Thread: Thailand and the new coalition government

Thailand’s inflation turns negative amid falling energy prices, raising deflation concerns

Thailand’s inflation rate has turned negative for the first time in 13 months as energy prices continue to decline, signaling potential economic deflation risks.

As the second quarter begins, Thailand has reported a negative inflation rate for the first time in over a year. According to the Ministry of Commerce’s Trade Policy and Strategy Office (TPSO), April's inflation decreased by 0.22%, driven primarily by falling energy prices, including gasoline, benzene, and electricity rates. Prices of fresh vegetables and chicken eggs also declined, contributing to the overall drop.

Core inflation, which excludes fresh food and energy, rose by 0.98% in April. For the first four months of 2025 (January–April), core inflation increased by 0.91%.

Comparing April 2025 to April 2024, 270 essential goods and services saw price increases—such as pork, tilapia, bananas, instant coffee, vegetable oil, sweets, house rents, and diesel. Meanwhile, 145 items experienced price drops, including eggs, limes, long beans, coriander, cucumbers, chili, tangerines, laundry products, soap, shampoo, electricity, and gasohol. Prices of 49 items remained unchanged, such as tap water, boat and train fares, and first-class air-conditioned bus fares.

As of March 2025, Thailand's general inflation rate rose by only 0.84%, ranking it 24th lowest among 134 economies and 2nd lowest among the 8 ASEAN countries that report inflation data.

Looking ahead, TPSO expects the inflation rate in May 2025 to remain similar to April’s or decrease further, marking the second consecutive month of decline. A key factor is the continued drop in global Dubai crude oil prices, which significantly influences Thailand’s inflation basket—energy accounts for 12.18% of it.

The consistent decline in inflation since January—1.32% in January, 1.08% in February, 0.84% in March, and -0.22% in April—suggests that the annual rate could fall below the government's target range of 0.3–1.3% (with a midpoint of 0.8%). First-quarter inflation averaged 1.08%, slightly below the earlier forecast of 1.13%. TPSO now predicts that second-quarter inflation will drop by 0.1–0.2 percentage points, bringing it down to between 0.14% and 0.15%, largely due to lower fuel prices.

These developments have sparked concerns over potential deflation. However, TPSO Director Poonpong Naiyanapakorn believes that Thailand is unlikely to enter a deflationary period, expecting inflation to remain above zero for the rest of the year.

This year, the inflation basket was updated to better reflect current consumption trends. The number of tracked items increased from 430 in 2019 to 464 in 2025. Items removed include newspaper and magazine subscriptions, while additions include salmon, avocados, fermented fish sauce, electrolyte drinks, salad vegetables, smartwatches, electric chargers, dashboard cameras, and automotive window film. Air purifiers may be included in future revisions.

Looking forward, energy prices remain a crucial indicator to monitor. The government’s new cost-of-living measures—particularly a 17-satang reduction in electricity rates to 3.99 baht per unit, effective from May through the end of the year—are expected to further ease inflationary pressures. TPSO plans to revise its inflation forecast in June accordingly, said Poonpong.

Thailand’s inflation turns negative amid falling energy prices, raising deflation concerns

Thailand sets new rules to protect air passengers' rights

Thailand’s Civil Aviation Board has issued new rules enhancing protections for international flight passengers in cases of delays or cancellations, effective May 20.

The Civil Aviation Authority of Thailand (CAAT) has announced new passenger protection regulations under Civil Aviation Board Notification No. 101, which will come into effect on May 20, 2025.

The rules, approved by the Civil Aviation Board chaired by Deputy Prime Minister and Minister of Transport Suriya Jungrungreangkit, are designed to enhance the rights of passengers on both domestic and international scheduled flights.

Under the new regulations, airlines must provide support and compensation for international flight delays or cancellations without prior notice, especially when passengers have already arrived at the airport.

For Delays Over 2 Hours:

Airlines must offer complimentary food and beverages or coupons appropriate to the time of day and length of the delay.

Airlines must provide free communication tools, such as access to phone calls or email.

For Delays Over 5 Hours:

In addition to the above, airlines must:

Compensate passengers with THB1,500 in cash, or an equivalent in credit shells, travel vouchers, frequent flyer miles, or other forms of equal value, within 14 days of the incident.

Provide accommodation and transfers if an overnight stay is required.

Offer passengers the option to cancel their journey and receive a full refund, or alternative forms of compensation such as travel credit or vouchers.

For Delays Over 10 Hours:

Airlines are required to provide the same support as for delays over 2 and 5 hours, including complimentary meals, beverages, and communication tools. In addition, airlines must:

Immediately offer passengers the following options:

Cash compensation, to be paid within 14 days from the date of the incident, based on flight distance:

THB2,000 for flights not exceeding 1,500 kilometres

THB3,500 for flights between 1,500–3,500 kilometres

THB4,500 for flights over 3,500 kilometres

Or Compensation in alternative forms such as credit shells for future travel, travel vouchers, frequent flyer miles, or other equivalent substitutes, with a value no less than the cash amount, to be provided within 14 days.

Provide hotel accommodation and ground transportation if an overnight stay is required.

Thailand sets new rules to protect air passengers''' rights

Finance Ministry targets revenue boost through major tax reform

ThailandÂ’s Finance Ministry plans major tax reform by fiscal 2025 to boost revenue by 800 billion baht, aiming to raise the tax-to-GDP ratio to 18% .

The Finance Ministry is considering a comprehensive tax system overhaul with the objective of increasing ThailandÂ’s revenue-to-GDP ratio to 18%, which could generate an additional 800 billion baht annually, according to the ministryÂ’s permanent secretary.

Tax Reform Plan to Be Submitted in Fiscal 2025

Lavaron Sangsnit, Permanent Secretary of the Finance Ministry, stated that a major tax reform plan is currently being drafted and will be submitted to Deputy Prime Minister and Finance Minister Pichai Chunhavajira within fiscal year 2025.

The reform will encompass tax collection improvements across three key agencies: the Revenue Department, the Excise Department, and the Customs Department.

Targeting a Shift from 13% to 18% of GDP

Currently, government tax revenue from income tax, excise tax, and import duties stands at 12–13% of GDP. Lavaron noted that raising this figure to 18% would significantly enhance the country’s fiscal sustainability.

