Thailand Crisis Update: PM Suspended, Borders Closed, Economy on Edge | July 2025

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By Portail Asie Editorial Team

🔄 Last updated on July 7, 2025

At the heart of Thailand news at the turn of July 2025, the country is shaken by a major political crisis. Between a suspended Prime Minister, a rapid succession of acting leaders, and an economy showing signs of fatigue, the situation is evolving by the hour.

Thailand News: Political Crisis and Security

Major Security Alert in the South (Update July 2)

Several foreign governments have issued a high-vigilance security alert for the popular tourist provinces of Phuket, Krabi, and Phang Nga. This follows the discovery and neutralization of suspected explosive devices. The potential terrorist threat calls for increased caution throughout the country, including in areas frequented by tourists.

Thai authorities have attributed these attempted attacks to the “Barisan Revolusi Nasional” (BRN) separatist group, marking a potential expansion of their activities outside their usual strongholds. Following these discoveries, governments like Australia have issued specific travel warnings for these regions, urging their citizens to exercise a high degree of caution.

💡 Article updated on July 7, 2025: We are tracking the political crisis and security alerts in real time.

The timeline of the political crisis

Major Update July 3: New Acting PM Appointed as Reshuffled Cabinet is Sworn In

The political turmoil intensified as Phumtham Wechayachai, a veteran politician and loyalist of the Shinawatra family, was appointed as the new acting Prime Minister, making him the third person to hold the top job in as many days. On July 3, a reshuffled cabinet was officially sworn in by the King. Remarkably, Paetongtarn Shinawatra, despite her suspension as premier, participated in the ceremony and was sworn in as the Minister of Culture, thereby maintaining a role in the government.

Major Update July 1: Prime Minister Suspended by Court

On July 1, 2025, Thailand plunged into a new phase of political uncertainty when the Constitutional Court ordered the suspension of Prime Minister Paetongtarn Shinawatra. The decision follows a complaint filed by conservative senators, accusing her of breaching the Constitution’s “ethical standards.”

The crisis was triggered by the leak of a controversial phone conversation with Cambodia’s strongman, Hun Sen, amid border tensions. Initially, Deputy Prime Minister Suriya Jungrungreangkit served briefly as acting Prime Minister, while Ms. Shinawatra’s future hangs in the balance, pending a final verdict that could take several months. This suspension deepens the political fragility that was already palpable at the end of June.

June 25 Update: Full Closure of the Land Border with Cambodia

The crisis with Cambodia has reached a new critical stage. On Monday, June 23, the Thai army announced the closure of all land border crossings with Cambodia in six border provinces, including the busy Aranyaprathet-Poipet checkpoint. This drastic measure, which prohibits the movement of tourists, vehicles, and goods, follows the escalation of tensions after the armed incident at the end of May.

Dozens of travelers and workers are currently stranded. Only travel for medical or educational purposes remains authorized. For now, air travel between the two countries is not affected, but the situation on the ground remains highly volatile, and no reopening date has been announced.

June 24 Update: Persistent Political Tension

The political situation remains extremely tense. Sporadic gatherings continue to be reported in Bangkok, and uncertainty about the future of the current government dominates discussions. The situation is volatile and could see new developments quickly.

The Thai political climate is particularly unstable. The diverse coalition led by Prime Minister Paetongtarn Shinawatra is weakened, facing calls for resignation and protests. The uncertainty is such that scenarios of a resignation, new elections, or even a coup are being discussed, causing significant concern in the tourism sector.

These current events directly impact the country’s travel landscape. For a broader analysis, read our full report on Thailand tourism in 2025.

In addition to this internal crisis, there are diplomatic tensions with Cambodia. Following exchanges of fire in late May, Thailand accused former Cambodian Prime Minister Hun Sen of threatening its national security, notably through call scam networks. Regarding domestic security, caution is advised in certain regions. Foreign governments formally advise against travel to the southern provinces (Narathiwat, Pattani, Yala, Songkhla) due to a high risk of attacks. For complete and up-to-date information, it is highly recommended to consult the official travel advisories from your government.

Beyond these major national issues, daily life in Thailand continues with its own set of events. To follow local stories and the latest Thailand local news, please see our regularly updated news feed.

