Category: The Bangkok Post

Authorities have expanded a major suppression campaign against proxy businesses run by foreigners from southern tourist islands to the northern destination of Chiang Mai, where police say they have identified many suspected illicit operations.

A team of 188 police officers and administrative officials launched the anti-nominee business operation on Wednesday, said Pol Maj Gen Yutthana Kaenchan, the Chiang Mai provincial police commander.

He said authorities were following the government’s policy to tackle foreigners who illegally operate businesses through Thai proxies, causing negative impacts on the local economy and business competition.

‘Chiang Mai province has been identified as one area where the ‘Koh Phangan Model’ will be expanding,’ he said, referring to the active suppression of illegal foreign business activities on the tourist island in Surat Thani province.

Pol Maj Gen Yutthana said that authorities in Chiang Mai had already identified two hotels that violated the Hotel Act, three parties that breached the Immigration Act, a group of companies in which Thai proxies held assets illegally on behalf of foreigners, and 11 companies that did not have brick-and-mortar offices as claimed in their registration.

The Ministry of Digital Economy and Society has strongly defended the controversial TH-AI Passport project, rejecting allegations of procurement irregularities, bid-rigging and political favouritism.

Patchara Anantasilp, the ministry’s permanent secretary, on Thursday presented a detailed timeline of the project’s development, denying it had been rushed, as lawmakers intensified scrutiny of the 1.6-billion-baht initiative.

The hearing brought together MPs from two House committees: Budget Planning and Monitoring; and Legal Affairs, Justice and Human Rights. They asked questions about the project’s accelerated implementation timeline, procurement process, and potential links between the winning consortium and politically connected business interests.

Under the first phase of the project, the government plans to spend around 1.6 billion baht to procure professional and premium generative artificial intelligence models for 5 million Thais to use for free for one year.

The winning bidder was TH Consortium, which consists of Turnkey Communication Services Plc, a Thai ICT engineering solutions specialist, and Human Intelligence Co Ltd, a joint venture between Thai and Hong Kong investors building digital education infrastructure in Thailand.

Long-term AI strategy

Mr Patchara told the lawmakers that the policy objective underpinning TH-AI Passport – expanding public awareness and adoption of artificial intelligence technologies – dated back to May 2022 under the administration of former prime minister Prayut Chan-o-cha.

The initiative originated from the National Artificial Intelligence Action Plan and was subsequently incorporated into multiple national digital development frameworks, he said.

In May 2025, under the administration of former prime minister Srettha Thavisin, the national AI steering committee established an ambitious target of reaching 20 million AI users or AI-aware citizens by 2027.

Mr Patchara said the objective remained unchanged even after subsequent political transitions and the establishment of a permanent national AI committee under newly enacted legislation in 2026.

‘The target of enabling 20 million people to access and understand AI was not created overnight,’ he said. ‘It has been part of Thailand’s national AI roadmap for several years.’

AI adoption and digital skills development has become one of five urgent policy pillars of the current government, with authorities instructed to accelerate implementation during the first phase, he said.

DE Fund usage

A key point of contention involves the funding source for the project. Critics have said that financing the project through extra-budgetary funds circumvented normal parliamentary budget scrutiny.

Mr Patchara rejected those claims, explaining that when the current administration assumed office on Oct 1, available allocations under the ministry’s annual budget had largely been committed.

As a result, officials turned to the Digital Economy and Society Development Fund (DE Fund), which had about 2 billion baht in available resources.

He stressed that obtaining approval from the fund was not a simple administrative exercise but required extensive review by an independent committee comprising representatives from central government agencies and external experts in information technology and digital policy.

‘The approval process involves multiple layers of scrutiny. The committee responsible for reviewing projects is not made up solely of DE Ministry officials,’ Mr Patchara said.

The committee reviewed the project proposal, examined pricing assumptions and oversaw the preparation of the terms of reference before the procurement process proceeded in accordance with government regulations.

Procurement timeline

Responding to allegations that the contract for the project had been awarded just 34 days after bids were called, Mr Patchara said the development process stretched across several stages, beginning in 2025.

The steps included policy development, feasibility assessments, market testing, budget planning, drafting of terms and procurement procedures before the contract was signed on April 14, 2026.