“If we increase tax revenue by 5%, we will generate an additional 800 billion baht per year,” he said. “This would enable the government to plan for a balanced budget instead of running a deficit. This is a challenge we must urgently address.”

First Half of Fiscal 2025 Sees Positive Revenue Trends

Pornchai Thiraveja, Director-General of the Fiscal Policy Office, reported that during the first half of fiscal 2025 (October 2024 to March 2025), the Finance Ministry collected 1.19 trillion baht in revenue.

Finance Ministry targets revenue boost through major tax reform

Thai schools juggle hot potato of new literacy-based curriculum

Some 4,400 state schools are preparing to introduce a new literacy-based curriculum when they open for the new semester later this month.

However, the Education Ministry’s policy shift has sparked controversy among experts.

“We only learned about this new curriculum two months ago,” said Athapol Anunthavorasakul, a lecturer at the Chulalongkorn University’s Faculty of Education.

“This literacy-based curriculum is a new concept in Thailand and the Education Ministry wants schools to experiment with it,” Athapol said of the shift from the existing basic education curriculum.

Although education experts have discussed introducing a competency- or skills-based curriculum for the past several years, news of the literacy-based curriculum is only now reaching teachers, he said.

“This is all quite confusing.”

Instead, the new curriculum should have been planned openly, so the public – especially parents – would know what is going on, Athapol said.

He added that curriculum changes are normally announced several years in advance, citing Vietnam’s decision to introduce English as the second language in schools in 2035.

He said Hanoi had recently announced that schools had until 2030 to deliver a new curriculum that places stronger emphasis on English.

“We also need advance notice so we can prepare properly.”

However, Thai schools were only notified about the new curriculum in March, with teacher training held just last month. The new curriculum will be piloted in about 15% of Thailand’s 20,000 state schools.

“I just can’t see where we are headed,” Athapol lamented.

What’s new?

The Office of Basic Education Commission (Obec) wants schools to introduce the new curriculum at two levels – preschool (3-6 years) and Prathom 1-3 (6-9 years).

“Our preschool curriculum focuses on age-appropriate development, while the Prathom curriculum covers reading, writing, maths and other basic skills for lifelong learning and boosting student potential,” explained Thanu Wongchinda, Obec’s secretary-general.

He said the new curricula for both levels have been extensively researched and prepared based on academic principles, foreign case studies and best practices, while taking the Thai context into account.

Thanu added that Obec has also created online resources for schools and teachers, and set up an academic clinic to guide those who may be struggling to implement the new courses.

“We have held workshops and provided AI tools to help teachers design the course syllabus and class plans, as well as evaluate students,” he said.

Under the new curriculum, students in Prathom 1-3 will no longer be evaluated with the 0-4 grade point average (GPA) system, but instead on their reading, writing and maths skills. The new evaluation has four categories: beginner, developing, proficient, and expert.

Meanwhile, classes will no longer focus directly on the eight core subjects traditionally taught in Thai schools, namely Thai language, maths, science, social studies, health and physical education, arts, occupation and technology, and foreign language.

Instead, the subjects will be blended into classes that focus on basic skills. The teachers will work more as coaches and promote active learning among the students.

“We expect the new curriculum to serve as a milestone in upgrading Thailand’s educational quality,” Thanu said.

The new curriculum was prepared in response to a resolution issued last October by the Basic Education Commission, said Jaroonsri Jabthaisong, deputy director of Obec’s Bureau of Academic Affairs and Educational Standards.

“We are focusing on the new objectives of reading, writing, numeracy and functional literacy, which covers understanding of nature, healthcare, selfcare, society, art and music,” she said.

Will it work?

Athapol says Obec has rushed to introduce the new learning blueprint simply because Thai school curriculums have not been updated for some time. The current curriculum has been in use since 2017 and is very similar to its predecessor, introduced in 2008.

The radical change to the status quo has sparked anger among teachers, who have posted online complaints about the burden of training, studying new learning materials, and providing explanations to students’ parents.

“From reports I’ve heard, teachers feel like the Education Ministry has handed schools a hot potato and left them to struggle with it on their own,” Athapol said.

He also pointed out that some teachers oversee junior primary classes as well as Prathom 4-6 students, meaning they are now required to prepare separate sets of lessons following two different teaching methods.

Many teachers also have no idea what a literacy-based curriculum entails, and feel they have been given too little time to prepare for the new system, he added.

Meanwhile, trainee teachers are dreading the possibility of being employed at one of the 4,400 schools that are implementing the new curriculum, because they have only been trained in another type of curriculum.

“Teachers and students at schools experimenting with the new curriculum will become guinea pigs,” Athapol warned, adding that although Obec insists the change is voluntary, the 4,400 schools will obviously feel obliged to jump on the bandwagon.

Athapol also highlighted another potential issue for students: Prathom 3 students taught under the new curriculum this year may have to revert to the old system when they move to Prathom 4 next year.

He also wondered why Obec had not opted for the competency-based curriculum, which is already being tested, instead preferring something completely different.

“The competency-based curriculum has been tested at 184 schools in eight provinces at the primary education level, with trials due to conclude next year,” he pointed out.

What’s next?

Obec chief Thanu said that if the new curriculum proves effective at the junior primary level, then similar education blueprints will be designed for higher levels, including senior primary (Prathom 4-6) and secondary (Mathayom 1-6).

“Our goal is to develop the potential of Thai children and ensure they are ready to meet challenges of the fast-changing world,” he said.

Thanu also assured that students would not have a problem transferring credits between schools that use different curricula.

“We will ensure that any change goes smoothly,” he said.

Thai schools juggle hot potato of new literacy-based curricu

Cabinet to deliberate 2nd phase of 20-baht flat fare for electric railways

Cabinet to consider expanding 20-baht flat fare to four more rail lines, aiming for cheaper commutes across Bangkok by September 2025.

The Transport Ministry is set to propose the second phase of the 20-baht flat fare policy for electric railways to the Cabinet for approval this month, a senior official confirmed on Monday.

