TCMA Champions 3C3P Mechanism for Climate Action

The Thai Cement Manufacturers Association (TCMA) presented its perspectives from the cement industry at the Thailand Climate Action Conference 2025 (TCAC 2025), highlighting that clear policies, laws, funding, and mechanisms aligned with the Paris Agreement-together with ‘systematic action’ under a Public-Private-People Partnership-are vital for achieving sustainable success and tackling the global climate crisis.

Dr Chana Poomee, Chairman of TCMA, shared his insights on the upcoming COP30 negotiations during the conference held under the theme ‘Inspiring Climate Solutions for All’ at the Queen Sirikit National Convention Centre in Bangkok.

Dr Chana emphasised that, from the cement industry’s perspective, urgent action to address climate change is critical. To achieve greenhouse gas reduction targets, it is essential to ‘establish a systematic mechanism,’ ‘be part of the solutions,’ and ‘take meaningful action.’

He added that clear policies, laws, and plans are fundamental to ensuring effective implementation of national strategies. TCMA has prioritised the passage of the Climate Change Act, Thailand’s first law addressing global warming, which establishes a framework for greenhouse gas reduction, climate adaptation, and systematic participation across all sectors-supporting the country’s progression towards its Net Zero goal.

Driving climate action also requires a structured, integrated mechanism linking all sectors through a Public-Private-People Partnership (PPP). This approach fosters collaboration among government, business, and civil society to jointly pursue climate targets.

An exemplary initiative is the SARABURI SANDBOX LOW CARBON CITY, which aims to make Saraburi Province Thailand’s first low-carbon city, with a particular focus on transitioning the cement industry to Net Zero by 2050. The SARABURI SANDBOX is also the first industrial cluster in Thailand to join the World Economic Forum’s Transitioning Industrial Clusters programme, promoting economic growth, job creation, and carbon reduction through synergistic collaboration.

Dr Chana stressed that climate action cannot be achieved by one sector alone. ‘Collaboration benefits industry, communities, and the nation alike,’ he said. This principle underpins TCMA’s ‘3Cs’ framework: Collaborative Mindset to foster shared understanding and cooperation; Collaborative Action to turn commitments into tangible results; and Collaborative Value to ensure measurable social and environmental benefits.

He also noted that bilateral and multilateral international cooperation would enable access to green finance-an essential component for advancing Thailand’s green economy, reducing emissions, and strengthening competitiveness through investment in low-carbon infrastructure.

In recent years, TCMA has secured funding support from Environment and Climate Change Canada (ECCC) in partnership with the United Nations Industrial Development Organization (UNIDO). This collaboration allows Thailand’s cement industry to adopt advanced technologies and innovations, such as Carbon Capture, Utilisation, and Storage (CCUS), and promotes knowledge exchange with leading global organisations including the Global Cement and Concrete Association (GCCA).

‘Saraburi Sandbox is a field-based pilot project and a model of integrated collaboration between government, industry, and civil society. At the same time, we are strengthening cooperation with international networks, both bilateral and multilateral, to ensure that Thailand’s progress is recognised globally,’ Dr Chana said.

He concluded by expressing confidence that Thailand would leverage COP30 in Brazil this November to enhance its greenhouse gas reduction commitments and accelerate climate-related legislation. ‘This is a key opportunity to build international cooperation and secure financial resources to support Thailand’s emission reduction goals. TCMA stands ready to support these efforts,’ he affirmed.

Will MoU referendum open Pandora’s Box?

The long-standing border dispute between Thailand and Cambodia has resurfaced in public debate following Prime Minister Anutin Charnvirakul’s announcement that his government plans to hold a national referendum, likely alongside the next election, to ask voters whether Thailand should revoke or retain two key bilateral agreements — MoU 43 (on land boundaries) and MOU 44 (on overlapping maritime zones).

The move revives one of the most sensitive issues in Thai national security policy — how to manage complex, overlapping territorial claims with Cambodia that have periodically triggered military clashes and fueled nationalist tensions for more than two decades.

