Thai government turns to legislature for cannabis regulations
The Thai government has recently signaled a U-turn on its plan to relist cannabis as a narcotic. The plant was removed from the narcotics list in 2020, sparking a thriving industry now worth over USD 400 million. Any hasty regulations restricting recreational cannabis use would significantly impact thousands of businesses. Initially, the government appeared poised to unilaterally relist the plant, much like its removal in 2020. However, legal experts noted that the Emergency Decree used to delist cannabis, implemented in response to Covid-19, is no longer in effect. This may have influenced the policy shift, with Deputy Prime Minister Anutin Charnvirakul recently indicating that a legislative solution is now preferred.
Thailand avoids bad optics
This policy U-turn allows for thoughtful lawmaking and rigorous debate while avoiding the negative consequences of unilaterally enacting a policy that could stifle an entire industry. The impact on the business and investment community would be two-fold. Foreign investors might hesitate to start or invest in businesses in Thailand if they see the government can shut down an entire industry unilaterally. On the other hand, small businesses are a significant part of the Thai economy and culture, with Thailand ranking high in Southeast Asia for small businesses per capita at 4.5 SMEs per 100 people.
The importance of small business in Thailand
Small businesses and entrepreneurship are essential to Thailand’s economy. Thousands of Thai entrepreneurs have invested significantly in the cannabis industry, from shop owners to distributors to growers. Enacting policies without their input could stifle the entrepreneurial spirit that drives this sector. The shift to a legislative process for cannabis regulation will provide a platform for these small business owners to have their voices heard. This approach ensures a more democratic process by engaging various stakeholders, including small business owners, legal experts, and the general public. By involving these groups, the government can develop a balanced regulatory framework that supports the growth of the cannabis industry while addressing public health and safety concerns.