Proposal Covers Four Additional Rail Lines

Pichet Kunadhamraks, Director-General of the Department of Rail Transport (DRT), said the department has submitted a proposal to extend the 20-baht flat fare scheme to four additional electric railway lines. The ministry is currently preparing to forward the proposal to the Cabinet for final approval.

The proposed second phase would include the Blue Line, Yellow Line, Pink Line, and Green Line, enabling commuters in Bangkok and surrounding provinces to pay a flat fare of 20 baht per trip instead of the current, often higher, fare structure.

Flat Fare Policy a Key Election Promise

The 20-baht flat fare was a key campaign promise by the Pheu Thai Party. The pilot phase began in October last year, covering the state-run Red and Purple Lines, both of which have seen record-high passenger numbers since its implementation.

Pichet said the second phase is expected to receive Cabinet approval within May 2025, with implementation planned by September 2025.

Adjustments to Concession Contracts Underway

Relevant government agencies involved in electric railway concessions are working on revising their contracts to comply with Public-Private Partnership (PPP) guidelines and the new flat fare structure.

Cabinet to deliberate 2nd phase of 20-baht flat fare for electric railways

PM believes Thaksin and Newin can talk things out

Prime Minister Paetongtarn denies House dissolution rumours, affirms government stability, and expresses confidence that Thaksin and Newin can engage in dialogue.

At Government House on May 13, Prime Minister Paetongtarn Shinawatra addressed the media following the weekly cabinet meeting, firmly denying rumours of a potential dissolution of the House of Representatives.

Upon being questioned about the speculation, the Prime Minister responded with a light laugh, stating that members within the Pheu Thai Party themselves were puzzled by the rumour.

“Many in the party have asked about it because they don’t understand why such speculation is circulating,” she said, before redirecting the question to the media: “Why would the House be dissolved?”

Reporters suggested the rumour stemmed from concerns that a coalition party might reject the 2026 fiscal budget bill in protest over alleged collusion related to the selection of senators. Prime Minister Paetongtarn dismissed the claim, emphasizing that the budget process is a collective responsibility shared among all coalition parties. “There is absolutely no basis for such speculation. There has been no discussion or indication of dissolving Parliament,” she asserted.

She further noted that Deputy Prime Minister and Minister of Interior Anutin Charnvirakul, leader of the Bhumjaithai Party, is currently on medical leave following eye surgery and has not indicated any dissatisfaction. “He confirmed there is no issue whatsoever. He requested a few days off, and I wish him a swift recovery,” she added.

PM believes Thaksin and Newin can talk things out

Thailand Launches "G-Token": A New Digital Route for Government Borrowing and Public Investment

Bangkok unveils its first government-backed digital token, offering a novel way for citizens to invest in state debt

Thailand has unveiled its first government-backed digital token, dubbed "G-Token" or "Thailand Digital Token," in a bid to broaden public investment opportunities and create a fresh avenue for state fundraising.

The initiative, approved by the government, will initially see tokens issued with a total value of approximately 5 billion baht.

The Ministry of Finance anticipates the launch within the next one to two months.

The G-Token represents a digital iteration of government debt, akin to traditional bonds but leveraging modern digital technology. Investors will be entitled to the repayment of their initial investment along with interest, in accordance with terms set out by the Ministry of Finance.

This new financial instrument operates within the existing legal framework, primarily the Public Debt Management Act of 2005, which grants the Ministry of Finance the authority to borrow funds, and the Digital Asset Business Decree of 2018, which regulates the issuance and trading of digital tokens under the supervision of the Thai Securities and Exchange Commission (SEC).

G-Tokens offer several distinct advantages over conventional government bonds.

Being digital assets, they can be traded on specialised digital platforms, potentially offering easier access for smaller retail investors to participate in public debt.

The digital format also promises greater trading flexibility through licensed digital asset exchanges, with ownership verified using digital systems.

The Ministry of Finance has outlined that individuals, non-profit legal entities, and other designated legal entities will be eligible to purchase G-Tokens.

Investments can be made through licensed digital asset exchanges, digital asset brokers, and other legally authorised entities.

The investment process will involve opening an account with a SEC-approved provider, reviewing a prospectus detailing the token's specifics (issuance amount, maturity, interest rate, transfer conditions), placing a buy order, making payment, and receiving confirmation of the G-Token holdings in the investor's digital asset account.

Holders of G-Tokens will be entitled to receive their principal back upon maturity, along with interest payments as specified by the Ministry of Finance. They will also have the right to trade and transfer their tokens through the designated digital asset platforms.

The Ministry of Finance will determine the procedures for interest payments and the redemption of the G-Tokens, with payments expected to be made electronically to holders via their registered accounts, following the schedule outlined in the prospectus.

Potential investors should be aware of certain considerations, including the potential for limited initial liquidity in the secondary market, the need for a basic understanding of digital asset technology and platforms, possible future regulatory changes, and the impact of interest rate fluctuations on the token's market value.

Thailand Launches "G-Token": A New Digital Route for Government Borrowing and Public Investment

Changan Automobile meets Thai Prime Minister ahead of EV plant opening

Changan Automobile met with Thai Prime Minister Paetongtarn Shinawatra on Wednesday ahead of the official opening of its electric vehicle (EV) manufacturing plant in Thailand.

Board of Investment (BOI) secretary-general Narit Therdsteerasukdi said the Prime Minister expressed her appreciation to Zhu Huarong, chairman of Changan Automobile, for the company’s confidence in Thailand.

She also encouraged the company to support Thailand’s role as a global production hub for EVs.

Discussions were held regarding the establishment of a Technology and Engineering Centre, as well as plans to relocate the company’s regional office from Chongqing to Thailand to oversee operations across the Asia-Pacific.

This aligns with the Thai government’s policy to promote research and development, enhance technology and innovation, and improve national competitiveness.

Changan Automobile is one of the four largest automotive manufacturers in China. It established a presence in Thailand in 2023 and chose the country as the location for its new factory to produce right-hand drive EVs for both domestic sales and exports to various regions.

The grand opening ceremony will take place at Changan Automobile’s EV manufacturing facility in the WHA Eastern Seaboard Industrial Estate 4 in Rayong Province on Friday (May 16).