What is MOU 43?

MoU 43 — officially the Memorandum of Understanding between Thailand and Cambodia on the Survey and Demarcation of [the] Land Boundary — was signed on June 14, 2000, during the government of then-prime minister Chuan Leekpai.

Its purpose was not to redefine borders but to establish a framework and mechanism for jointly surveying and demarcating the land boundary, which stretches nearly 800 kilometres — a process which remains unfinished to this day.

Background

After Cambodia’s internal conflict ended in the mid-1990s, Bangkok and Phnom Penh resumed talks to clarify poorly defined border segments rooted in colonial-era treaties between Siam and France, which then ruled Indochina. The treaties of 1904 and 1907, along with their associated maps, left ambiguous demarcations — particularly around the Preah Vihear Temple and adjoining highlands — creating “overlapping areas”.

Why it was needed

Before MoU 43, the two countries faced recurring disputes over several unresolved issues. Chief among them was the interpretation of Franco-Siamese treaties and maps, particularly the Dangrek map, which Thailand never formally endorsed and claims was inaccurately drawn, placing Preah Vihear on the Cambodian side.

Tensions were also rooted in the 1962 International Court of Justice ruling, which awarded the temple itself to Cambodia but left the surrounding land undefined, creating a 4.6-square-kilometre overlapping zone. In addition, large sections of the 800-kilometre border remained undemarcated after the Cold War, while villagers, loggers, and military patrols frequently clashed along disputed stretches, sometimes escalating into armed skirmishes.

Key provisions of MOU 43

Under MoU 43, both sides agreed not to unilaterally alter the border landscape, such as by constructing buildings or digging trenches. The agreement also established a Joint Boundary Commission (JBC) to conduct surveys, install boundary markers, and resolve disputes through dialogue.

What is MOU 44?

MoU 44 — the Memorandum of Understanding between the Government of the Kingdom of Thailand and the Government of the Kingdom of Cambodia Concerning the Area of Their Overlapping Maritime Claims to the Continental Shelf — was signed on June 18, 2001, under the government of Thaksin Shinawatra.

It addresses the Overlapping Claims Area (OCA) in the Gulf of Thailand, covering about 26,000 square kilometres, where both countries have laid claim to the continental shelf since the 1970s.

Why it was signed

Both nations declared their respective continental shelves in 1972-1973, but the boundaries overlapped significantly. The area was later found to contain abundant petroleum and natural gas reserves, making cooperation not only economically desirable but also politically sensitive.

Core principles

MoU 44 established two main frameworks. First, both countries agreed to negotiate an arrangement for joint petroleum exploration and production within a designated Joint Development Area (JDA), with the aim of sharing economic benefits from natural resources. Second, the two sides committed to continuing talks to establish a permanent maritime boundary. The Overlapping Claims Area (OCA) in the Gulf of Thailand, jointly claimed by Thailand and Cambodia, spans approximately 26,000 square kilometres.

Most crucially, Article 5 of the MoU stipulates that until delimitation is completed, neither party’s signature affects its legal claim — meaning no sovereignty was surrendered by either side. In essence, MoU 44 created a framework for future negotiation, rather than a binding concession of territory or rights.

Calls to cancel MOU 43-44

The movement to revoke both MoUs resurged after deadly clashes along the Thai-Cambodian border on July 24, 2025, which left soldiers and civilians dead on both sides, particularly near Ta Muen Thom Temple and Chong Arn Ma Pass. Although a ceasefire was reached on July 28, the political fallout remains intense.

Conservative factions — including senators, members of the Palang Pracharath Party and the Bhumjaithai Party (then in opposition) — together with nationalist groups led by Sondhi Limthongkul, accused the previous Pheu Thai government under Paetongtarn Shinawatra of jeopardising national interests.

