Rewriting the Cannabis Playbook for A Continent
Thailand's circle back to decriminalization after the new Prime Minister's U-turn establishes a new sense and taste for reform across the Asia Pacific
A promotion from 2021; it’s time for the program to be reset with 3 years experience of a booming market and a country filled with experienced cannabis growers.
Links To Consider
Thailand decided. July 2024 was an inflection point in this country’s relationship with cannabis.
From now on, when a country in Asia proposes legalizing cannabis, to save hours of discussion and thousands of words in speculative blog posts, we can compare it to Thailand.
Thailand has emerged as the dominant variable in an equation of gradual relaxation of cannabis prohibition in Asia. This past month, the country took a notably progressive stance on cannabis, opting for a regulatory framework rather than criminalization.
This decision reflects a growing global trend towards decriminalization and legalization, recognizing the plant's potential economic, medical, and social benefits. By embracing regulation, Thailand aims to control the cannabis industry, ensuring quality standards, consumer safety, and tax revenue.
Government policy on cannabis in Thailand has become market-driven. The Cannabis Act will be aligned with cannabis business interests and put an end to the threat of the demolition of the — industry. This policy shift has several potential implications:
Economic Growth: The cannabis industry can create new jobs, generate tax revenue, and attract foreign investment.
Medical Benefits: Legal access to full-spectrum cannabis-based medicines can improve the quality of life for patients with chronic pain, epilepsy, and other conditions.
Social Impact: Decriminalization can reduce the burden on the criminal justice system and potentially decrease the stigma surrounding cannabis use.
Challenges such as ensuring product safety, preventing misuse, and addressing potential social issues will not be ignored; the new consensus is that these issues are most effectively addressed through common sense regulation and are often exacerbated by prohibition.
The Philippines: Cautious Progress on Medical Cannabis
The Philippines is poised to pass a bill allowing access to what they are calling medicinal cannabis. Though yet to be fully approved, the House passed the bill that allows CBD oil only, keeping the plant itself and THC illegal. If the assumptions that kept cannabis off the narcotics list in Thailand are correct, then CBD oil alone is a far cry from an efficacious medical cannabis regime.
On the other hand, many observers believe that CBD oil is only the first step in a legalization process that slowly socializes and normalizes medical cannabis so that a regime that looks much more like Thailand’s will be possible.
The Philippines' focus on medical cannabis reflects a more conservative approach. By limiting legalization to non-psychoactive isolates, the government aims to address health needs while mitigating perceived risks. This strategy may encounter obstacles, including:
Limited Supply: Restrictions on cultivation and production could lead to shortages and high prices.
Patient Access: Ensuring that patients have access to affordable and effective medical cannabis products may be challenging.
Public Perception: Overcoming negative stereotypes and misconceptions about cannabis will be crucial for the success of the medical program.
Thailand’s decisive abandonment of prohibition and anti-cannabis propaganda will certainly assist the friends of cannabis in The Philippines; I bet on increased relaxation of prohibition there and eventual trade between The Philippines and Thailand.
Japan: A Strict Approach to Cannabis Control
The good news out of Japan is that their CBD market increased sixfold from 2019 to 2023, and a bill was passed in December of 2023 to legalize CBD production. The bad news is that right now there is a push to tie ratification of the bill to a policy that restricts THC traces to 000.1 percent, effectively making CBD production impossible.
The government is keeping a nascent industry in suspense. Some commentators say “Charge!” I say “Hesitate”.
I would not run to invest time or treasure yet. Japan has other signals of deep-rooted stigmatization. There is still a willingness to deal harshly with those who possess it. The same bill that legalized CBD production also increased the punishment for simple possession of cannabis from 5 years in prison to seven and closed a loophole that was setting people free for lack of evidence of ownership.