The company aims to use 65% locally sourced raw materials and components by the end of this year, increasing to 80% by 2028. It also plans to transfer technology to Thai parts manufacturers and increase local employment from 600 to 2,000 by 2026, accounting for 90% of its total workforce.

Changan Automobile has received investment promotion privileges from the BOI, with an initial investment of over 10 billion baht and a production capacity of 100,000 vehicles per year, which is expected to double to 200,000 units in the future.

The company’s headquarters in China has also approved the establishment of a Technology and Engineering Centre in Thailand to serve as a hub for the development of right-hand drive vehicle technology and engineering in the region.

Changan Automobile meets Thai Prime Minister ahead of EV plant opening

Ministry to propose extending soft loan programme for Deep South to 2027

The goal is to ensure that entrepreneurs in these areas can continue running their businesses with sufficient liquidity.

The Finance Ministry is preparing to propose to the Cabinet an extension of the soft loan programme for the three southern border provinces until the end of 2027, along with an increase in the loan fund by 15 billion baht to support local businesses affected by ongoing unrest in the region.

The current phase of the programme will expire at the end of June.

Deputy Finance Minister Paopoom Rojanasakul revealed on Wednesday that the extension is a response to the persistent instability in Yala, Pattani, and Narathiwat provinces, which has disrupted business operations and deterred investment. The goal is to ensure that entrepreneurs in these areas can continue running their businesses with sufficient liquidity.

Under the revised proposal, the Government Savings Bank (GSB) will provide a total of 15 billion baht in soft loan funding to participating financial institutions, including both commercial banks and specialized financial institutions. These funds will be offered at a preferential interest rate of just 0.01% per year.

Participating banks will then re-lend the funds to eligible entrepreneurs in the affected areas, including not only the three southern border provinces but also four districts in Songkhla Province: Thepha, Chana, Na Thawi, and Saba Yoi.

Loan eligibility includes both existing borrowers from previous phases of the programme and new applicants seeking working capital to maintain business operations or funding to expand their enterprises. The maximum loan amount per borrower is set at 20 million baht.

Paopoom emphasized the government’s continued concern over the unrest and its commitment to ensuring that local businesses have access to the financial support needed to recover and sustain operations.

“The soft loan programme is intended to reduce financial burdens, especially interest costs, while boosting business confidence and encouraging further investment in the region,” he said. “In the long run, this initiative is expected to contribute to the financial and economic development of the southern border provinces.”

Ministry to propose extending soft loan programme for Deep South to 2027

Thai govt scraps 10,000-baht handout, redirects budget to new economic stimulus plan

This decision comes amid escalating global economic uncertainties caused by the trade war and the recent imposition of U.S. tariff measures

The government has scrapped its plan to distribute 10,000 baht via the digital wallet programme—one of its flagship policies—and will instead reallocate over 150 billion baht toward a new economic stimulus plan.

This decision comes amid escalating global economic uncertainties caused by the trade war and the recent imposition of U.S. tariff measures, which have affected the global economy as well as Thailand’s exports and manufacturing sectors.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira stated that the Economic Stimulus Policy Committee, chaired by the Prime Minister, will meet at Government House on May 19. The Finance Ministry will propose new measures to stimulate the economy and mitigate the impact of the U.S.'s reciprocal tariff measures, which are expected to affect domestic businesses over the next one to two years. The most affected sectors include exporters, supply chain businesses, and manufacturers facing an influx of cheap foreign goods.

“Despite the challenges, the government remains committed to achieving GDP growth of over 3% in 2025,” said Pichai. “Additional stimulus measures will be introduced, with a focus on tourism and real estate, to prevent potential risks in these sectors.”

A source from Government House revealed that the economic uncertainty expected in the second half of 2025 has prompted a complete overhaul of the stimulus plan. The government will now repurpose 157 billion baht from the central emergency and contingency budget to fund more targeted and timely economic initiatives.

The new plan will be structured as a package focused on addressing the impact of U.S. tariff hikes. It will prioritize production restructuring and liquidity support for affected businesses. As a result, the government has decided to cancel the 10,000-baht digital wallet handout for 2.7 million young people aged 16–20—previously budgeted at 27 billion baht—and redirect the funds to more suitable projects.

The decision will be formalized by the Economic Stimulus Policy Committee, using input from two key agencies—the National Economic and Social Development Council (NESDC) and the Bank of Thailand (BoT)—both of which opposed the third phase of the handout. Their recommendations will help the government explain to the public why the scheme was canceled, especially as it seeks to address a broader economic crisis.

Thai govt scraps 10,000-baht handout, redirects budget to new economic stimulus plan

Thai PM's first official visit marked the beginning of a "comprehensive strategic partnership" — a significant milestone as the region faces global uncertainties.

Thai Prime Minister Paetongtarn Shinawatra and Vietnamese counterpart Pham Minh Chinh on Friday (May 16) witnessed the exchange of eight cooperation agreements covering trade, investment, anti-drug efforts, and technology collaboration — marking a major step forward in bilateral relations.

The ceremony was held at the Hoi Truong Room in the Vietnamese Government House, Hanoi, Vietnam.

According to Government Spokesperson Jirayu Huangsap, the agreements include:

1. Memorandum of Understanding (MoU) on Economic and Trade Cooperation between Thailand’s Ministry of Commerce and Vietnam’s Ministry of Industry and Trade
2. Budget handover for joint anti-drug efforts targeting cross-border narcotics trafficking
3. MoU between EXIM Bank Thailand and Bank for Investment and Development of Vietnam to support green and high-tech industries
4. Letter of Intent between Khon Kaen University and FPT University to promote semiconductor training
5. MoU on cooperation (2026–2028) between Vietnam’s Ministry of Trade and Central Group
6. MoU between WHA and Hung Yen Province
7. Investment license granted to WHA by Thanh Hoa Province
8. MoU between AMATA Vietnam and Phu Tho Province

During a joint press conference, Paetongtarn expressed gratitude for Vietnam’s warm hospitality and emphasized that this first official visit marked the beginning of a "comprehensive strategic partnership" — a significant milestone as the region faces global uncertainties.