They alleged that Thaksin Shinawatra’s close ties with former Cambodian leader Hun Sen had influenced bilateral talks, prioritising personal or business interests over national sovereignty, particularly in relation to the maritime energy resources covered under MoU 44. Opponents further claim the Thaksin and Hun Sen families could benefit from joint petroleum ventures in the overlapping maritime zone, potentially at Thailand’s expense.

Critics also argue that MoU 43 has failed to prevent repeated incursions by Cambodian troops and civilians, despite hundreds of alleged violations, including the construction of structures, trench-digging, and land-use changes in disputed areas.

According to the Royal Thai Armed Forces, there have been 400-500 similar instances of illegal crossings by both the military and civilians from the other nation since 2000.

Meanwhile Cambodian authorities have countered with accusations of more than 695 similar Thai breaches in the opposite direction– underscoring the deep mutual distrust.

The map controversy

A technical but crucial issue lies in the choice of maps used for border demarcation. Cambodia favours the 1:200,000 scale French colonial map (1905-1908), arguing that it carries historical legitimacy. Thailand, however, insists on the 1:50,000 scale map, which more accurately reflects natural watershed lines and provides greater topographical precision. Thai experts argue that reliance on the French map would reduce Thai territory, particularly around the Dangrek Mountains and the Preah Vihear area.

The current situation

While nationalist rhetoric is on the rise, many experts caution against any unilateral withdrawal from MoUs 43 and 44. Scholars and diplomats warn that revoking either agreement without Cambodia’s consent and without an alternative legal framework could leave Thailand without a dispute-management mechanism, heightening the risk of renewed clashes.

Such a move could also be viewed internationally as a treaty violation, undermining Thailand’s credibility, and might even expose the country to another case at the International Court of Justice (ICJ), with Cambodia potentially reviving unresolved complaints — much like the 1962 Preah Vihear ruling, in which Thailand lost.

Parliament and Senate have established special committees to examine the advantages and drawbacks of termination, though their findings are still pending.

The referendum debate

Mr Anutin’s proposed referendum has sparked sharply divided opinions.

Supporters view it as a democratic solution that gives citizens a direct voice on sovereignty issues. Opponents counter that border and maritime treaties are highly technical matters requiring expert negotiation and legal precision, not populist voting.

Critics have also accused the ruling Bhumjaithai Party of using the referendum as a nationalist campaign tool ahead of the next election — a strategy to project patriotism and consolidate its political base among conservative voters.

What lies ahead?

If the referendum proceeds, it could reshape both Thailand’s regional diplomacy and its domestic politics. Revoking the agreements could reignite tensions with Cambodia and complicate Asean cooperation, while retaining them might anger nationalist voters but preserve stability and international credibility.

Either way, the fate of MoUs 43 and 44 highlights Thailand’s enduring dilemma: how to balance national pride, regional peace, and pragmatic diplomacy in one of Southeast Asia’s most sensitive border disputes.

Depa eagerly awaits Game Industry Act

The Game Industry Act is expected to be passed into law by the House of Representatives during the new government’s tenure.

Three Asian countries have a game industry law: Japan, South Korea and China.

Nuttapon Nimmanphatcharin, president and chief executive of Digital Economy Promotion Agency (depa), said the agency is hopeful the government can pass the law as new Digital Economy and Society (DES) Minister Chaichanok Chidchob has been eager to promote the e-sport sector.

The bill passed a public hearing and was approved by a revolving fund committee of the Comptroller-General’s Department.

The National Broadcasting and Telecommunications Commission also earmarked a budget to support industry development under the law.

Mr Nuttapon said depa made an informal presentation on updated information related to the bill to the DES minister.

The DES Ministry assigned depa to draft the bill, which covers all dimensions of digital game businesses and services.

Some public and non-profit organisations are concerned that online games may promote gambling. They are calling for definitions and supervision of the game industry, with clear regulations and a registration system that balance monitoring and promoting the gaming ecosystem.

Gaming rules are not limited to internet cafes, also covering online and mobile platforms.

The bill aims to deal with the sophisticated development of the game sector, which is valued at 30-40 billion baht per year.