‘The entire process took nearly a year. The narrative that everything was completed in 34 days is inaccurate and creates a misleading impression of how the project was actually developed,’ he said.

Terms of reference

Opposition representatives focused much of their questioning on amendments made to the project’s terms of reference.

Theerachart Kotrakul, an adviser to the opposition leader, asked whether ministry executives were aware of changes made after the project was presented to the cabinet’s economic committee.

They included the reduction of the implementation period from 90 days to 30 days, and the addition of required digital advertising screens located in convenience stores.

One requirement set out in the terms was for the winning bidder to promote the project on digital screens in at least 1,500 convenience stores in Bangkok and the provinces, totalling 6,000 screens.

Mr Patchara responded that the cabinet had approved only the policy framework and overall project objectives, not the detailed terms.

He compared the process to infrastructure development, arguing that implementation schedules are often adjusted when agencies determine that objectives can be achieved more quickly.

Regarding the addition of convenience-store media screens, he said the aim was to maximise citizen participation and public awareness.

‘The project’s success depends not only on the AI platform itself but also on public engagement. If people do not participate, the initiative cannot achieve its intended outcomes,’ Mr Patchara said.

The Royal Thai Navy (RTN) has denied allegations circulating on social media that it failed to act against the construction of a sediment-retention structure in disputed maritime areas along the Thai-Cambodian border.

The force insisted Thai authorities have opposed the project by Cambodia through all available channels and have prevented it from proceeding as originally planned. Claims that it had neglected its duty to protect national interests were based on incomplete information and could mislead the public about the facts surrounding the case.

The structure originated from a coastal area connected to a Cambodian private-sector development and is located in a maritime zone subject to overlapping territorial claims between Thailand and Cambodia. As such, the matter must be handled through established legal frameworks, the navy said.

Thai authorities, including the RTN, have closely monitored the situation since its inception and have lodged protests and objections.

As a result of these actions, the project owner was forced to halt construction and has been unable to complete the development according to its original plan.

The navy argued that social media posts citing photographs of the unfinished structure as evidence of official inaction were inaccurate. Instead, it said the current state of the structure is evidence of Thai efforts to stop further construction rather than any failure to act.

Regarding the dissemination of what it described as potentially misleading information, the navy said it has asked the Thailand Anti-Fake News Center to investigate the matter.

The RTN also said authorities are considering action against the Facebook page “Thai Burma Railway”, which it alleges published misleading claims about the issue. The navy said such action would aim to prevent potential harm to the public, public order, and national security.

The navy urged the public to exercise caution when consuming and sharing information.

A rising Scottish boxing star has died after falling from a tuk-tuk in Phuket, prompting an outpouring of tributes from his boxing club, while the Thai driver has been arrested and charged.

Colin Cairney, a 22-year-old undefeated welterweight champion, suffered critical injuries after the incident in the Patong area of Kathu district in the early hours of June 14.

He had remained in a coma and was receiving intensive treatment at Vachira Phuket Hospital, where he succumbed to his injuries, said his club, 1314 Boxing Club in Stirling, Scotland.

‘He was not just a member of the club, but family. He was an important part of Team 1314 and meant so much to many people,’ the club said in a tribute posted on its Facebook page.

According to CCTV footage and information provided by hotel security personnel, before the incident, Cairney had taken a red tuk-tuk from an entertainment venue to return to his hotel after a night of partying with friends.

However, a dispute reportedly arose over the fare, as he did not have cash to pay. It was agreed that the driver would take him to withdraw money from an ATM.

Video later showed the tuk-tuk travelling back towards Patong at 4.02am without dropping off the passenger. Cairney subsequently fell from the rear of the vehicle, striking his head on the road and sustaining severe injuries.

Cairney had travelled to Phuket for a holiday with relatives and friends from the United Kingdom, according to Pol Maj Surachart Thongyai, chief investigator at the Patong police station.

He said alcohol might have been a factor as the victim’s friends appeared intoxicated when they later arrived at the hospital. Blood samples have been collected for testing, with official results still pending.

