Thailand Will Not Re-Criminalize Cannabis, Prime Minister Agrees To Regulate Industry Instead - What Made Him Change His Mind?

Zinger Key Points
  • Prime Minister Srettha Thavisin agreed that proper regulation is a better solution than reclassification of marijuana..
  • "I thank the prime minister for considering this matter and deciding on issuing an act," Deputy Prime Minister Charnvirakul said.
  • Uncertainty persists regarding how Thailand will regulate both medical and recreational cannabis.

Thailand’s Deputy Prime Minister and Bhumjaithai (BJT) party leader, Anutin Charnvirakul, confirmed Tuesday that Prime Minister Srettha Thavisin agreed that proper regulation is a better solution than reclassification. It's still not clear how both medical and recreational cannabis use will be regulated, but the announcement suggests a step back from proposed reclassification,  writes Bloomberg.

In June, the Thai government decided to reverse its 2022 marijuana decriminalization decision by relisting parts of the cannabis plant as a narcotic, starting January 1, 2025. While Thailand became the first country in Southeast Asia to allow legal recreational use of marijuana, it has never been properly regulated, resulting in a proliferation of cannabis shops across the country.

According to Tuesday's statement by Charnvirakul, whose party was instrumental in the decriminalization, Thavisin is now reversing course.

“I thank the prime minister for considering this matter and deciding on issuing an act,” Charnvirakul said, reported Reuters.

Read Also: Thailand’s Medical Marijuana Costs Increase 6X Triggering Recriminalization

Hunger Strike, Political Party Influence?

What led to the Prime Minister's change of heart?

Shortly after the Thai government issued draft legislation to reclassify cannabis, marijuana enthusiasts called for a scientific review and for cannabis to be regulated under a special law to address any issues of concern. Pro-cannabis activists quickly took things even further and began a hunger strike on July 10 to demand that the government listen to their views. The hunger strike ended after 10 days, and the organization behind it, Cannabis Future Network, announced the formation of a people’s committee with representatives from all relevant parties to study and analyze marijuana’s impact on society. The report is meant to be completed in two months and presented to the public and authorities in charge of marijuana regulation.

Charnvirakul also recently expressed opposition to cannabis reclassification, saying that the government's decision lacks convincing evidence to justify changing the status of marijuana. He also pointed out that politicians from his party have the right to vote against the proposal.

On the other hand, people supporting recriminalization of the plant also voiced their support. Last week, the Youth Network Against Cannabis (YNAC) and several other health advocacy groups gathered at the NCB’s headquarters to submit a petition for the change in status. According to the report, the petition was co-signed by 200,000 people.

Economic Benefits, Impact On Tourism

Since cannabis decriminalization more than 1.1 million people registered for licenses to grow and tens of thousands of pot shops opened their doors, the industry is projected to be worth $1.2 billion by 2025, unless new laws restrict it.

With so many cannabis operations, there's no doubt that re-criminalization would have an economic impact. Somkiat Nitiketkosol, owner of the "Suan Fah Yim" marijuana farm stressed that if the government proceeds with its plan it must offer assistance to farmers who are licensed to cultivate marijuana.

Furthermore, Thailand's Tourism Ministry reported Tuesday that it had 19.6 million foreign tourist arrivals from January to July 21 period, which is 34% more than in the same period a year earlier. The target for this year is 40 million foreign arrivals. Tourism is one of the biggest employers and contributors to the country's economy. Would cannabis reclassification impact Thailand's tourism industry, which is recovering from the pandemic?

It's possible, considering that the country is a popular destination for medical tourism and wellness travel and numerous wellness brands jumped on the opportunity quickly after decriminalization by upgrading its offers.

While there are no government figures on how many tourists come specifically to consume cannabis, Kueakarun Thongwilai, manager of a Bangkok pot shop, projects at least 70%-80% of his customers are foreigners, primarily from Asian countries like Japan, Malaysia, China and the Philippines, and some from Europe, writes the Associated Press. Singapore's Central Narcotics Bureau announced plans to randomly test people returning from Thailand. China's embassy in Thailand also cautioned Chinese tourists that consuming cannabis abroad could lead to penalties upon their return, as such actions are considered domestic violations.

It's hard to say if the protests against cannabis recriminalization, the Bhumjaithai (BJT) party's opposition, and potential impacts on the economy and tourism were responsible for the Prime Minister's decision to regulate, but they must have had some effect.

Read Next:

To learn more about cannabis regulation at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Photo: Courtesy of Nelson Antoine via Shutterstock

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Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.