The law also seeks to promote Thailand as a regional gaming hub.

The bill regulates the registration of all types of games, particularly those with gambling features, such as lucky draw games, or games with points-based reward systems.

Government agencies have been unable to effectively supervise these games due to the lack of a clear legal framework.

Once the law comes into force, cyber police can immediately block unregistered games and verify which games meet international standards and which pose a potential risk of fraud.

“The law is not a barrier, but rather a mechanism to regulate the gaming market to ensure fairness and facilitate free and responsible market competition,” said Mr Nuttapon.

He said the law should also promote the Thai gaming industry to be more competitive globally.

THREE NEW COMMITTEES

The act comprises five elements: improving game definitions, establishing related committees, game registration, supervision, and an industry promotion fund.

Mr Nuttapon said three committees will be established after the law comes into force, for registration, supervision headed by cyber and provincial police, and industry promotion.

He said each committee will have distinct roles to prevent overlapping duties.

In related news, Thailand is preparing to host the Gamescom Asia event for the first time.

The event is scheduled for Oct 16-19 in Bangkok, organised by depa and several partners.

The previous four editions of the event were held in Singapore.

Mr Nuttapon said Gamescom is a global forum for the gaming business and an important opportunity to demonstrate Thailand’s position as a leader in the gaming industry in Asia.

He said if the game industry law is enacted soon, it will build confidence among investors worldwide and enhance the image of the Thai gaming industry on the international stage.

Waitlist Warriors

On an otherwise unremarkable Wednesday evening, your phone buzzes with the news: your table at Saeng Tha Thien has been confirmed. After three months of refreshing booking systems and nudging contacts, you’re in. Relief quickly gives way to planning: the Instagram post. You picture the shot – strawberry and shrimp paste salad, a discreet glimpse of the few-table dining room, and Wat Arun glowing across the river. You might tag the restaurant in the corner of your story; you might not. Either way, the message is the same: you made it.

For the uninitiated, Saeng Tha Thien is a riverside restaurant near the Thai Grand Palace that reinterprets Thai recipes with contemporary flair. With just a handful of tables, it has become as renowned for its scarcity as for its cooking. It is not alone. Mahasan, a beef specialist in Sathorn, and Canteen19, a Charoenkrung darling serving playful ‘Thaitalian’ plates, are equally difficult to access. Their waitlists stretch weeks, sometimes months, and the race for a table has become part of their allure.

Cross BKK has taken the concept to the extreme: its one-year waitlist turns dinner into something closer to a concert ticket than a meal. Internationally, the phenomenon is familiar. In New York, Carbone’s red-sauce swagger has diners refreshing Resy daily. In Tokyo, Den’s seasonal menus are booked out long before the leaves turn. Bangkok has simply adopted the same playbook – and, characteristically, put its own theatrical spin on it.

What unites these restaurants is the idea that access itself is the commodity. A location tag on Instagram has become a badge of entry into a rarified club. A friend who finally secured Mahasan after weeks of trying admitted, half-sheepishly: ‘The beef was extraordinary. But honestly, it was telling people I got in that felt just as satisfying.’ In a city where social media is stitched into daily life, the dining table doubles as a stage, and the Instagram Stories that vanish in 24 hours often matter as much as the meal itself.

There is, of course, a paradox here. Months of anticipation collapse into a two-hour dinner, and the digital proof disappears by morning. The scarcity fuels desire, yet the payoff is fleeting. The prestige is not in the flavour that lingers, but in the fact that others know you tasted it at all.

For Bangkok, this shift says something larger. Dining has always been a social activity, but in the era of the waitlist, it has become an explicitly performative one. Restaurants are no longer just places to eat; they are cultural events, rationed to heighten demand. That leaves us with a question: when access, rather than appetite, becomes the measure of value, what does that mean for the future of dining?

The food may still be excellent – in many cases, superb. But as the reservation list grows longer, so too does the distance between dining as pleasure and dining as proof. In Bangkok today, the reservation is the main course, and the good life is defined by whether your name is on it.

