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HomeWorldAsiaThailand reverses cannabis legalisation, plunging $1bn industry into uncertainty

Thailand reverses cannabis legalisation, plunging $1bn industry into uncertainty

Thailand’s government moved decisively to recriminalise cannabis, issuing an order that prohibits recreational sales and mandates doctor’s prescriptions for all retail purchases, Reuters reported.

The abrupt policy shift, set to take effect imminently upon publication in the Royal Gazette, dismantles a burgeoning industry valued at over $1 billion that flourished after the substance was removed from the narcotics register in 2022.

The reversal follows last week’s withdrawal of the Bhumjaithai Party, which championed the original legalisation, from Prime Minister Paetongtarn Shinawatra’s ruling coalition amid fallout from a border dispute with Cambodia. Health Minister Somsak Thepsuthin confirmed the stringent new stance:

Cannabis will be classified as a narcotic in the future.

The decision throws into jeopardy approximately 18,000 cannabis businesses that have sprung up across Thai tourism hubs, including Bangkok’s Khao San Road where shops like Green House Thailand now face closure. The Thai Chamber of Commerce had projected the sector—spanning medicinal products, agriculture, and tourism—could reach $1.2 billion in value by 2025.

Government spokesman Jirayu Houngsub justified the recriminalisation by citing “serious social problems” arising from unregulated access, particularly among youth.

The policy must return to its original goal of controlling cannabis for medical use only.

Tourism operators fear significant collateral damage. Khao San Road, where cannabis shops generate 20-30 million baht monthly, remains dependent on tourist curiosity about Thailand’s uniquely liberal stance in Asia.

The Health Ministry’s order permits no transition period, leaving operators with investments ranging from 500,000 to 10 million baht facing ruin. With recreational sales now banned and medicinal use requiring prescriptions, Thailand’s cannabis experiment collapses under the weight of political realignment.

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