Economy and Tourism: Between Challenges and New Formalities

Thailand’s traditional economic engines are showing signs of exhaustion. A recent analysis has downgraded the GDP growth forecast for 2025, citing a simultaneous slowdown in tourism, industry, and agriculture. The tourism sector, although boosted by projects like the filming of Jurassic World: Renaissance, is observing worrying trends, notably a decline in Pattaya’s appeal to Chinese tourists. Confirming this trend, the World Bank on July 4 officially downgraded its 2025 growth forecast for Thailand to just 1.8%, citing a slump in Chinese tourism linked to security concerns.

Adding to this internal pressure is an external threat: the United States may impose a 36% tariff on Thai exports if a trade deal is not reached quickly, putting considerable strain on the economy.

However, in contrast to this challenging outlook, the country’s digital economy is projected to grow by 6.2% in 2025, driven by digital exports and online payments.

New Entry Formality: The Digital Arrival Card (TDAC)

Since May 1, 2025, the Thailand Digital Arrival Card (TDAC) has replaced the paper TM6 arrival card, aiming to simplify and speed up entry procedures into the country.

New Cannabis Regulation: End of Recreational Use

June 26 Update: Thailand is undertaking a major tightening of its cannabis legislation, marking the end of the recreational use that had flourished following the 2022 decriminalization. The Minister of Public Health, Somsak Thepsutin, signed a decree to reclassify cannabis as a narcotic and limit its use strictly to medical purposes.

This new regulation, which seeks to close the legal loophole that led to the opening of thousands of cannabis shops, will have direct implications for residents and visitors:

  • Reclassification: Cannabis will once again be considered a narcotic.
  • Strict Medical Use: Only consumption for medical purposes will be permitted.
  • Mandatory Medical Certificate: For any purchase, including for tourists, a medical certificate and a prescription from a licensed doctor detailing the patient’s condition will be required.
  • Control of Dispensaries: Existing establishments will need to obtain new licenses and ensure the presence of a healthcare professional, facing license revocation for repeated violations.

This reversal follows the rise of cannabis tourism and the proliferation of dispensaries, a situation deemed poorly regulated by the current government. Authorities are pushing for a swift implementation of these new rules, while granting a grace period for businesses to adapt. For travelers and residents alike, the takeaway is clear: the era of recreational cannabis in Thailand is over.

Weather and Environmental Alerts: Vigilance Required

Update July 7: The Office of National Water Resources (ONWR) has issued a major nationwide alert for the period of July 6-12. Heavy rain, risks of flash floods, and landslides are expected across the country. Authorities are urging maximum vigilance and recommending adherence to local safety instructions.

The monsoon season, which lasts until October, has begun, increasing the risk of floods and landslides. An unusual event also caused some panic in Pattaya on June 22, where the sea turned green with a strong sulfur smell. Furthermore, authorities have issued a warning about new drugs specifically targeting children.

July 2025 Agenda: Key Cultural and National Events

Despite the tense context, Thailand’s vibrant cultural and national life continues. If you are in the country in July, here are the major events you won’t want to miss:

  • Birthday of HRH Princess Chulabhorn (July 4): A day of celebration in honor of Her Royal Highness Princess Chulabhorn.
  • Asanha Bucha & Khao Phansa (July 10-11): Major Buddhist holidays marking the start of Buddhist Lent. July 10 is a national public holiday, and it’s important to note that alcohol sales are typically banned nationwide on these holy days.
  • Ubon Ratchathani Candle Festival (expected July 5-11): One of Thailand’s most spectacular festivals. Head to the Isan region to witness breathtaking parades of giant, intricately carved wax candles, traditional dances, and ceremonies marking the start of the Buddhist Lent.
  • HM The King’s Birthday (July 28): A major national holiday celebrating the birthday of King Maha Vajiralongkorn (Rama X). Across the country, buildings are adorned with flags and portraits. Bangkok hosts official ceremonies and public gatherings, offering a unique insight into the nation’s reverence for its monarchy.

In memory. The Pattaya community is mourning the passing of Alain Bazeilles, founder of the iconic bakery “La Boulange.” A respected and beloved figure, he was a cornerstone of the expat community and left his mark on countless residents and visitors for over two decades. Our thoughts are with his family and loved ones.

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About Oliver

Founder of Portail-Asie.com & Expat in Thailand
Since my first trip to Thailand in 2009, I've been captivated by Southeast Asia. Now living here as an expat, I created Portail Asie with a simple goal: to offer a real alternative to impersonal guidebooks. Every tip I share is road-tested, and every location is personally explored. What you're reading is the direct result of my first-hand experience, ensuring every guide is reliable, up-to-date, and authentic. You can read my full story on my About page.

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