B.Grimm, Siam Piwat Partner for Clean Energy Future

A landmark collaboration between B.Grimm and Siam Piwat Group is set to redefine sustainable development in Thailand through a multi-dimensional strategic partnership spanning renewable energy, digital innovation, biodiversity, holistic wellness, and cultural promotion.

The partnership was formalised through a memorandum of understanding (MOU) between B.Grimm – Thailand’s oldest established company with a 147-year legacy in nation building – and Siam Piwat Group, the visionary retail and real estate developer behind world-renowned destinations such as Siam Paragon, Siam Center, Siam Discovery, and ICONSIAM.

Central to this collaboration is the installation of a solar rooftop at Siam Paragon, alongside initiatives in energy efficiency, biodiversity conservation, knowledge exchange, and arts and culture. Together, both organisations aim to pioneer a model for sustainable business that harmonises innovation, environmental responsibility, and community well-being.

Clean Energy for a Sustainable Future

Under the agreement, Siam Paragon has signed a Power Purchase Agreement (PPA) with B.Grimm Power Smart Solution Co., Ltd., a subsidiary of B.Grimm Power Public Company Limited, to develop the solar rooftop project on the shopping centre’s building.

Covering more than 4,600 square metres with an installed capacity of 793 kilowatt-peak (kWp), the system is expected to reduce greenhouse gas emissions by approximately 532 tons annually. The electricity generated will power Paragon Hall, a world-class convention and exhibition centre, as well as a new zone within Siam Paragon scheduled to open in late 2025 – set to become a sustainability showcase and landmark in the heart of Bangkok.

Building on the success of the solar rooftop at ICONSIAM, the project will further increase the share of clean energy used across Siam Piwat’s portfolio, in line with its target of achieving 100% renewable energy across all shopping centres by 2030.

Shared Vision for Sustainability

Dr Harald Link, Chairman of B.Grimm, noted that the partnership reflects both companies’ long-standing commitment to driving Thailand’s progress in healthcare, infrastructure, and energy innovation.

‘With its heritage of doing business with compassion in harmony with nature, B.Grimm is dedicated to supporting sustainable development and future innovations that meet the needs of society in the digital age,’ said Dr Link. ‘We are delighted to collaborate with Siam Piwat, whose world-class properties bring happiness and meaningful experiences to millions of visitors every year.’

Beyond renewable energy, the partnership extends into biodiversity conservation, knowledge exchange inspired by Bhutan’s Gross National Happiness (GNH) concept, holistic healthcare, and promotion of classical music education through the Royal Bangkok Symphony Orchestra (RBSO) – Southeast Asia’s premier orchestra supported by B.Grimm.

Leading Thailand’s Transition to Net Zero

Chadatip Chutrakul, Chief Executive Officer of Siam Piwat Group, said the collaboration represents a new benchmark for sustainable destinations in Thailand.

‘This partnership with B.Grimm marks another significant milestone for Siam Piwat as we continue to integrate innovation and clean energy management to enhance efficiency and sustainability,’ said Ms Chadatip. ‘We have set an ambitious goal to achieve net-zero Scope 1 and 2 greenhouse gas emissions by 2050. This alliance underscores a shared vision to establish a truly ESG-driven business ecosystem that aligns with international sustainability standards.’

Siam Piwat’s sustainability strategy is embedded across all its destinations – Siam Paragon, Siam Center, Siam Discovery, ICONSIAM, ICS, and Siam Premium Outlets Bangkok – which are not only global lifestyle hubs but also platforms for social connection and environmental responsibility. The company’s ‘Creating Shared Value’ approach ensures that its success translates into long-term benefits for communities, the environment, and the nation.

In uniting innovation with compassion, B.Grimm and Siam Piwat are charting a clean-energy future that strengthens Thailand’s position as a regional model for sustainable progress.