A hotel security guard told police that Cairney had unsuccessfully attempted to exchange a card for cash at the hotel before deciding to withdraw cash to pay the fare, estimated at 300 to 400 baht.

A woman was seen leaving the hotel with him, but police investigators have not yet confirmed whether she was in the tuk-tuk at the time of the incident.

CCTV footage confirmed that Cairney fell from the vehicle alone, with no evidence of an assault despite earlier speculation. The tuk-tuk driver did not stop to render assistance after the incident. (Story continues below)

Driver questioned

Patong police have since located and questioned the driver, identified only as Kitpong, a 34-year-old native of Phatthalung province.

During questioning, the driver admitted picking up a foreign man and woman from the Bangla Road entertainment district and taking them to a hotel near Kalim Beach. Upon arrival, the tourists reportedly said they had no cash to pay the fare and asked to be taken to an ATM.

The driver said he then drove the male tourist, who appeared intoxicated, to three separate ATM locations, but all attempts to withdraw money failed. He subsequently decided to return the passenger to the original pickup point on Bangla Road.

While driving along Phra Barami Road near a hotel, Mr Kitpong said he was travelling at a normal speed when he sensed that something was not right with the vehicle. However, he did not stop to check.

After driving at about two kilometres further, he realised the passenger was no longer in the vehicle.

The driver did not report the incident to police or anyone else and only later learned that the passenger had fallen from the tuk-tuk, suffered serious injuries and died.

Police have charged the driver with negligence causing death and failing to stop and provide assistance. The suspect confessed to the charges, said Pol Maj Surachart.

Cairney had an undefeated professional record in 10 fights, including six knockouts, since he began competing in February 2023. He won the WBO International Youth Welterweight Title in 2025.

Kynoch Boxing Scotland also posted a tribute on its Facebook page on Wednesday: ‘We are devastated at the news of Colin’s passing at just 22 years of age,’ it said.

‘Colin was one of the stars of our stable. Inside the ring he brought excitement every time. Outside of the ring he was an absolute gentleman who was highly regarded by everyone.’

Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the average load factor for June and July has fallen year-on-year, as travellers are exercising greater caution with their spending in the off-peak season after shelling out for holidays in April and early May.

Even though a brighter outlook is expected if the US and Iran sign a ceasefire on Friday, Mrs Nuntaporn said fuel prices will not immediately return to pre-war levels, unlike crude oil prices, which have fallen to nearly the same level as before the war.

Most airlines have to wait until a deal is signed and transport routes are fully restored before adjusting their plans, such as increasing flight capacity and resuming some suspended routes, she noted.

Thai Lion Air has reduced seat capacity by 15% since the war in the Gulf erupted and needs to assess how lower fuel prices could affect airfares from next month, said Mrs Nuntaporn.

La-iad Bungsrithong, a board advisor for the Thai Hotels Association, said the low season in 2026 is the weakest in years, with the average occupancy rate in Chiang Mai only 40-45%, while some locations are recording rates as low as 35%.

The situation differs from previous years as hotels across all segments, including five-star properties that usually perform strongly, are experiencing a decline in bookings, she noted.

Three- and four-star hotels are hampered by weaker domestic purchasing power in both the leisure and meetings segments, as individuals and companies are prioritising spending on essential needs rather than tourism, said Mrs La-iad.

Luxury hotels are hamstrung by fewer international visitors, particularly from Europe and the US, as soaring jet fuel prices have discouraged demand from those markets.

She said that even though a peace deal is expected on Friday, travellers are likely to adopt a wait-and-see approach until the situation is fully settled.

The first indicator that hotel operators are monitoring is bookings for July and August, which typically increase due to demand from families during school holidays, as well as long-stay guests such as pensioners and digital nomads.

“The cost-of-living relief measures, such as the co-payment scheme, are unable to extend benefits to the tourism sector. They primarily help households absorb essential daily expenses rather than leaving them with additional budgets for travel,” said Mrs La-iad.

As of May 31, the number of domestic trips rose year-on-year by 1.77% to 86.7 million, with Bangkok, Chon Buri and Kanchanaburi seeing most visits.

Authorities have postponed a plan to impose higher electricity rates on large households with heavy consumption, citing the need to revise how power bills are calculated, says Energy Minister Akanat Promphan.

