
Read more: Biometric Update (AI System), Thai Examiner (Entry Requirements)
Infrastructure Push Continues
Prime Minister Paetongtarn Shinawatra has ordered acceleration of several large infrastructure projects including high-speed rail, double-track railway, and the Land Bridge initiative to keep Thailand in its position as a logistics hub. The Transport Ministry is being called on to develop detailed plans and finish up feasibility studies with clear timelines. The government continues aviation hub development policies set in motion by the previous administration.
Read more: Bangkok Post
Chinese Investment Surges
Chinese manufacturers have set up 585 factories in Thailand with investments totaling 547.76 billion baht, creating 152,541 jobs across seven industries. Chinese investments are 14% of all foreign direct investments. The top three investors are EV manufacturers: BYD Auto, Great Wall Motor, and SAIC Motor-CP. Amata City Rayong Industrial Estate leads with 218.77 billion baht in investments.
Read more: Nation Thailand
Digital Asset Innovation Advances
The Bitkub Capital Group Holdings chairman spoke on Thailand's growing role in digital assets at WEF 2025 in Davos. The company announced plans for carbon credit and electricity tokens launching this year. TikTok's Singapore unit has received approval for a 126.8 billion baht data hosting services investment. Siam AI Corporation has secured approval for a 3.25 billion baht investment in AI-focused cloud services.
Read more: Bangkok Post
Trade War Preparations Begin
Thai businesses are girding themselves for potential US trade policy impacts under a second Trump term. Thailand ranks 10th among countries with trade surpluses with the US at $51.5 billion. Business leaders are calling for a government trade war room and skilled Washington lobbyists. The Commerce Minister plans a February US visit to discuss trade proposals as the US seeks to reduce its deficit.
Read more: Nation Thailand
Energy Transition Takes Shape
Thailand is going to put a carbon tax of 200 baht per ton of CO2 equivalent on oil and petroleum products, saying the levies will be tied into into existing tax structures without affecting retail prices. The Utility Green Tariff program launched at 4.21 THB per kWh, offering 2 billion kWh of green electricity for Q1 2024. Small modular nuclear reactors are under consideration in the Draft Power Development Plan for 2025-2037.
Read more: Kasikorn Research (Carbon Tax), Reccessary (Green Tariff)
Free Trade Agreements Expand
Thailand has signed its first FTA with European Free Trade Association states during WEF 2025. The Prime Minister announced plans to sign FTAs with all EU members this year. The agreements are expected to improve economic relations and promote cooperation in advanced technology, innovation, and sustainable development.
Read more: Asian News Network (EFTA Deal), Bangkok Post (EU Plans)
SEC Powers Enhanced
Finance Minister Pichai Chunhavajira plans an emergency decree to strengthen the hand of the Securities and Exchange Commission’s enforcement powers. Changes include direct case submission to prosecutors, stronger oversight of capital market professionals, and higher penalties for illegal short selling violations in order to expedite legal proceedings and build investor confidence.
Read more: Bangkok Post
Public Transport Integration Advances
Parliament has approved the Pheu Thai Party's draft bill for an integrated ticketing system with fixed 20-baht fares for electric urban train services. The Office of Traffic Policy and Planning will develop the system, with fare regulation by the Transport Ministry. The plan includes a fund to support transport operators and is intended to encourage public transport adoption.
Read more: Thaiger
Mobile App Crackdown Begins
The Personal Data Protection Committee has passed on 11 suspicious mobile applications to the Bank of Thailand for verification of personal loan service registration compliance. The investigation comes on the heels of concerns about pre-installed unlicensed loan apps on Oppo and Realme devices. The central bank can order service cessation for illegal operators.
Read more: Bangkok Post
That’s it for this week, thanks for reading!
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