PM to lead disaster relief committee meet

Prime Minister Anutin Charnvirakul is set to preside over the inaugural meeting of the National Disaster Management and Relief Committee (NDMRC) on Monday, as floods continue to threaten many parts of the country.

The committee, which was formed last Tuesday, along with the National Disaster Relief Operations Centre (NDROC), has the job of coordinating, supervising, and integrating disaster relief efforts nationwide.

The move followed Mr Anutin’s visit to flood-hit Bang Ban district in Ayutthaya on Sept 27, where he observed recurring flood problems and inadequate relief efforts.

Following the visit, he ordered the creation of a central mechanism to deliver more effective assistance to citizens affected by floods.

The NDMRC, chaired by Mr Anutin himself, will oversee all phases of disaster management from preparedness, prevention to emergency response and post-crisis rehabilitation.

It also has the authority to direct government agencies, state enterprises, and other organisations in disaster relief operations, and appoint special working groups or experts as needed.

Meanwhile, the NDROC, led by Deputy Prime Minister Sophon Zarum, will serve as the main command and coordination centre for relief operations, covering evacuations, safety measures, essential supplies, and temporary shelters.

The DDPM on Sunday issued a warning about flash floods in several central and northeastern provinces, including Phitsanulok, Ubon Ratchathani, and Ayutthaya, as well as coastal flooding from high tides in 23 coastal provinces, including Bangkok.

The Thai Meteorological Department (TMD), meanwhile, said Typhoon Matmo was gaining strength over the upper South China Sea. The typhoon was expected to make landfall in China’s Guangdong province on Sunday.

While the storm will not enter Thailand, it is strengthening the southwest monsoon, bringing heavier rain and flash flood risks to the North, Northeast, East and South until Tuesday.

Residents in at-risk areas are urged to be on alert for floods.

Transfer for ‘assault’ teacher

An assistant teacher accused of assaulting a first-grade student with a metal ruler will be reassigned to an inactive post while the investigation continues, authorities said on Sunday.

The transfer was ordered by the director of Lampang Primary Educational Service Area Office 1, following outrage over the incident which left the child with bruises on his face and neck.

Deputy director of Lampang Primary Educational Service Area Office 1, Thanayut Kamphira, along with the principal of Ban Mae Chang School, and social welfare and child protection officials, visited the home of the victim in Mae Mo district to extend their support and gather information about the incident.

The boy, identified as Pot, 7, was struck in the face by the 23-year-old assistant teacher for taking his snacks without permission.

Mr Thanayut said the teacher will be reassigned to Lampang Primary Educational Service Area Office 1, effective on Oct 6. A committee will determine if the teacher’s actions warrant serious administrative sanctions, he added.

“We will be fair to all parties,” he said, acknowledging the emotional toll on the child’s family and pledging stricter oversight to prevent future incidents.

Regarding the assistant teacher’s licence, Mr Thanayut said the matter falls under the Teachers’ Council of Thailand (TCT).

Amonwan Weerathammo, secretary- general of the TCT, said Education Minister Narumon Pinyosinwat expressed concern and instructed the council to act swiftly.

“Violence in schools is unacceptable. Teachers are meant to nurture, not harm,” Ms Narumon said.

The assistant teacher holds a provisional teaching licence issued in May 2023, which is valid until May 2028. The case has been submitted to the Professional Standards Committee for review under the 2025 Code of Ethics.

Ms Amonwan added the committee may suspend the licence pending the results of the investigation. If the school’s administration recommends dismissal, it can proceed without awaiting the committee’s final decision which will follow in due course.

Co-payment, welfare card schemes backed to lift GDP

The Finance Ministry expects the “Khon La Khrueng” co-payment scheme and increased allowances under the state welfare card programme to lift private consumption by 0.87 percentage points.

According to a ministry source who requested anonymity, additional allowances under the state welfare card scheme are estimated to add 0.35 percentage points to private consumption, while the co-payment scheme will contribute 0.52 percentage points.