The new electricity prices were proposed by the Energy Regulatory Commission last month and slated for enforcement in July. They are based on progressive power tariff rates, which increase when people use more electricity.

Small households consuming 1-200 units of electricity are charged between 2.34 and 3 baht per unit, while larger households using 201 units or more face a higher rate of 4.96-5.45 baht per unit.

“The new rates are not appropriate,” said Mr Akanat, citing negative reactions from various groups of people following a public hearing last week.

“Big families don’t rack up high electricity bills because they’re wasteful — it’s usually because there are more people living in the house and that naturally drives up power use.”

Officials are required to review the new power tariff rates, he said.

Businesses and households currently pay for electricity at an average rate of 3.95 baht per unit, applicable until August this year.

Mr Akanat said the government will continue subsidising electricity costs for households consuming no more than 200 units. The Electricity Generating Authority of Thailand (Egat) will be asked to subsidise the power prices, he noted.

Egat already registered a loss of 36 billion baht as of April due to its past subsidy programmes.

Energy officials have proposed three ways to reduce power tariff rates for people.

First, the Metropolitan Electricity Authority and the Provincial Electricity Authority need to reduce their spending on street lights, which have been passed onto the public, according to Mr Akanat.

Next, the state electricity agencies must amend conditions for power purchase agreements with renewable power companies, which were given the right to sell electricity to the government at high tariff rates.

This spending, together with expenditure on other energy-related purposes under state policy, comprises 4% of the power tariff paid by people, according to energy officials.

Finally, electricity-hungry data centres must be charged a separate electricity rate and draw on the nation’s surplus power supply, absorbing a portion of the financial burden that would otherwise fall on households.

The government’s 1.6-billion-baht TH-AI Passport project could become a focus of a no-confidence debate, according to the People’s Party, which says other projects overseen by the Bhumjaithai Party have followed a similar pattern.

The opposition alleges irregularities in procurement, pricing and project design, but the Ministry of Digital Economy and Society has insisted the scheme complies with regulations and offers value for money.

Pawoot Pongvitayapanu, a People’s Party list MP with a background in technology and online entrepreneurship, questioned the origins of the project, which aims to expand public access to artificial intelligence tools through funding from the Digital Economy and Society Development Fund.

He said the project’s scale appeared to have been determined by the amount of money remaining in the fund rather than by real public demand.

Mr Pawoot said the government first allocated the entire 1.6-billion-baht budget and then calculated a target of five million users based on estimated annual AI usage costs.

‘The target did not originate from an assessment of what people actually need,’ he said on Wednesday.

The MP also raised concerns over the project’s terms of reference, claiming specifications appeared tailored to benefit certain businesses.

Although the scheme focuses on AI services, he questioned why the terms included requirements related to advertising systems in about 1,500 convenience stores and roughly 6,000 display screens nationwide.

Mr Pawoot said companies involved in setting reference prices and participating in the bidding process had links to the retail advertising sector, raising suspicions that the procurement process may have been designed to favour specific operators.

He said a similar pattern had emerged in projects managed by ministries previously overseen by the Bhumjaithai Party, citing programmes under the Ministry of Higher Education, Science, Research and Innovation and the Ministry of Education.

The lawmaker also criticised the procurement timetable, noting that invitations for bids were announced on Dec 24 during the Christmas and year-end holiday period. He said the process moved unusually quickly, with bidding closing only weeks later.

‘The project was opened and closed in just 34 days,’ he said, suggesting potential bidders would have needed prior knowledge of the project to prepare proposals in time.

Reports have circulated online that SET-listed Plan B Media Plc developed an Android app called AI Passport, which appeared briefly in the Google Play store before being taken down in October last year.

People who had a chance to review the app said its features were very similar to the TH-AI Passport that was first proposed to the economic cabinet on Nov 8.

Plan B subsequently issued a statement clarifying that it is not involved in the government’s project, nor was it a contracting party or participant in the procurement process.

Thailand’s average household income declined in 2025, while lower-income households increasingly relied on financial assistance, according to several research institutions.

