Summary
- A national scheme for state-purchased home disaster insurance has been approved in principle. It is not yet operative.
- The Thailand-Singapore partnership statement is a political instrument and alters no legal rule.
- A draft regulation would broaden the permitted uses of forest land and reduce the associated fees.
- A five-year factory-fee waiver for the deep south has been approved in principle, with retroactive effect.
- A national rail-technology strategy has been adopted, favouring local suppliers.
1. State-purchased disaster insurance for residential property
The Cabinet approved in principle a national scheme under which the State would procure natural-catastrophe insurance for residential property against flood, windstorm, and earthquake. The Ministry of the Interior would hold the master policy and fund the premiums, and the Office of Insurance Commission (OIC), together with the Thai General Insurance Association, would administer cover and claims for approximately 30 million households. The proposed terms provide for an initial payment of 10,000 baht per dwelling for flood, or 5,000 baht for windstorm or earthquake, within 15 days of a qualifying event, with further indemnity up to a combined limit of 100,000 baht per dwelling per event, together with a death benefit of 2,000,000 baht.
The scheme remains at the level of principle. No policy has been placed, no insurer appointed, no premium determined, and no commencement date fixed. The cover, as proposed, extends to residential property only and would not respond to commercial risk.
2. Thailand-Singapore Forward-Looking Strategic Partnership
The Cabinet approved the joint statement on the Thailand-Singapore Forward-Looking Strategic Partnership, to be endorsed by the two Prime Ministers on 2 September 2026. The statement identifies priority areas for cooperation, including the digital economy, financial technology, the green economy, defence, public health, food and energy security, and the suppression of online fraud.
The Cabinet's submission confirms that the statement is an expression of political intent. It does not constitute a treaty under international law, nor a treaty requiring parliamentary approval under Section 178 of the Constitution of the Kingdom of Thailand B.E. 2560 (2017), and it imposes no obligation on either State.
3. Expanded use of, and reduced fees for, forest land
The Cabinet approved in principle a draft ministerial regulation, proposed by the Ministry of Natural Resources and Environment, under the Forest Act B.E. 2484 (1941). The draft would replace the corresponding 2558 (2015) regulation and expand the purposes for which permission to use forest land may be granted from ten to sixteen, adding renewable energy, telecommunications, public utilities, and waste management, among others. It would permit applications to be submitted electronically, abolish several categories of fee, and extend the maximum permit term for certain purposes, including petroleum production and long-term residence or agriculture, to thirty years. The regime would apply to private undertakings as well as to State agencies.
The measure has been approved in principle only. It remains subject to legal review and publication in the Royal Gazette before the expanded purposes, longer terms, and revised fees take effect.
4. Five-year waiver of factory fees in the southern border provinces
The Cabinet approved in principle a draft ministerial regulation, proposed by the Ministry of Industry, waiving the fees payable under the Factory Act B.E. 2535 (1992) by category-2 and category-3 factories in Narathiwat, Pattani, and Yala, and in the Songkhla districts of Chana, Thepha, Na Thawi, and Saba Yoi, for a period of five years from 20 June B.E. 2569 (2026). As the preceding waiver expired on 19 June 2569 (2026), the draft is expressed to take effect retroactively, and operators who paid fees in the interim would be entitled to a refund once the regulation is in force. The Ministry estimates that some 683 factories are affected.
The measure has been approved in principle only and has not yet been published, so no refund may presently be claimed.
5. National rail-technology strategy
The Cabinet adopted the National Rail Technology Strategy for B.E. 2571 to 2575 (2028 to 2032), prepared pursuant to Section 7 of the Royal Decree Establishing the Thailand Railway Technology Research and Development Institute (Public Organisation) B.E. 2564 (2021). The strategy is directed at developing a domestic rail industry and reducing reliance on foreign suppliers, through local research and development, testing capability, and technology transfer.
The strategy takes effect as government policy rather than as legislation, and it is not itself a procurement. It nonetheless indicates that future rail tenders and Board of Investment (BOI) incentives are likely to attach increasing weight to local content and technology transfer.
Other matters
The Cabinet also revised its earlier resolutions concerning the 2029 horticultural exposition in Nakhon Ratchasima, relocating the venue to Pak Chong and adopting the official title International Horticultural Expo 2029 Korat Thailand; approved the Songkhla comprehensive city plan governing land use in that municipality; approved an exchange of letters amending the terms of reference for the boundary-fence project at the Ban Dan Nok / Bukit Kayu Hitam crossing with Malaysia; endorsed the Dili Declaration on health workforce at the 79th session of the WHO South-East Asia Regional Committee; and confirmed a number of senior appointments.
How Dej-Udom & Associates can assist
Our Banking and Finance and Corporate teams advise insurers, reinsurers, and investors on the disaster-insurance scheme and on the Thailand-Singapore corridor. Our Corporate and Litigation teams advise energy, infrastructure, and industrial clients on the forest-land regime and related permits. Our Corporate and Tax teams advise manufacturers on the factory-fee waiver and on BOI-linked and rail-sector opportunities. To arrange a consultation, please contact [email protected].
Disclaimer: This publication is intended for general informational purposes only and does not constitute legal advice. The information contained herein should not be relied upon as a substitute for specific legal counsel. For advice tailored to your circumstances, please contact Dej-Udom & Associates directly.