Key highlights from the bilateral discussions included:

• Boosting high-level exchanges, with Vietnam invited to the Mekong–Lancang Summit in Thailand later this year
• Celebrating 50 years of diplomatic ties in 2026
• Strengthening security cooperation: combating drugs, call center scams, human trafficking, and illegal fishing; including joint action against precursor chemicals and criminal networks
• Promoting economic connectivity via the “Three Connects” plan (supply chains, local economies, and green economy) aiming for $25 billion in trade
• Facilitating agricultural and livestock exports and logistics links to China via Vietnam
• Launching a direct flight route between Vietnam and Northeast Thailand — the first international connection for the region
• Promoting land and river transport across Thailand–Laos–Cambodia–Vietnam to boost trade and tourism

Thailand, Vietnam sign 8 key agreements to form comprehensive strategic partnership

Finance Ministry to propose new THB 157 billion economic stimulus plan

New plan aims to sustain 2025 GDP growth above 2%

A source from the Finance Ministry has revealed that the Economic Stimulus Policy Committee, chaired by Prime Minister Paetongtarn Shinawatra, will convene at 4:00 PM on Monday (19 May) at Government House to review its previous resolutions and reassess the allocation of the 157.4-billion-baht budget earmarked for economic stimulus, in light of changing economic conditions.

Lavaron Sangsnit, Permanent Secretary of the Finance Ministry, stated that the Prime Minister has tasked the ministry with re-evaluating how best to utilise the central budget to ensure maximum effectiveness and benefit for Thailand under the evolving economic landscape.

He said the ministry has been coordinating with the National Economic and Social Development Council (NESDC) and the Budget Bureau in drafting a proposal for the revised budget allocation. It will be presented to the subcommittee in the morning of 19 May, followed by submission to the main board, chaired by the Prime Minister, in the afternoon.

While the exact details of the new stimulus plan have not yet been disclosed to avoid confusion, Lavaron explained that the original budget — earmarked for Phases 3 and 4 of the Digital Wallet scheme — is now being reconsidered to ensure alignment with goals in investment, structural reform, and support for groups affected by new U.S. tariffs.

“Whether the 157 billion baht is sufficient or impactful depends entirely on how it's used. Stimulating consumption yields different results from investment-focused programmes,” Lavaron said. “The aim is to implement short-term measures that will deliver the strongest possible boost, with the goal of disbursing the entire amount into the economy by the end of the fiscal year in September 2025.”

He added that the global economic slowdown — exacerbated by new U.S. tariff measures — has affected Thailand as well. The government will strive to maintain GDP growth between 2.1% and 2.9%, with a minimum growth target of 2% for the year.

If the proposed projects exceed the 157-billion-baht ceiling, some may be trimmed, or additional funding may be reallocated from other budgetary sources through alternative mechanisms, Lavaron added.

Finance Ministry to propose new THB 157 billion economic stimulus plan

Govt enforces strict ban on rocket launches near airports during Bun Bang Fai Festival

Violators face up to 5 years in jail or 200,000 baht fine, or both

The government, through the Transport Ministry, has instructed the Department of Airports (DOA) to implement strict safety measures and public awareness campaigns regarding the launch of Bang Fai rockets, fireworks, fire lanterns, smoke lanterns, and similar airborne objects during the annual Bun Bang Fai (Rocket Festival), held across northeastern provinces between May and June.

The festival, known for its local cultural significance, has evolved into a competitive event where rockets are launched to greater heights, raising serious safety concerns for aviation and public safety.

Deputy Government Spokesperson Karom Phonphonklang stated on Saturday that this year, the government is emphasizing strict enforcement of air safety regulations around airports, aircraft flight paths, and surrounding areas. The objective is to prevent threats to aircraft operations, pilot visibility, and public safety.

Mandatory Permission and Coordination Required

Karom said anyone wishing to launch rockets must obtain prior approval from local officials at the subdistrict, district, or provincial level. Once permission is granted, officials must notify the nearest airport at least 7–15 working days in advance, including full names and contact numbers of at least two coordination persons, and exact coordinates of the launch site (latitude and longitude).

This information will be used to issue pilot advisories and ensure ongoing coordination with air traffic control during launch activities, he said.

Govt enforces strict ban on rocket launches near airports during Bun Bang Fai Festival

Commerce Ministry pushes Thai soft power at Cannes Film Festival 2025

The Commerce Ministry has led 12 Thai entertainment businesses to the Cannes Film Festival 2025 in France, aiming to generate trade deals worth no less than 1 billion baht.

Vuttikrai Leewiraphan, the ministry’s permanent secretary, stated that participation in this event, held from May 13–21, is part of efforts to promote Thai soft power internationally.

The Department of International Trade Promotion (DITP) has been appointed to establish the Thailand Pavilion, spanning 82 square metres, featuring business matching activities to provide Thai entrepreneurs with opportunities to expand their market reach globally.

"We expect Thai entrepreneurs to penetrate new markets and generate trade valued at no less than 1 billion baht," he said.

Vuttikrai further explained that 12 Thai companies are participating this year, comprising eight film and animation producers and distributors, three television drama and programme producers, and one company offering film and video-related services.

Moreover, several major business negotiations have taken place, including Mono Streaming, which has engaged in trade discussions with a Malaysian company interested in distributing Thai films. There is strong potential for further expansion of Thai content across multiple platforms, including cinemas and other media outlets.

Idol Factory, one of Thailand’s leading Y-series and Girls' Love (GL) content creators, has negotiated with companies from Vietnam and Hong Kong keen to purchase series for in-flight entertainment. Additionally, discussions have been held with a Brazilian firm looking to invest in the company.

Thai horror films continue to enjoy popularity in international markets, with the selection of Thai films for competition at the Cannes Film Festival 2025. Notable entries include A Useful Ghost, directed by Ratchapoom Boonbunchachoke, starring Davika "Mai" Hoorne and Witsarut "Most" Himmarat.

Commerce Ministry pushes Thai soft power at Cannes Film Festival 2025

Thai government opens rice export opportunities for small farmers

The government, led by Prime Minister Paetongtarn Shinawatra, has lifted restrictions on Thai rice exports, allowing small-scale farmers to export rice to global markets.

Government spokesperson Jirayu Houngsub explained the administration’s achievements on the occasion of its three-month milestone, highlighting efforts to dismantle monopolies on Sunday.