The latest study by SCB EIC, a research centre under Siam Commercial Bank, reveals that the average household income in 2025 stood at 28,308 baht per month, a 2.5% decrease from the previous surveyed figure of 29,030 baht in 2023.

This marks the first decline in six years, primarily driven by a 4.8% contraction in earned income, reflecting the fragility of the labour market and the concentration of household income among high-income households amid a slowly recovering economy over the past several years.

The EIC analysis is based on the 2025 Household Socio-Economic Survey conducted by the National Statistical Office (NSO), which covered 57,600 households nationwide.

The study also found that Thai households are relying more heavily on financial assistance, particularly those in lower-income segments.

Financial assistance includes old-age and disability allowances, as well as other forms of aid provided by the government and various organisations. It also covers financial support from individuals outside the household.

‘Household income derived from financial assistance increased by 19.4% in 2025 compared with 2023. Meanwhile, 60% of lower-income households — those earning no more than 15,000 baht per month — relied on financial assistance,’ EIC reported.

At the same time, the debt burden among lower-income households increased by 1.9% in 2025 from 2023. More than 50% of indebted households reported having insufficient income to cover their expenses, while more than two-thirds experienced income shortfalls.

Meanwhile, middle-income households, defined as those earning less than 50,000 baht per month, faced growing financial pressure from both essential living expenses and debt obligations.

As a result, this group is likely to face tighter liquidity and a reduced ability to cope with rising living costs in 2026, with inflation expected to accelerate.

EIC stated that rising household vulnerability could weigh on domestic consumption over the longer term. In the short term, the government’s 400-billion-baht emergency loan decree is expected to help ease pressure on household spending.

Over the longer term, however, the government should focus on improving household income, enhancing labour skills and strengthening household financial resilience, the research institution suggested.

Disproportionate impact

Separately, Bnomics, a digital research platform under Bangkok Bank, reported that uneven labour income growth has disproportionately affected lower-income groups, despite Thailand’s GDP per capita continuing to rise over the past decade.

GDP per capita increased from 221,195 baht in 2016 to 288,315 baht in 2025, representing average annual growth of 3%, compared with average annual GDP growth of 1.1% over the same period.

According to NSO data, the top 10% of income earners accounted for 32% of total labour income in 2023, while the bottom 50% received only 22% combined. Workers in the top 10% earned an average of 36,706 baht per month, compared with 2,635 baht for those in the bottom 10% — a gap of nearly 14 times.

Meanwhile, a Bank of Thailand study found that the ratio of labour income to GDP declined from 49% during 2001-05 to 44% during 2016-23.

The decline was attributed to various factors, including changes in labour productivity, automation, demographic shifts, evolving consumer lifestyles, an ageing society, rising household debt and other structural challenges.

‘Although GDP per capita and overall economic growth have increased, lower-income groups have not experienced a corresponding improvement in their quality of life,’ Bnomics noted.

Thailand holds a strong advantage over Cambodia in the maritime dispute process under the United Nations Convention on the Law of the Sea (Unclos), says Senator Nophadol In-na.

He cited the appointment of two former presidents of the International Tribunal for the Law of the Sea (ITLOS) to assist Thailand’s case.

Speaking at parliament on Wednesday, Mr Nophadol, who chairs the Senate’s Foreign Affairs Advisory Committee, welcomed the cabinet’s decision to appoint Deputy Prime Minister and Foreign Affairs Minister Sihasak Phuangketkeow to lead Thailand’s delegation in the compulsory conciliation process.

He said the delegation possesses extensive diplomatic and legal expertise and is well prepared to work together throughout the proceedings.

The senator also expressed confidence in Thailand’s nomination of South African international law expert Judge Albert Hoffmann and German jurist Judge Rdiger Wolfrum as conciliators, adding both possess the required expertise and experience, having previously served as ITLOS presidents.

One of the judges also took part in the compulsory conciliation case between Timor-Leste and Australia, a landmark maritime dispute in which Timor-Leste ultimately secured a favourable outcome.

He said Timor-Leste’s decision to appoint the judge reflected his outstanding reputation and expertise.

Mr Nophadol said Thailand would not be disadvantaged in the proceedings and could even hold a stronger position. All conciliators involved are highly respected figures with considerable international credibility and can be trusted to adhere strictly to Unclos rules.

