Thailand targets over 68bn baht in medical investment, with MSD pact planned to expand clinical trials

The joint public–private committee on economic problems, chaired by Prime Minister Anutin Charnvirakul, has announced four priorities for driving Thailand’s economy:

1. Future Investment Hub: Establishing Thailand as a centre for future investment.
2. Trade and Service Engine: Upgrading trade and services.
3. Human Capital Engine: Developing human capital.
4. Government Effectiveness Engine: Improving government efficiency.

The committee’s subcommittee on developing new investment, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, subsequently identified five strategic investment areas:

1. Investment and Industry Transformation Hub
2. AI and Digital Hub
3. Green Economy Hub
4. Financial Hub
5. Medical Hub

The plans aim to establish Thailand as a base for future investment and economic activity, with GDP growth exceeding 3% and investment accounting for more than 30% of GDP. Thailand also aims to move into the world’s top 20 for competitiveness, from 24th place.

More than 68 billion baht in investment to lift GDP by 0.5%

Public Health Minister Pattana Promphat told Krungthep Turakij that the Medical Investment Hub strategy would focus on medical innovation and high-value healthcare services.

He said the strategy aimed to increase GDP by at least 0.5%, equivalent to more than 100 billion baht in economic value, by attracting new investment exceeding 68 billion baht, or more than 0.3% of GDP. It also seeks to improve Thailand’s health and environment competitiveness ranking from 56th to 50th.

The ministry has set targets for three pillars:

Service Hub: More than 25 billion baht in additional investment, with a projected GDP increase of 0.2%.

Research and Development Hub: More than 5 billion baht in additional investment, with a projected GDP increase of 0.05%.

Product & Health Manufacturing Hub: More than 37 billion baht in additional investment, with a projected GDP increase of 0.25%.

“Thailand will no longer be merely a healthcare hub that pays out public funds. We will move towards a health system that earns revenue and brings money into the system to sustain public healthcare,” Pattana said.

“We will also develop the domestic health industry so that, as far as possible, every baht spent moves from the left pocket to the right.”

Attracting patients who can afford to pay

Under the Service Hub pillar, the ministry plans to establish an International Health Agency and appoint health attachés to connect foreign patients, insurers and overseas government agencies with healthcare services in Thailand.

The attachés would also develop overseas markets and identify new customers, serving a role similar to commercial attachés specialising in healthcare.

The Public Premium Flagship Hospital programme would upgrade public hospitals to offer premium services meeting international standards. Premium clinics would generate revenue for the health system.

A Health Marketplace would provide a central platform connecting public and private healthcare services, making them easier to access. A Data & Access initiative would link national health databases to improve access and support policy decisions. The ministry also plans to improve i-Claim, the system for private insurance claims and reimbursements at public hospitals.

“Bringing money into public hospitals offers an opportunity to generate revenue to sustain the country’s health system,” Pattana said.

“We are therefore targeting Thai patients, foreign patients and overseas governments that can afford to pay for treatment in Thailand, particularly at public hospitals. We will focus on markets within a short flight of Thailand, such as Bhutan, the Maldives and South Asian countries, including Bangladesh.”

Extending medical visas

The ministry would work with the private sector, which already has a strong presence in wellness and medical services. Government agencies would discuss ways to make it easier for foreign patients to receive treatment in Thailand.

One proposal is to make medical visas more flexible so that their duration matches the treatment required for each condition, including chemotherapy and proton beam therapy.

The plans also include screening for undesirable entrants, electronic appointments and referrals arranged in advance, and links with Immigration Bureau data. These would allow authorities to identify foreign patients’ purpose of travel, accommodation and number of accompanying people.

Room for public and private hospitals, minister says

Asked whether attracting more paying Thai and foreign patients to public hospitals would put the state in competition with private providers, Pattana said there was room for both sectors to work together.

Thailand’s total healthcare spending across the public sector, private sector and smaller providers amounted to 4.59% of GDP, or more than 800 billion baht, he said.

The Public Health Ministry’s budget, including staff salaries and all forms of medical treatment, totalled no more than 350–360 billion baht. Combined revenue at the major private hospital groups listed on the stock exchange was no more than 300 billion baht.

“The combined value of the two sides is only one-third of the country’s total healthcare spending, so there is enormous room to attract new spending if they occupy different positions in the market,” Pattana said.

Establishing Thailand as a clinical research base

The Research and Development Hub aims to attract more than 5 billion baht in additional investment and increase GDP by 0.05%.

The ministry plans to establish a One-Stop Approval mechanism as a central point for applications and coordination of approvals, reducing procedural steps.

Fast Track & Regulatory Sandbox measures would accelerate promising research and innovation projects and address regulatory constraints.

A Data & Research Platform would connect health, research and investment information to support research and policy decisions. Clinical Trials & Global R&D Partnership initiatives would establish Thailand as a clinical research base and attract research and development investment from global companies.

The manufacturing pillar aims to attract 37 billion baht in new investment and increase GDP by 0.25%. The ministry plans investment and manufacturing memorandums of understanding with pharmaceutical, biologics and medical-device companies to bring investment into Thailand. Related Nation Thailand coverage

A Pharmaceutical Supply Chain Roadmap would set out a gradual reduction in reliance on imports and the development of domestic production.

Technology transfers would help Thai manufacturers improve their capabilities and standards. The Local Manufacturing & API programme would support a progression from formulation, filling and packaging to the production of active pharmaceutical ingredients (APIs), biologics and other high-value health products.

Investment talks with drug and medical-device companies

Pattana said negotiations under the joint committee’s framework would follow an “Offset Policy”. This requires overseas suppliers to return benefits to the purchasing country through investment, technology transfers or domestic employment, turning a buyer–seller relationship into a strategic partnership.

The subcommittee and the Board of Investment (BOI) would jointly consider investment incentives and measures to facilitate registration and government procurement plans.

In return, companies would have to invest within specified periods. Commitments could include clinical research, manufacturing technology transfers, or support for education and the development of Thai medical personnel.

The Public Health Ministry has held talks with 10 global drugmakers:

1. AstraZeneca
2. Novartis
3. MSD
4. Sandoz
5. GSK
6. Bayer
7. Boehringer Ingelheim
8. Roche
9. Takeda
10. Pfizer

The ministry also plans negotiations with manufacturers of advanced medical devices and medical consumables needed in large quantities.

“The idea is to negotiate the lowest possible medicine prices, and the government will provide fast-track procedures,” Pattana said.

“But companies receiving these benefits must invest in Thailand within periods of six months, one year, two years and beyond two years.”

MSD agreement planned as first ‘quick win’

Pattana said preliminary negotiations had produced a first concrete cooperation project, described as a “quick win”, with MSD (Thailand) Ltd preparing to sign a memorandum of understanding on September 9, 2026, to expand clinical research in Thailand.

Research into a single new medicine requires a budget of around 2 billion baht and is expected to create 1,000 jobs, he said. The ministry wants public hospitals with the necessary capabilities to receive priority, with private providers able to participate as partners.

MSD is also interested in transferring technology and working with the Government Pharmaceutical Organization (GPO) to produce an active pharmaceutical ingredient for a new HIV medicine.

The project could use the GPO’s existing manufacturing facilities. Pattana said the proposal would make Thailand one of two countries, alongside Brazil, to receive production rights for the medicine.

“Signing the first MOU with MSD will give companies whose investment plans we have already discussed, and others that enter negotiations later, confidence that Thailand is serious,” Pattana said.

Source: Bangkokbiznews