By next month, recreational cannabis will effectively be outlawed, requiring a medical prescription for access. Operators across the industry – from bustling Bangkok shops to tourist hotspot dispensaries – must act now to survive the regulatory earthquake.
As widely reported, the social and health costs of largely unregulated cannabis have become politically untenable. Regardless of your feelings on the accuracy of these statistics, they have been widely quoted in media and social sources.
Assoc Prof Dr Ratsamon Kalayasiri from the Centre for Addiction Studies, citing collaborative studies with Thammasat and Chulalongkorn Universities, revealed staggering costs: B15.82 billion (US$488 million) in 2023 alone for cannabis-related health issues, from acute intoxication to psychosis.
Use among 18- to 19-year-olds skyrocketed from 0.9% in 2019 to 9.7% in 2022, with widespread non-compliance on age verification at dispensaries.
Leaders like Rangsan Chuenprasert of the Wat Amphawa Community report that easy cannabis access has undermined years of anti-drug efforts, acting as a potential gateway and normalising substance use in vulnerable areas.
The Regulatory Vacuum is Closing – Fast
The initial decriminalisation in February 2022 created a wild west scenario. Despite numerous draft laws languishing in parliament (at least six, according to some reports), the Public Health Ministry is taking decisive action now.
As widely reported, Minister of Public Health Somsak Thepsuthin ordered the Department of Thai Traditional and Alternative Medicine (DTAM) to tighten controls within 40 days.
The core change, confirmed by DTAM Director-General Dr Somlerk Jeunsmarn, is that purchasing cannabis will require a doctor’s prescription for specific conditions (e.g., seizures, severe headaches, insomnia). This effectively ends recreational sales.
Prescriptions will be capped at approximately 30 grammes per user per month.
Also, operators must renew licenses every three years, facing stricter Good Agricultural and Collection Practices (GACP) compliance and harsher penalties (suspension/revocation) for violations.
Industry Reaction
Gloria Lai, Regional Director of the International Drug Policy Consortium (IDPC), contends the prescription mandate was rushed in response to high-profile cases of foreigners illegally exporting cannabis.
She warns the policy will devastate the retail sector, “With about 10,000 outlets nationwide, 90% will likely close. Some foreigners might cooperate with the doctor’s note, but Thais will simply go back to growing their own,” she told Thai PBS World.
Prasit Nunual, Secretary General of Thailand’s Cannabis Future Network, notes closures have already begun due to oversupply and falling demand. He casts doubt on the prescription model’s feasibility: “It might be no different from the required letter for a driving licence – causing inconvenience, not genuine health oversight”.
Enforcement Chaos & Political Instability Loom
While Public Health Minister Somsak’s decree, according to some legal experts, does not require parliamentary approval, its implementation faces hurdles.
The ruling Pheu Thai party’s fragile majority, after Bhumjaithai’s withdrawal, risks bureaucratic delays and inconsistent messaging.
As highlighted by some reports, cannabis’s current vague legal status creates enforcement gaps. Local police often deflect responsibility to the under-resourced Food and Drug Administration (FDA), leaving operators in regulatory limbo.
Message to Operators: Prepare for Change or Perish
The era of easy-access cannabis retail is over. With regulations expected imminently:
Audit Compliance now: Scrutinize your GACP status, age verification processes, and record-keeping. DTAM has signalled aggressive enforcement.
Forge Medical Partnerships: Survival hinges on aligning with the medical model. Build relationships with clinics and doctors authorized to prescribe cannabis. Explore B2B models supplying licensed medical providers.
Re-evaluate Inventory & Sales: The shift to prescription-only will drastically reduce the customer base. Prepare for a significant decline in sales of recreational products. Focus on medically-oriented strains and products.
Consider Diversification or Exit: For purely recreational-focused businesses, the model is likely unsustainable. Explore diversification into non-cannabis wellness products or consider an exit strategy.
Stay Informed & Lobby: Monitor the final published regulations closely. Engage with industry associations (although their influence may be limited given the prevailing political direction) to understand the practical implementation.
The International Stigma Lingers
As noted by Watcharapong Poomchuen of the Substance Abuse Academic Foundation, Thailand’s liberal approach drew international criticism and warnings to tourists, damaging its reputation. The reversal is partly an attempt to rebuild this.
Paul is a Partner at Formichella & Sritawat Attorneys At Law ( www.fosrlaw.com ), a Chambers, Asia Business Law, and Legal 500 highly rated law firm. Paul specialises in real estate law, foreign direct investment, bankruptcy, and company rehabilitation. Paul commutes between Bangkok and Phuket, managing the firm’s Phuket office (Cherng Talay).
Paul has previously been the CEO or chairman of publicly listed companies in telecoms, minerals and energy, hospitality, and real estate. Paul has lived and worked in Thailand for over three decades and is a frequent speaker on legal and economic topics relevant to residents of Thailand. You can follow him on LinkedIn- www.linkedin.com/in/paul-crosio