For decades, cannabis and related products had been legally banned throughout Southeastern Asia, including Thailand. Even CBD oil, a non-psychoactive and virtually harmless cannabis product was illegal.

However, new legislation published in February made cannabis for medical purposes legal in Thailand. With Thailand leading the way, it’s believed that many other Southeastern Asian countries will also move to legalize the medical wonder that’s associated with health benefits like treatment of anxiety, pain, epilepsy, and more.

Thailand’s legislatures are still somewhat concerned regarding the growth of the cannabis plant. The leader of Thailand’s Bhumjaithai party, Anutin Charnvirakul, has openly spoken up about his approval of marijuana, stating that it has profound medical properties.

“Unlike alcohol and cigarettes, marijuana has great health benefits such as treating cancer, Alzheimer’s, and insomnia,” he stated in a press conference. The best CBD oils and products also offer the same benefits.

Following this conference, medical marijuana was approved for use with a prescription-only, much to the excitement of many Thailand residents and tourists alike. It could be that Thailand’s forward-thinking legislation could create a domino effect in the region for countries legalizing cannabis. Let’s look at how quickly this momentum is growing and where it’s going.

Political leaders are in favour of widespread medical cannabis

Statements from the Bhumjaithai party have swayed public opinion regarding the use of medical marijuana. One advisor stated:

“It should be the job of any government to alleviate the pain of the people and marijuana does both because it helps medically and economically. [We] want medical marijuana to be available to all and not just those who can afford it. [We] also want the business opportunities available to all and not just Big Pharma.”

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In order to make this possible, Anutin’s group has proposed a plan in which each household will be allowed to grow up to six cannabis plants in their own backyards. Each plant would generate thousands of dollars in revenue, and the state would buy all the crops, helping pull impoverished Thailand communities out of the gutter.

This proposed legislation may take time to pass, considering the potential for black-market selling, but it shows major progress for the Southeastern Asia region. The encouragement from local leaders has spearheaded the momentum. Now that the people understand it’s okay to seek medical cannabis for their health needs, they’re much more likely to do so, increasing the demand.

Medical cannabis has rapidly been accepted

It didn’t take long for citizens in Thailand to accept the use of medical marijuana following the unveiling of the first legal cannabis greenhouse back in February. The media has published plenty of information on the healthcare applications, benefits, and economic implications of the drug, and everyday citizens seem to be on board.

“The attitude is that it’s already a part of traditional medicine … and we should ensure that Thais can control their own industry,” said Jim Plamondon, marketing head of Thai Cannabis Corporation.

Thailand is perhaps the most influential of the Southeastern Asia countries to legalize medical marijuana, but it’s not the first. South Korea also surprised the world by becoming the first East Asian country to legalize the drug in November of 2018.

Malaysia, Japan, and several other East Asian countries have also changed their legislation to become open to decriminalizing medical marijuana. The rapid success and acceptance of the drug across the region have been astounding.

Medical Cannabis is great for tourism

The economic impact of medical cannabis is most profoundly seen in tourism. Thailand and other Southeastern Asian countries attract millions of travellers every year that are seeking medical treatment unique to the region. Now, with the possibility of receiving medical cannabis, it will attract more Asian and European visitors in need of medical services.

The economic implications could lead to trillions of dollars in revenue for the nation. There are risks of Big Pharma companies gaining monopolies and stealing all the economic benefits of increased tourism. It will be up to legislators in the country to prevent this.

Medical cannabis will be a $5.8 billion market in Asia

It’s predicted that by the year 2024, Asia will be one of the largest contributors to the worldwide medical cannabis market with a potential U.S.$5.8 billion in revenue. In order to achieve this number, legalization will be required across the region, not including China.

If China entered the market, the financial implications for the cannabis economy would go through the roof. However, it’s not likely that China will give up its strict legislation within this next decade.

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Japan is likely to contribute to the growing cannabis market, although they still maintain strict rules regarding medical marijuana use. They’re becoming more open to the prospect of allowing it and are currently running tests on the widely accepted CBD-based drug Epidolex, which could open doors to widespread cannabis use in the region. Their contribution will help to maximize the market.

Investors scramble to get in on the market

Not only is the expected growth impressive, but the region is also in the beginning stages of legalizing cannabis, so the potential for massive returns is clearly present.

Chinese and Japanese investors are likely to be among the biggest players in the investment scene throughout Southeast Asia. Even though cannabis use is still illegal throughout these two countries, investors aren’t blind to the potential implications of entering the market early.

Although investment prospects are ripe for the picking, investors are warned to avoid being too optimistic for a rapid return on investment. It may be years, even decades before recreational cannabis use is legalized in the nation.

Still, progress is moving forward. Southeast Asian countries like Thailand are just the beginning of Asia’s interest in the cannabis market. With acceptance, research, and the right economic factors, it’s only a matter of time before the entire continent is invested in the cannabis market.

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