Asked about Cambodia’s proposal to discuss benefit-sharing arrangements before maritime boundaries are formally established, he said Thailand would likely oppose the plan because it would be impossible to determine the extent of any overlapping claims without clearly defined boundaries.

Mr Nophadol said the committee would respond promptly to misinformation or false statements from foreign sources that could damage the reputation of Thailand’s legislative bodies, particularly the Senate.

He said the dispute could be resolved through international legal mechanisms, adding the 2001 MoU failed because Cambodia’s claimed boundaries were not established in line with international principles.

Diverse community representatives have expressed their hopes for the incoming Bangkok governor, urging decisive action to address long-standing urban challenges.

Sanga Ruangwattanakul, president of the Khao San Road Business Association, said stricter management of sidewalks was needed. He called for proper regulation of street vendors, particularly in business and tourism districts.

Mr Sanga said the city administration should establish a transparent registration system for vendors and ensure permit holders are the actual operators of stalls.

“Authorities should stop relying on fines that do not solve the problem at its root,” he said. “Street vending spaces in popular tourist areas are highly sought after. They should be reserved for people with low incomes who genuinely need them, not individuals who obtain permits only to sublease them at higher prices.”

He said effective regulation would improve cleanliness in tourist areas and create additional revenue streams for City Hall that could be reinvested in tourism development and public services.

He also highlighted air quality as a pressing concern. He urged the next governor to take stronger action against PM2.5 pollution, saying the capital should be able to achieve cleaner air through strict enforcement of environmental regulations. “If people are encouraged to exercise in parks but still have to breathe polluted air, then those campaigns lose their meaning,” he said.

Environmental advocate Alexander Rendell, also an actor and chief executive of the Environmental Education Centre Thailand, echoed concerns about pollution and waste management, describing them as public health issues rather than merely environmental ones.

“Clean air is a basic right,” he said. “Some people can avoid pollution by staying indoors with air conditioning, but many others have no choice except to spend their days outside. That is why this issue should be among the city’s highest priorities.”

He said Bangkok needs a governor willing to confront difficult problems and focus on improving residents’ quality of life rather than serving political interests.

Looking beyond immediate environmental concerns, he identified three major priorities for the city’s future: corruption, education and environmental sustainability.

Corruption remains a significant obstacle to development, he said, because it undermines public trust and weakens the effectiveness of government projects. Education, meanwhile, forms the foundation for future generations, while greener public spaces and safer outdoor environments would encourage healthier lifestyles and greater community engagement.

Sompong Patpui, secretary-general of the Grassroots Development Foundation and a board member of the Duang Prateep Foundation, said many Bangkok governors have entered office with good intentions but have struggled to deliver results due to weaknesses in the administrative system.

“The governor cannot do everything alone,” he said. “There must be a capable team to follow through on policies and ensure they reach the implementation stage. Otherwise, instructions disappear once they enter the bureaucracy.”

Without effective monitoring and accountability mechanisms, promising policies often fail to produce tangible outcomes, he said. He also highlighted that several of Bangkok’s chronic problems require structural solutions.

Among the most important are city planning, public participation and governance, he said. Urban planning decisions often involve competing interests, making reform difficult. However, poor planning affects everything from transport and housing to environmental management.

At the same time, residents must be given meaningful opportunities to participate in decision-making processes. Governance and transparency are equally important, he added, noting persistent public complaints about procurement practices that lead to expensive yet low-quality projects.

Consumer rights advocate Narumol Mekborisut, deputy director of consumer protection at the Foundation for Consumers, pointed to the growing economic pressures facing Bangkok’s urban poor.

She said many low-income residents, particularly elderly people, have become trapped in informal debt due to rising living costs, including food, transportation and housing expenses.

Ms Narumol also criticised shortcomings in public transport, saying that route reductions and inadequate bus services have increased commuting costs for many residents.

Some are forced to take multiple connections or rely on taxis when seeking medical treatment.

She called on the next governor to work with relevant agencies to improve transport links within neighbourhoods, particularly in smaller roads and residential communities where residents often lack convenient access to public transport.