Thailand to re-criminalise Cannabis, threatening $1bn industry

Thailand is set to roll back its permissive approach to cannabis, only three years after becoming the first Asian nation to decriminalise the drug. Late Tuesday, the Ministry of Public Health issued an order confining cannabis use strictly to medicinal purposes, citing growing concerns about adverse social effects on young people. 

Government spokesperson Jirayu Houngsub said the boom in recreational consumption had drifted far from the original intention of providing medical access and now “must return to its original goal.”

The directive has rattled Thailand’s fledgling cannabis market—valued by the Thai Chamber of Commerce at up to US $1.2 billion by 2025—though it is not yet law. It must first appear in the Royal Gazette before taking effect, and officials have given no timeline for that publication. 

Since 2022, thousands of dispensaries have sprung up nationwide, drawing tourists even as conservative voices at home pushed back against widespread recreational use.

The policy shift unfolds against a backdrop of political turbulence. The Bhumjaithai Party—once a vocal advocate for full decriminalisation—quit the governing coalition last week after clashes over the administration’s handling of a border dispute with Cambodia. 

That departure further clouds the outlook for an industry that has never enjoyed stable regulation, and entrepreneurs now face renewed uncertainty over whether Thailand’s cannabis boom can survive in its present form.