Cannabis Policy No Longer Going to be Reversed by the Thai Government

Paetongtarn Shinawatra, Thailand’s current prime minister, announced that the Thai government will continue supporting the legalization of marijuana and hemp for medicinal and business purposes. Most importantly, Paetongtarn has clarified that the Thai government will not turn its back on this policy as was planned by the previous government. 

What is the Hemp and Marijuana Control Bill?

On September 12, 2024, the Ministry of Public Health proposed a new bill revolving around regulating cannabis. Known as the Hemp and Marijuana Control Bill, this legislature would prevent further abuse of both plants by businesses and individuals. It also allowed the government to strengthen its rules surrounding the production, sale, and export of cannabis. 

Under the new policy, marijuana and hemp would only be used for the following purposes: 

• For medical reasons such as to prevent and cure illnesses
• For research and educational purposes, permitting organizations such as the Red Cross and public universities to make use of them
• As ingredients or byproducts such as herbs, medicine, food, and cosmetics 

Disobeying any of these directives will lead to serious consequences if caught. Punishments range from hefty fines to even possible jail time. Despite this, there’s still some leeway involved as this is still a much more lax policy than the one planned by the previous administration, which intended to relist cannabis as a controlled substance. The previous policy would have made nearly all production and use illegal again and caused the many cannabis businesses that have cropped up since legalization to shutter their operations. 

Why was this New Bill Implemented?

Thailand’s Public Health Minister Somsak Thepsutin was originally outspoken about the need to re-list marijuana and hemp as highly controlled drug substances. Somsak’s desire to re-list these two substances as Category 5 narcotics comes from numerous reported marijuana abuse cases, particularly amongst Thailand’s youth. However, no statistical data was provided to support this claim.

Despite this, cannabis played a very crucial role in the Thai economy. During her speech, Paetongtarn emphasizes the importance of the two substances on the Thai economy, stating that its sale could generate around 200 billion baht in annual income. 

Therefore, the new bill was introduced as a middle ground to continue benefiting from marijuana and hemp while preventing abuse. It would also still allow for the substance to be used under certain circumstances, allowing for greater protection of the general public without having to outright ban cannabis. 

The Government’s Continued Support Sees Lack of Backlash

The success of the new policy was punctuated by the support of those who were formally skeptical or opposed to it. Due to the lack of sufficient evidence and statistics in favor of the high misuse of cannabis leading to rising mental health problems amongst the youth population, Somsak promises to comply with it. 

With the Prime Minister’s announcement, Somsak ensures that the Public Health Ministry will be closely complying with the new policy. To continue protecting the general public, Somsak states that the ministry will instead switch courses to focus more on protecting children from being exposed to these narcotics.

The policy was also fully backed by the Thai Traditional and Alternative Medicine Department. The department’s Deputy Director-General, Dr. Thewan Thanirat, was pleased to offer his support, claiming that measures to prevent the misuse of cannabis while still legalizing it for medicinal and business purposes will alleviate concerns raised by the general public and medical staff. 

How Will This New Thai Cannabis Bill Affect Businesses?

Under this new policy, businesses that have invested in marijuana and hemp can rest assured knowing that they can continue to sell the product without the Thai government suddenly reversing course and wiping away billions in investments overnight. This higher confidence and less uncertainty should result in higher productivity and larger long-term investments in the industry. 

Because cannabis is still a controlled substance, Dr. Thewan recommends that any relevant business establishments be knowledgeable about the products they are selling. This would avoid problems down the line in case the business in question were to accidentally go against any of the regulations. To make this easier, he is willing to send members of his department to educate farmers on how to handle marijuana and hemp.

As a result of the new ganja policy, businesses will also need to acquire new licenses and permits to participate in the sale of cannabis. For instance, companies that will be extracting oil from both hemp and marijuana would need to be licensed by the Food and Drug Administration. Additionally, any oil they extract must have less than 0.2% of Tetrahydrocannabinol (THC) in it.

Setting Up a Cannabis Business in Thailand

With the new regulations planned and more stability for the industry secured, now is the best opportunity if you’ve ever thought of establishing a company in Thailand involved in the production and sale of cannabis. If you are a foreigner interested in opening a “Cannabusiness” in Thailand, then contact Siam Legal today. Our corporate team will work with you to set up your business, step-by-step, so you can make these dreams a reality.

Category: Administrative Law