Combined, these two measures are projected to lift GDP by around 0.3 percentage points, said the source.

The funds are expected to primarily flow into the grassroots economy, directly benefiting retail (especially small shops), food and beverage, and personal services, which cover a wide range of small and medium-sized enterprises.

In addition, the two schemes are expected to increase value-added tax (VAT) collection by the Revenue Department by around 6 billion baht, assuming private consumption of 10 trillion baht and a VAT rate of 7%.

According to the Fiscal Policy Office’s forecast at the end of July, private consumption is expected to grow by 3.1% per year, within a range of 2.6% to 3.6%.

Roughly 33 million people are expected to benefit under the co-payment scheme and uptick in state welfare card allowances:

1. State welfare cardholders: 13 million people are scheduled to receive a top-up of 1,700 baht each. Combined with the existing monthly 300 baht allowance, this totals 2,000 baht per person. The money can be spent at “Blue Flag” shops under the Commerce Ministry, either gradually or in a lump sum, but must be used by December.

2. People outside the tax system: 9 million people are slated to receive a quota of 2,000 baht each under the co-payment scheme, with the government subsidising 50% of spending, capped at 200 baht per day. Funds must be used by December.

3. Taxpayers: 11 million people are expected to receive a spending quota of 2,400 baht each under the co-payment scheme, with the government covering 50% of spending, capped at 200 baht per day. Funds must be used by December.

The combined budget for the Khon La Khrueng scheme and the state welfare card top-up amounts to 66 billion baht.

The cabinet approved the state welfare card top-up project on Sept 30.

The Finance Ministry said the co-payment scheme will be submitted to the cabinet on Tuesday, with public registration open from Oct 20-26.

Individuals should be able to start using the scheme on Oct 29, noted the ministry.

Shops wishing to participate can register from Oct 15 until the end of the project in December.

Local AI growth threatened as a result of skills shortages

Though Thailand has a high adoption rate for artificial intelligence (AI), the country’s global competitiveness and economic growth are threatened because 47% of businesses cite a lack of digital skills as the main barrier to expanding AI use, according to Amazon Web Services (AWS) research.

More than 600,000 businesses in Thailand report use of AI, yet only 16% of AI-adopting large enterprises are harnessing the technology to innovate new AI-driven products or services, compared with 40% of AI-adopting startups, reflecting a “two-tier AI economy”, noted the research.

The report “Unlocking Thailand’s AI Potential” was conducted in collaboration with Strand Partners, using an AI adoption survey in Thailand with participation from 1,000 business leaders and 1,000 nationally representative members.

Recent research by the Telecoms Advisory Service, commissioned by AWS, found cloud and AI added more than US$3.3 billion to Thailand’s GDP in 2023.

Cloud services are set to add $2.8 trillion to Asia-Pacific regional GDP by 2030, with nearly $203 billion alone coming from cloud-enabled AI, according to the research.

“AI adoption is gaining momentum. In Thailand, 150,000 businesses adopted AI solutions in 2024 — nearly one every three minutes,” said Nick Bonstow, director of Strand Partners.

“Now a total of 600,000, or 32% of Thailand’s businesses, have already adopted AI, a year-on-year growth rate of 33%.”

A total of 67% of Thai businesses that adopted AI reported an increase in revenue, with an average uplift of 17%, while 78% expect an average of 17% in cost savings, according to the report.

The top three sectors adopting AI are manufacturing, IT and technology, and financial services.

Some 32% of businesses in Thailand now use at least one AI tool, rising from 24% last year.

However, 72% of respondents remain focused primarily on basic use cases, rather than innovation such as developing new products or disrupting industries.

“This underscores the need to deepen AI adoption to unlock Thailand’s full AI potential,” Mr Bonstow said.

Only 18% of Thailand’s businesses have advanced to the intermediate stage of AI adoption, while 10% reached the most transformative stage of AI integration, compared with 9% of companies in Vietnam and 8% in the Philippines, he said.