"All forms of monopoly increase costs for the people, making them poorer. The government will expedite the process of breaking up monopolies, particularly in the rice industry, with the goal of enabling farmers and SMEs to export rice worldwide," Jirayu said, quoting Paetongtarn.

He noted that, on May 14, the Cabinet approved a draft ministerial regulation concerning rice trade licensing fees. The key aspects of the regulation include a reduction in licensing fees for exporters of rice intended for international markets:

General exporters (previously charged 50,000 baht per licence with no registered capital requirement) are now divided into three categories:

• Exporters with a registered capital of 5–10 million baht: Licence fee of 10,000 baht
• Exporters with a registered capital of 10–20 million baht: Licence fee of 30,000 baht
• Exporters with a registered capital exceeding 20 million baht: Licence fee of 50,000 baht

Exporters of packaged rice: Licence fee set at 10,000 baht, reduced from 20,000 baht.

Additionally, the government has waived renewal fees for general rice exporters and packaged rice exporters who are registered with government agencies.

Thai government opens rice export opportunities for small farmers

Thai PM to visit UK and Monaco this week

The Thai prime minister will travel to the United Kingdom and Monaco, between May 21^st and 25th, to boost tourism and promote Thai “soft power,” said government spokesperson Jirayu Houngsub.

Prime Minister Paetongtarn Shinawatra will chair a ceremony on Wednesday to unveil the new logo of “Thai SELECT,” a certification issued by the Thai government to guarantee the authentic taste of Thai food products and restaurants both in Thailand and abroad.

She will present “Thai SELECT” certificates to 115 Thai restaurants during the event, Jirayu said.

The ceremony will also feature demonstrations of Thai cuisine, fruits, Hom Mali rice, as well as booths showcasing Thai tourism, traditional massage and Thai boxing.

The prime minister will meet with major food importers in the United Kingdom, followed by a meeting with the Association of Thai Businesses in the UK, to explore opportunities for expanding Thai food production there.

She will also visit leading Thai boxing enterprises in London, to discuss sports cooperation between the UK and Thailand, Jirayu said.

On Thursday, Paetongtarn will attend an in-store promotion of Thai products at the north-London Cricklewood branch of the Wing Yip Superstore.

On Friday, she will travel to Monte Carlo to discuss the possibility of Thailand hosting a Formula 1 city (street) circuit race.

Paetongtarn will also attend the Formula 1 Tag Heuer Monaco Grand Prix.

Thai PM to visit UK and Monaco this week Thai PBS World

Thailand and Indonesia set to become strategic partners

Thailand and Indonesia have agreed to raise their bilateral relations to a “strategic partnership”, strengthening cooperation in security, trade, investment, food security, tourism and people-to-people exchanges.

The agreements are the outcomes of bilateral talks between Thai Prime Minister Paetongtarn Shinawatra and Indonesia’s President Prabowo Subianto, who is visiting Bangkok at the invitation of the Thai leader.

Prabowo’s two-day trip marks his first official visit to Thailand since assuming office in October last year, and the first official visit to Thailand by an Indonesian president in 20 years.

This morning, the Indonesian president and the Thai prime minister inspected a guard of honour at Government House, before witnessing the signing of agreements and Memoranda of Understanding.

At a press briefing, President Prabowo praised the bilateral discussions, which were the first conducted under the newly established “Leaders’ Consultation” framework.

According to a statement from Thailand’s Government House, both leaders will formulate a plan of action to advance the strategic partnership. They also pledged to collaborate on the prevention and suppression of transnational crime, especially online scams and human trafficking.

On the economic front, both countries agreed to boost bilateral trade and investment, under the framework of the Joint Trade Committee (JTC).

In addition, they endorsed the establishment of a “Halal Task Force”, aimed at raising the standards of halal food production.

Thailand and Indonesia set to become strategic partners Thai PBS World

Phumtham hints at proceeding with Chinese submarine deal

Deputy PM Phumtham hints at proceeding with China submarine deal despite engine issues, aiming to finalise decision by late May or early June.

Deputy Prime Minister and Defence Minister Phumtham Wechayachai on Tuesday strongly hinted that he would proceed with the planned procurement of a submarine from China, despite it not being equipped with a German engine.

Final Decision on Submarine Project Expected Soon

Speaking to reporters before attending the weekly Cabinet meeting, Phumtham said he would make a final decision on the long-delayed submarine project by late this month or early next month. He plans to submit his decision for the Cabinet’s final approval.

Phumtham Suggests Project Likely to Go Ahead Despite Engine Issue

Phumtham declined to explicitly confirm whether he would proceed or cancel the deal but suggested the former. He stated that if the project was cancelled solely due to the inability to acquire a German engine, Thailand would be unable to recover the 80% of costs already spent—around 7 billion baht.

Chinese Diesel Engines Seen as Reliable Alternative

Indicating his preference for moving forward, Phumtham revealed that he had investigated the Chinese-made diesel engines and found no issues with their performance in submarines.

German Engine Unavailable Due to Arms Embargo

Phumtham ruled out the possibility of obtaining a German diesel engine for the Yuan-class S26T submarine due to arms embargoes on China. The European Union has maintained an arms embargo on China since the Tiananmen Square crackdown in 1989.

Official Attempts to Procure German Engine Were Unsuccessful

The Thai Navy chief had asked his German counterpart about the possibility of Thailand purchasing the German-made MTU396 engine directly to be fitted on the Chinese submarine. However, the German Navy chief responded that it was impossible because Germany must comply with the EU embargo and similar NATO resolutions.

Phumtham hints at proceeding with Chinese submarine deal

Cabinet approves THB 157bn budget to boost economy

The new stimulus plan will focus on promoting community economy, tourism, agriculture, and infrastructure

The Cabinet on Tuesday approved a new economic stimulus plan under a budget framework of 157 billion baht, as proposed by the Finance Ministry following the decision made at the meeting of the Economic Stimulus Policy Committee on Monday (May 19).

According to government spokesperson Jirayu Houngsub, the plan covers infrastructure for water management and transportation, tourism development, mitigating export impacts and enhancing productivity, community economy support, and more.

