Thailand Needs to Make Up Its Mind About Cannabis
Thailand's mixed messages on Ganja; Ganja's benefits to an economy in crisis; stigma & propaganda; the primacy of dried cannabis flower; wholistic medicine, Thai traditional medicine & THC, and more
The Thai Prime Minister’s intention of relisting cannabis flower as a narcotic - or as he refers to his plan, “banning its recreational use”, foists upon the public a raft of confusion, conflict and worry.
Subscribe not only to keep up-to-date on regulations and their impact on the climate for the cannabis biz in Thailand but also for strategy break-downs, discussion on why legalization matters, smart integration of cannabis into health and wellness therapies and the future of cannabis in Asia Pacific.
Now that Thailand is going to require permits for producing and consuming cannabis, the Prime Minister needs to explain how doing the same thing without a permit would destroy civilization, turn the youth into zombies, make people go “skitzo,” and could even end up killing grandma. Come on, at least give us a good story!
“The kingdom plans to relist cannabis as a narcotic and issue permits only to those who grow and use it for medical purposes and research, Public Health Minister Somsak Thepsutin said.”
Not that this is the Health Minister’s idea, mind you. It’s the Prime Minister who claims that for the past two years, while the public was buying and selling decriminalized weed, Thai society was being destroyed by Ganja.
Thailand’s Mixed Messages on Cannabis
Thailand made history as the first country in Asia to decriminalize cannabis in June 2022, but now it looks like they’re thinking of making history again by reversing that decision. That’s right, the new Prime Minister, Srettha Thavisin, wants to make Thailand the first country to re-criminalize weed while still in the process of fully legalizing it.
Because nothing says progress like a good old-fashioned backslide into unscientific propaganda and threats to throw folks back in jail for smoking pot.
According to the new Prime Minister, the problems caused by cannabis in Thailand over the past two years of its ambiguously legal status are so huge that they outstrip any economic benefits the booming sector can bring to the country and its people.
Thai doctors, economists and politicians who understand the medicinal qualities of cannabis disagree. And they are pushing back.
Mr. Anutin, current Dep. Prime Minister and previously the Health Minister, is not thrilled with talk of relisting cannabis as a narcotic. Anutin’s advice during his campaign against the current Prime Minister is apropos of what he is saying today behind closed doors:
“On the issue of ganja, we need to fight prejudice with knowledge and proper understanding because our opponents are demeaning it.”
Back when Sretta was named Prime Minister and Anutin the Deputy, I called them the cannabis “odd couple” of Southeast Asia.
“The guy who believes cannabis is a destroyer of society is moving in with the boss of the party that led the movement for cannabis decriminalization. And he just made him deputy prime minister.
Anutin’s new roommate, the Prime Minister, represents a party that led a brutal drug war in the early 2000s; it is beyond dispute that during this time, cannabis users were sentenced to decades in prison, expats and tourists caught possessing cannabis were bribed, imprisoned and blackballed, while those accused of selling cannabis were hunted and killed without trials.”
Are the roommates headed to an ultimate showdown, or will they continue to play nice?
Big profits rolling in already: What to do?
Economists and industry leaders point out that Thai cannabis has been experiencing exponential growth and is expected to continue expanding over the next few years. Here are the estimated values in USD for the market from 2024 to 2026: (Imarcgroup.)
1. 2024: The Thai cannabis market is projected to be worth approximately $1.2 billion USD
2. 2025 The market is expected to grow to around $1.8 billion USD
3. 2026: Forecasts suggest the market could reach about $2.3 billion USD
The market's expansion is bolstered by significant foreign direct investments and partnerships aimed at enhancing production capabilities, product offerings and industry expertise. The StraitsTimes reports on the reaction from the new coalition:
The new anti-cannabis brigade is proposing a compromise: only cannabis buds are to be considered narcotics, while the leaves, stems, and seeds remain legal. That’s like saying, “We’re only banning the beer, not the foam or the glass.” It’s nonsensical. Especially since the medicinal benefits of cannabis flowers have been acknowledged by traditional Thai medicine for over a thousand years.
Yet, unlike alcohol, dried cannabis flower has undeniable medicinal qualities that can be accessed methodically and safely.
Whatever it is about THC and dried cannabis flower that has put a bug in his bonnet, the Prime Minister of Thailand did not learn it from the country’s Ministry of Health or the previous Cabinet. Both of these bodies agreed over four years ago that dried cannabis flower was a health benefit and should be decriminalized.
Assuming you haven’t been living under a rock for the past few years, you know the real the story: The efficacy of the whole cannabis plant, often with the THC in the dried flower taking the lead, in treating pain, insomnia, inflammation, morning sickness, Alzheimer’s, acute nausea caused by cancer treatment - and a host of other ailments that can lead to chronic disease - has been recognized by doctors and scientists across the globe.
One reason why Thailand has shown an openness to the scientific data and public opinion on medical cannabis is that the scientific method is leading to conclusions that verify what Thai Tradtional Medicine has been saying for any hundreds of years.
I hear you in the back whispering, “He only wants to ban recreational use, not medical.”
Here’s my response: If it were up to the Prime Minister of Thailand, medical cannabis would look like it does in Japan and South Korea. And if you don’t know or haven’t noticed, you’re not alone, because it’s nothing to write home about.
