Thailand courts drugmakers with a 68 billion baht hub plan
Thailand imports about 90% of the ingredients its drug makers use, and only 9 of its roughly 144 GMP plants can make them.
Thailand's Public Health Ministry wants more than 68 billion baht of new investment in medical services, research and manufacturing, and in September 2026 it signed the first agreement under the plan, with MSD (Thailand). The numbers show how far manufacturing has to go.
The plan
The Medical Investment Hub strategy has three pillars, The Nation reported citing Bangkokbiznews: a service hub, a research and development hub, and a product and health manufacturing hub. Targets are more than 25 billion baht for services, more than 5 billion baht for research and more than 37 billion baht for manufacturing. The ministry says the plan should add at least 0.5% to GDP, worth over 100 billion baht.
The lever is what the ministry calls an offset policy: talks with 10 global drugmakers, including AstraZeneca, Novartis, MSD, Sandoz, GSK, Bayer, Boehringer Ingelheim, Roche, Takeda and Pfizer, on investing in Thailand. Public Health Minister Pattana Promphat said the aim is the lowest possible medicine prices with fast-track procedures for companies that invest. The Board of Investment will consider incentives alongside the finance minister's investment subcommittee.
The first deal
The MSD agreement, reported by ThaiPR on 10 September 2026, covers wider access to HPV and PCV vaccines, clinical research capacity in ministry research units, and an exploration of voluntary licensing of an HIV prevention drug to domestic makers. It expects more than 2,500 million baht of investment by 2027. Each project still needs a feasibility study and approval, and the Food and Drug Administration discussed faster approval of clinical trials.
The baseline
Krungsri Research's June 2026 pharmaceuticals outlook shows a large market that depends on imports. Domestic sales grew 4.4% in 2025. Krungsri, citing Fitch Solutions projections, puts generic prescription drugs at 108 billion baht and patented drugs at 73 billion baht; over-the-counter drugs reached 41 billion baht. Imports were 103.2 billion baht, up 3.4%. Exports were 16.6 billion baht, down 3.7%.
Thailand imports about 90% of the ingredients used in domestic drug production, Krungsri says, and more than 80% of its medicines overall by one cited estimate. Of about 144 factories certified for good manufacturing practice, only 9 can make active pharmaceutical ingredients.
What is being approved
Pharmaceutical investment is rising from a small base. Krungsri counts 14 approved projects worth 2.68 billion baht in the first nine months of 2025, up 43.4%. Finished drugs took 65% of the value, biotech and biopharma 27.8%, and one active ingredient plant worth 192.5 million baht was the first in six years.
Devices are harder to read. The BOI's 2025 totals, reported by The Nation, list 101 medical projects worth 28,883 million baht, but that groups devices with healthcare services and counts applications, not approvals. The BOI's November 2025 review says it promotes research and production of Class II and III medical devices.
Risks
Krungsri lists the threats: cheap imports from China and India, price controls on essential medicines, a shortage of biologics talent, and dependence on imported ingredients. The first agreement concerns research and vaccines, not active ingredient plants.
Next to watch: whether the other nine drugmakers sign, and what the BOI offers. The ministry presented the plan at a World Trade Organization forum in Geneva on 16 September 2026, The Nation reported.
FAQ
How much does Thailand want to invest in its medical hub?
More than 68 billion baht in new investment, the ministry says, including more than 37 billion baht for manufacturing and more than 5 billion baht for research.
How much of its drug supply does Thailand import?
Krungsri Research says Thailand imports about 90% of the ingredients its drug makers use. Pharmaceutical imports were 103.2 billion baht in 2025.
Has the BOI approved medical device factories?
The BOI lists medical device production as a promoted activity, but 2025 totals combine devices with healthcare services: 101 applications worth 28,883 million baht.
Sources
- The Nation: Thailand targets over 68bn baht in medical investment
- ThaiPR.net: MoPH and MSD push the Medical Investment Hub
- Post Today: MoPH and MSD sign the first global drugmaker agreement under the Medical Investment Hub
- Krungsri Research: Industry Outlook 2026 to 2028, Pharmaceuticals
- The Nation: Data centres drive BOI surge as 2025 investment value hits Bt1.876trn
- BOI: Thailand Investment Review, Issue 5/2025
- The Nation: Health ministry outlines medical hub plan at WTO