Two-tier economy

Half of startups in Thailand use AI in some way, of which 40% are building entirely new AI-driven products.

The study found 73% of businesses overall and 84% of startups believe AI will transform their industry in five years, making Thai startups key to innovation and competitiveness on the continent, noted AWS.

While 44% of large enterprises are using AI, only 16% of these are delivering a new AI-driven product or service, and only 18% have a comprehensive AI strategy.

Similarly, 32% of small and medium-sized enterprises have adopted AI, but only 9% are leveraging AI for its most advanced uses.

“Our report warns of a two-tier AI economy, where startups are racing ahead and other businesses are left behind, said Mr Bonstow.

AI Skills Gap

A lack of skilled personnel is the leading reason that 47% of businesses in Thailand say is preventing them from adopting or expanding their use of AI.

This puts Thailand’s global competitiveness at risk and restricts economic potential, as AI literacy is expected to be required in 61% of jobs in the future, and only 29% of businesses feel prepared with their current workforce’s skillset.

Only 34% of employees received any digital skills training in the past year, noted the report.

Businesses are struggling to hire workers with the right skills and would be willing to increase salary offers by an average of 36% for a candidate with strong AI skills, according to respondents.

Firms spend 27% of their technology budgets on legal and compliance expenses, with 76% expecting these costs to rise over three years.

Vatsun Thirapatarapong, country manager of AWS Thailand, said to maintain Thailand’s competitive edge on the global AI stage, a clear “AI First” policy is needed to drive adoption.

He said this involves reimagining and automating government workflows, potentially requiring legal changes to enable fully online services.

People’s Party MP faces B100m defamation lawsuit

A lawyer representing foreign businessman Benjamin Mauerberger, also known as Ben Smith, has filed a 100-million-baht defamation lawsuit against People’s Party (PP) MP Rangsiman Rome.

Thanadon Suwannarit, a legal adviser to the Agriculture Minister, Capt Thamanat Prompow, and also acting on behalf of Mr Mauerberger, filed the lawsuit.

The case stems from Mr Rangsiman’s speech in parliament on Sept 30, in which he alleged that Mr Mauerberger was linked to scam gangs and call-centre operations.

Mr Thanadon said the Criminal Court had accepted the case, with a hearing scheduled for Nov 24.

Responding to questions about the connection between Capt Thammanat and Mr Mauerberger, the lawyer explained the two knew each other via former prime minister Thaksin Shinawatra and that Mr Mauerberger had investments in Dubai.

Mr Mauerberger has conducted businesses in Thailand and Singapore, in real estate, yacht and aircraft trading, said Mr Thanadon. After Mr Rangsiman made the claims, Mr Mauerberger’s companies in Singapore were scrutinised, but no irregularities were found, he said.

Mr Thanadon said that Mr Mauerberger had previously been mistaken for another individual who faced prosecution by the Securities and Exchange Commission (SEC) in 2021, but stressed they were not the same person.

He said Mr Mauerberger’s role as an adviser to Cambodia’s former prime minister Hun Sen was purely consultative, with no salary or official position attached. The invitation was only for an investment discussion.

‘I only carry out my duty as assigned by Capt Thamanat. If Mr Mauerberger’s guilt is proven, I will definitely withdraw myself from the case,’ he said.

‘The lawsuit is not intended to intimidate or silence Mr Rangsiman, but to prove whether the information obtained from investigative journalist Tom Wright is true,’ he said.

Mr Thanadon said in this case, Mr Rangsiman would not receive legal amnesty for informing parliament of that information, because the information was not heard in a confidential session.

Meanwhile, Mr Rangsiman insisted Mr Mauerberger is the same individual who was prosecuted by the SEC based on facts raised in the meeting of the House Committee on National Security, Border Affairs, National Strategy and Reform.

He warned that Capt Thamanat may not understand his role in the cabinet.

He argued that rather than threatening with legal action, Capt Thamanat, in his role as deputy prime minister, should focus on cracking down on scam networks.