Those two countries have the same version of legalized cannabis that Thailand had before they delisted the plant in June of 2022. That is, medical cannabis is more of a booby prize than a market; a milksop thrown to activists and parents of children suffering from epilepsy who have been relentless in campaigning for access to cannabis-based drugs.
Japan for example just closed a loophole that was allowing those caught with cannabis to go free rather than face sentencing of up to seven years in prison.
But the true believers in a robust medical cannabis market here fear that “recreational use” is code for THC, the active ingredient found in the buds of the plant and are the cornerstone of every successful cannabis industry.
And sure enough, last week the Health Miniter announced the ban on THC in addition to what is known in the West as a Medical Marijuana Card.
“… only marijuana buds, which possess all the psychoactive compounds and are used for recreational purposes, will be outlawed.
The directive will also require that a permit be sought for planting, possessing, importing and exporting marijuana, which can be used only for medical and research purposes and other similar benefits.”
Since marijuana is the accepted international legal term for cannabis with buds that harbor THC, we can assume what is being talked about is a medical marijuana card for consumers and a license for producers.
True to form, the announcement of the new regulation, which will be written up somewhere down the road, keeps everything about as clear as mud.
One thing is clear: the Captain at the helm of this just-launched anti-cannabis ship, the new Prime Minister, has not had much time to study the issues.
Flawed Logic and Dubious Claims
To the degree that there is even a rationale for this partial ban, it’s based on some seriously flawed logic and outdated assumptions.
Here is one of the Prime Minister’s few public statements of his reasons for relisting cannabis flower as a narcotic.
The Prime Minister says the liberal cannabis policy has caused huge damage that outweighs any economic benefits. Really? Because it sounds like he’s been reading too many Reefer Madness pamphlets.
The reasoning behind this qualified reversal has not been made clear. There is little to go on beyond one bit of flawed logic and an oft-repeated fallacious assumption:
The logical fallacy: Drugs are a big problem, cannabis buds have drugs in them, therefore buds are a big problem. (Never mind that all the doctors in last year’s Thai Health Ministry asserted that the science dictates cannabis be decriminalized.)
The false assumption: Minors smoke less pot when it is criminalized. (Countless studies have concluded just the opposite. One example: Colorado's Teen Marijuana Usage Dips after Legalization.)
Economic Benefits of Thai Cannabis In A Time of Crisis
Southeast Asia is facing economic challenges reminiscent of the 1997-98 financial crisis. “‘Higher for longer’ US rates keep capital zooming out of the region, depriving markets of funds and putting pressure on currencies.”
The Thai baht looks set to continue its downward slide as economic fundamentals lose their luster. A shrinking current account surplus, dwindling foreign direct investment, and portfolio outflows are all weakening the currency.
Let’s take a second look at the legal cannabis boom that’s got the Prime Minister a bit rattled. He says cannabis legalization has caused more problems than it’s worth. But let’s break it down, because when you look at Thailand’s economic mess, legal weed looks like the sensible way out.
First off, Thailand’s economy isn’t exactly hitting the high notes. Post-pandemic, it’s been like watching a once-great band play a reunion tour—painful and slow.
In 2023, Thailand’s GDP growth was projected at a meh 3.7%. Compare that to Vietnam’s rockstar 6.5% and Indonesia’s solid 5.1%, and you see the problem.
Tourism? Yeah, remember that? It used to account for nearly 20% of Thailand’s GDP. But thanks to COVID, that sector took a nosedive and still hasn’t recovered. Meanwhile, Vietnam and Indonesia are luring tourists back with better recovery strategies.
Foreign investment? Thailand’s been about as attractive as a root canal. Investors are heading to Vietnam, thanks to its welcoming policies and lower labor costs. Thailand’s political instability and regulatory red tape aren’t helping.
And let’s not forget about poverty and unemployment. The poverty rate jumped from 6.2% in 2019 to 8.8% in 2020. Unemployment is up, especially in tourism and manufacturing. Basically, it’s a mess.
The Green Solution
Now, onto cannabis. Contrary to the Prime Minister’s doom and gloom, legal cannabis is Thailand’s best bet for a comeback. Let’s look at why this green revolution is a game-changer.
The Thai cannabis market is expected to be worth around $1.2 billion by 2024 and could hit $2.3 billion by 2026. That’s real money, folks. Revenue, jobs, and investments—cannabis can deliver them all.
Tourism Revival
Cannabis tourism is a thing, and Thailand’s uniquely positioned to cash in. Imagine tourists flocking to Thailand not just for the beaches and temples, but for cannabis wellness retreats. Integrate weed with traditional Thai medicine and you’ve got a niche market that’s ready to explode.
Health and Wellness Industry
Thailand’s already a health tourism hotspot. Adding cannabis to the mix? Genius. We’re talking innovative medical treatments and wellness products that could place Thailand at the forefront of global health tourism.
So, Prime Minister, with all due respect, cannabis isn’t the problem—it’s the solution. Thailand’s economic outlook is bleak compared to its neighbors, but the cannabis industry offers a green, sustainable way out. By embracing cannabis, Thailand can not only recover but thrive. It’s not just about getting by; it’s about moving forward.
Cannabis legalization - the real thing, with regulations, feedback loops and sensible enforcement - isn’t just reasonable; it’s essential.