Japan's proposed regulations on cannabis, with a strict cap on THC content, reflect the opposite end of the policy spectrum. This approach has two sides: A) aims to minimize potential harms associated with cannabis use while allowing for limited medical and industrial applications. B) aims to sabotage the process with onerous regulations that will shut down the nascent CBD sector. Both However, raise questions about:
Efficacy of Low-THC Products: Restricting THC levels may limit the therapeutic benefits of cannabis for patients.
International Comparisons: Japan's strict regulations contrast with the more permissive approaches of other countries, potentially hindering research and development.
Public Health Impact: By limiting access to cannabis, Japan may be missing opportunities to address public health issues related to pain management and mental health.
Morocco cannabis farmers go straight with help from the government: Aligning incentives for peace and legal uplift from poverty is working.
As early as 2021, the Thai government was promising favorable loans and guaranteed purchases to farmers who banded together to create community enterprises.
BAAC senior executive vice-president Somkiat Kimawaha said the move supports farmers who want to plant cannabis as an alternative to rice, cassava or rubber trees. The bank's loan for cannabis farming charges an interest rate of 0.01% per year for the first three years. Cannabis cultivation is expected to add 25-35% in revenue to farmers' existing tally from traditional crops.
He said, however, that successful cultivation of cannabis for medical or industrial use requires large investment, extensive care and vast knowledge. To plant cannabis also needs to be highly motivated because it demands close and attentive care.
Mr. Somkiat said the BAAC has granted cannabis loans totaling 5.1 million baht to 3 community enterprises, one each in Prachin Buri, Nakhon Ratchasima and Khon Kaen. The BAAC estimates 157 community enterprises, out of a total of 10,000 nationwide, have the potential to engage in cannabis farming.
Now that the irrational exuberance over so-called recreational cannabis has subsided, loans to community enterprises ought to be reset within a context of entrepreneurial innovation that reinvents medical cannabis in a more expansive mode.
The Opposition to Recriminalization in Thailand
Prohibitionists will always be with us, whether or not they have the ear of a novice Prime Minister. They will do what they can to reinvigorate the narrative that cannabis decriminalization is irresponsible and negligent of science and social wellbeing. Keeping records that bust the central myths of their narrative is always prudent.
Medical Reasons for Decriminalization
Thai Professor Highlights Medical Benefits of Cannabis Amid Negative Portrayal. Some have objected by noting that medical cannabis was never under threat. The professor has not responded to the criticism. Still, your humble reporter infers that the professor sees the impracticality of creating a successful medical legalization regime within a hostile environment in which a wrong move with cannabis could lead to arrest, incarceration and onerous fines. At the same time, anti-cannabis propaganda stigmatizes the plant and those who consume it.
Professional Reasons for Decriminalization
Director of Phuket Cannabis Association has a new spring in his step.
People have had easier, cheaper access to medical treatments while the move has spurred the growth of an entire industry. Thailand is the only country where cannabis is legal. It is undeniable that Thailand has generated a huge amount of income in the past few years from the cannabis market as well as encouraging more tourists to flow in Thailand,” he said. Cannabis has brought a positive impact on the economy, especially through tourism, and especially tourism to Phuket.
An increase in tourism brings positive support for a whole range of sectors, including hotels and hospitality, transportation and restaurants, he noted. “Also, cannabis-related tourism is year-round.
“Recriminalizing cannabis would affect the shops in Phuket, with many expected to close. The closures would result in the loss of around 6,000 to 8,000 jobs in Phuket and approximately 45,000 jobs in Thailand,” he added. “Although cannabis businesses do not currently pay any industry-specific taxes, the potential loss in VAT revenue for the government is significant, estimated to be around B10 billion or more if a 7% VAT were applied,” he continued.
The commercial real estate market in Phuket would also suffer due to the closure of over 2,000 shops, leading to increased vacancies, decreased property values and financial strain on related businesses such as suppliers and service providers, Mr Poonwarit noted. Some government officials are claiming that decriminalizing cannabis will hurt Thai youths, but they have yet to give any clear evidence or statistics of this, Mr. Poonwarit also argued.