Its goal is to inject funds into the economy to preserve employment and lay a foundation for growth. The funding comes from the 2025 fiscal year’s annual budget, specifically the central contingency fund for economic stimulus and strengthening the economic system, he said.

Details of the 157-billion-baht economic stimulus plan are as follow:

1. Water infrastructure:

• Flood prevention during the rainy season and water storage for the dry season
• Water distribution to communities and agricultural areas nationwide
• Development and improvement of water supply systems

2. Transportation:

• Resolving traffic bottlenecks and missing links
• Enhancing safety for travel and freight transport
• Addressing railway and road level crossing issues
• Constructing and upgrading truck rest areas to enforce the Land Transport Act B.E. 2522
• Improving and developing roads connecting secondary cities, tourist spots, and production areas

Cabinet approves THB 157bn budget to boost economy

Public Health Ministry warns of arsenic and lead contamination in Chiang Rai rivers

Public Health Ministry warns of arsenic and lead contamination in Chiang Rai rivers; locals urged to avoid eating freshwater fish for safety.

The Public Health Ministry has issued a warning to local residents in Chiang Rai to avoid consuming freshwater fish caught from three main rivers after water tests revealed arsenic and lead contamination at several locations.

Contamination Found in Kok, Sai, and Mekong Rivers

Dr Weerawut Imsamran, Deputy Permanent Secretary of the Public Health Ministry, confirmed that water samples collected from the Kok River, Sai River, and Mekong River showed arsenic and lead levels exceeding safe limits. Sampling was conducted on May 1st and 2nd.

Contaminated sites along the Sai River include Ban Saew Village, Ban Hua Fai Village, the 2nd Thai-Myanmar Friendship Bridge, and Ban Pa Sang Ngam. Contamination was also detected in the Kok and Mekong Rivers flowing through Mae Ai and Mueang districts.

Health Risks from Consuming Contaminated Fish

The Ministry took prompt action after villagers reported unusual skin diseases on fish caught in the rivers. Dr Weerawut warned that consuming fish contaminated with lead and arsenic could pose serious health risks, especially to vulnerable groups such as children, pregnant women, and the elderly.

Exposure to these toxins may affect the nervous system, causing numbness in the fingertips. Prolonged exposure can result in a condition where the skin thickens and darkens, often referred to as "black disease," alongside irregular heartbeats.

Over 46,000 firms to be investigated for nominee practice, substandard goods

Commerce Ministry launched a sweeping crackdown on companies suspected of engaging in nominee practice and importing substandard goods.

Commerce Minister Pichai Naripthaphan on Wednesday (May 21) chaired the fifth meeting of the Committee on Foreign Goods and Business Violations to address illegal foreign business operations and substandard imported goods in Thai markets.

The meeting emphasized stricter measures against substandard imports, nominee business structures, and the illegal sale of foreign goods both online and offline. It also promoted the use of Thai labor and domestic materials while encouraging the private sector to fully leverage Free Trade Agreements (FTAs).

Pichai reported that in the past nine months, authorities under the committee have prosecuted 39,186 cases involving substandard or illegal products, resulting in damages of more than 2.074 billion baht. Additionally, they collected 1.796 billion baht in VAT on imported goods valued under 1,500 baht.

Furthermore, under the Notice and Takedown mechanism, over 10,378 illegal product listings have been removed from online platforms. In the crackdown on nominee businesses, 857 cases were prosecuted, with total damages exceeding 15.288 billion baht.

To improve operations, the meeting approved the appointment of Suchart Chomklin, Deputy Commerce Minister and Pol Lt Gen Pithaya Sirirak as advisors to the Subcommittee on Preventing and Suppressing Foreign Nominee Businesses, and the Subcommittee on Promoting and Upgrading Thai SMEs and Tackling Substandard Imported Goods, respectively.

Pichai stated that the Prime Minister considers this a high-priority issue and has instructed the Ministry to act proactively. He emphasized that as the global economy shifts rapidly, the risk of substandard and illegal goods flooding into Thailand is increasing, potentially harming local businesses — particularly Thai SMEs.

The government will use all necessary measures, especially enforcing labeling of product origins and fair competition regulations. The Trade Competition Commission will play a central role in legal integration and enforcement, with a clear directive to produce tangible outcomes quickly.

Over 46,000 firms to be investigated for nominee practice, substandard goods

Paetongtarn arrives in UK for talks on Thai market expansion

Prime Minister Paetongtarn Shinawatra and her delegation arrived in London on Wednesday for discussions on expanding Thai products, services and soft power.

The delegation includes senior officials from the Commerce Ministry, Tourism and Sports Ministry, and the Board of Investment (BOI), government spokesperson Jirayu Huangsab explained.

Upon arrival at Heathrow Airport at 10am (London time), the Prime Minister and her team proceeded to their first engagement in the afternoon. At 2.45pm, they met with the owners, executives, and trainers of Fight City Gym, Moorgate, in London.

The delegation was welcomed by Pimol Srivikorn, President of the National Olympic Committee of Thailand, and other officials. Discussions focused on creating new business opportunities and advancing Thailand’s soft power in sports, particularly the global promotion of Muay Thai as a cultural product.

Paetongtarn arrives in UK for talks on Thai market expansion
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Transport Ministry to meet taxi association over airport ride-hailing dispute next week

The meeting's goal is to resolve tensions following a protest on May 21, when more than 50 traditional taxi drivers gathered at Government House to call for action from the government.

The Transport Ministry will hold a meeting with the Public Taxi Drivers Association on May 28 to address ongoing concerns over fairness in airport taxi services, particularly the impact of ride-hailing apps at Suvarnabhumi Airport, which traditional taxi drivers claim are hurting their income and creating unfair competition.

Deputy Transport Minister Surapong Piyachote will chair the meeting, which will also be attended by taxi cooperatives, ride-hailing stakeholders, and related agencies. The goal is to resolve tensions following a protest on May 21, when more than 50 traditional taxi drivers gathered at Government House to call for action from the government.

The taxi groups, led by Woraphon Kamkhuntod, President of the Professional Public Taxi Drivers Association, presented a formal petition citing three major demands:

• Equal access and visibility for traditional taxis at Suvarnabhumi Airport, such as designated service points, clear signage, and information desks to help passengers find taxi stands—ensuring fairness with app-based services.
• A review and revision of laws and regulations governing app-based ride-hailing platforms to prevent inequality and protect smaller taxi operators and traditional service providers.
• A reconsideration or possible revocation of the permission granted to app-based vehicles to operate within Suvarnabhumi Airport.

In response, Surapong has tasked Airports of Thailand (AOT) with reviewing the accessibility and service models of public transport at the airport to ensure convenience and fairness. The Department of Land Transport (DLT) has also been instructed to compile the issues raised and consult with the association’s legal team to explore legal and regulatory solutions that balance competition with fairness.

“The focus is to ease the burden on traditional taxi operators while ensuring that passengers receive efficient service,” Surapong said, reaffirming that passenger welfare and choice remain the ministry’s top priority.

Jirut Wisaljit, Director-General of the DLT, added that Suvarnabhumi currently provides multiple public transport options—including buses, interprovincial coaches, meter taxis, app-based green-plate vehicles, and limousines—catering to diverse passenger needs.

He acknowledged the concerns raised by some taxi drivers who want app-based services removed from airport grounds due to declining ridership. However, he clarified that the airport must accommodate various service tiers.

The ministry emphasized that while dialogue will continue, any threats to shut down airport operations will not be tolerated and will be dealt with in accordance with the law.

The upcoming May 28 meeting aims to reach a practical resolution that allows both traditional and app-based services to coexist, with all providers adapting to evolving technology while ensuring consumer choice and fair competition.

Transport Ministry to meet taxi association over airport ride-hailing dispute next week

Dam construction proposed to block arsenic pollution in the Kok River

Deputy Prime Minister Phumtham Wechayachai has proposed the idea of constructing a dam across the Kok River, to block toxic contaminants, such as heavy metals discharged from unregulated Chinese-run mining operations in Shan state of Myanmar, from flowing downstream into Thai territory.

The Water Resources Department has been assigned by Phumtham to design a dam, equipped with the facility to filter contaminants from the water and sediments.

Other measures are being adopted by the government to address the problem of arsenic and other heavy metals detected in the Kok and Sai rivers, which are threatening the livelihoods of people living along the rivers in Chiang Rai and Chiang Mai provinces.

Other options include dredging of a 3km stretch of the Kok River in Muang district of Chiang Rai, to dispose of the contaminated sediments, and holding talks with Myanmar’s government, via the Regional Border Committee (RBC), scheduled to take place in Kengdung of Shan state from June 17th to the 20th, to address the problem of the unregulated mining operations in Shan state.

The frequency of the testing of water and sediment samples from the Kok, Sai and Khong rivers, by the Pollution Control Department, have already been increased.

A subcommittee, led by Deputy Prime Minister Prasert Chantararuangthong, has been appointed by the Cabinet to oversee the relevant agencies tasked with mitigating the problem.

Associate Professor Lalita Hanwong, a lecturer at the Faculty of Social Science at Kasetsart University, has expressed doubt, however, that the talks via the RBC would help much, because Myanmar’s government lacks full control over Shan state, which is also under the influence of several ethnic armed groups, especially the United Wa State Army (UWSA), which has direct control over the mining operations by Chinese firms.

She suggests that the Thai government should approach China for help, by applying pressure on the UWSA and Chinese mining firms.

Dam construction proposed to block arsenic pollution in the Kok River

Thai govt fast-tracks cleanup of Kok River arsenic contamination affecting Chiang Mai and Chiang Rai

The Thai government is urgently addressing the contamination crisis in the Kok River, which has affected residents in Chiang Mai and Chiang Rai provinces since March 2025.

Deputy Prime Minister Prasert Jantararuangtong, in his capacity as Chair of the National Environment Board, signed an order appointing a Subcommittee for Water Quality Management in Surface Water Sources, which he will chair himself to drive tangible solutions.

This subcommittee includes the Minister of Natural Resources and Environment and Deputy Interior Minister Theerarat Samrejvanich as vice chairs, alongside several key agencies. Their mandate is to analyze the situation and its causes in detail, devise solutions, restore contaminated water sources, alleviate public hardship, and crucially, engage in international negotiations to address cross-border pollution sources.

To date, authorities have continuously monitored water quality, sediment, aquatic life contamination, and bioaccumulation in humans. Satellite imagery and geospatial technology are being deployed to trace pollution sources. In addition, diplomatic and military mechanisms via the Regional Border Committee (RBC) between Thailand and Myanmar are being used to tackle pollution linked to neighboring countries.

The government places high priority on solving public hardship, and this subcommittee is a step toward more proactive and closely monitored remediation. The first meeting is scheduled for May 27, at Government House, where agencies will present progress reports and consider installing sediment traps in the Kok River to reduce arsenic contamination. Discussions with Myanmar’s government will also be held to seek a sustainable joint solution.

Teerachun Boonyasit, Director-General of the Department of Water Resources, announced that his department is collaborating with relevant agencies to urgently design an underwater sediment trap weir in Chiang Rai’s section of the Kok River. This aims to reduce concentrations of arsenic and heavy metals in the Kok, Sai, and Mekong Rivers before the water flows through communities, while maintaining ecological balance.

He explained that work began with aerial surveys of the river, conducted jointly by the Water Resources Department and the Civil Aviation Department, to collect topographical and hydrological data. This will be integrated with data from the Pollution Control Department to determine optimal trap locations—such as the number of traps, spacing, and the most effective sediment capture points.

The Director-General emphasized that this project does not involve constructing large dams or major barriers. The weirs will be specially designed for subsurface sediment filtration, capturing arsenic-rich particles before water reaches communities. Arsenic levels must meet national safety standards.

The project is currently in the design phase and is being fast-tracked for early completion. There are also plans to install CCTV cameras along the river to monitor flow and turbidity in real time.

Authorities are assessing all factors to ensure the sediment traps function efficiently without disrupting ecosystems or altering the river’s natural flow, which could otherwise cause erosion or environmental degradation.

Thai govt fast-tracks cleanup of Kok River arsenic contamination affecting Chiang Mai and Chiang Rai