logo
Thailand moves to recriminalize cannabis, shaking US$1B industry

Thailand moves to recriminalize cannabis, shaking US$1B industry

CTV Newsa day ago

A cannabis plant is seen in this undated image. (Pexels)
BANGKOK -- Thailand's government is moving to recriminalize cannabis, plunging into limbo an industry estimated to be worth over US$1 billion that has boomed since the substance was taken off the country's narcotics list in 2022.
The push to impose new controls on recreational use of cannabis comes after the Bhumjaithai Party, which championed its legalization, withdrew from the ruling coalition last week following Thai Prime Minister Paetongtarn Shinawatra's apparent mishandling of a border row with Cambodia.
Late on Tuesday, Thailand's health ministry issued an order prohibiting the sale of cannabis for recreational use and making it mandatory for any retail purchase to require a doctor's prescription.
The new rules will come into effect once they are published in the Royal Gazette, which could happen within days.
'Cannabis will be classified as a narcotic in the future,' Health Minister Somsak Thepsuthin said on Tuesday.
Three years ago, Thailand became one of the first countries in Asia to decriminalize the recreational use of cannabis, but without any comprehensive rules to govern the sector.
Since then, tens of thousands of shops and businesses selling cannabis have sprung up across Thailand, many of them located in the country's tourism hubs. Thai Chamber of Commerce previously estimated the industry, which includes medicinal products, could be worth $1.2 billion by 2025.
Unregulated access to cannabis has created serious social problems, particularly for children and young people, said government spokesman Jirayu Houngsub.
'The policy must return to its original goal of controlling cannabis for medical use only,' Jirayu said in a statement.
The recriminalisation push has left some cannabis industry members like Punnathat Phutthisawong, who works at the Green House Thailand dispensary in Bangkok, stunned.
'This is my main source of income,' Punnathat, 25, told Reuters. 'Many shops are probably just as shocked because a lot of them invested heavily.'
The cannabis sector could have transformed Thai agriculture, medicine and tourism, but uncertainty and policy reversals have stymied any sustainable growth, said cannabis activist Chokwan Kitty Chopaka.
'The cannabis industry has become a hostage to politics,' she said.
On Wednesday, there was still a steady trickle of customers - mainly tourists - coming into cannabis shops in Bangkok's Khao San Road area, among them Daniel Wolf, who is visiting from Australia.
'There are shops everywhere, so how do they reverse this? I don't think they can,' he said, ' It's absolutely insane.'
By Chayut Setboonsarng, Napat Wesshasartar
(Reporting by Napat Wesshasartar, Chayut Setboonsarng and Panarat Thepgumpanat; Editing by Devjyot Ghoshal and Raju Gopalakrishnan)

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

North Korea will open a beach resort with plans to allow foreign visitors
North Korea will open a beach resort with plans to allow foreign visitors

National Post

time2 hours ago

  • National Post

North Korea will open a beach resort with plans to allow foreign visitors

Article content In February this year, a small group of international tourists visited North Korea for the first time in five years, but tourist agencies said in March that their tours to North Korea were paused. Article content Article content Kim's recent foreign policy prioritizes relations with Russia as he's been supplying troops and conventional weapons to support its war against Ukraine in return for economic and military assistance. But North Korea's ties with China, which has long been its biggest trading partner and aid benefactor, have apparently cooled as China is reluctant to join an anti-Western alliance with North Korea and Russia, analysts say. Article content Tuesday's ceremony that marked the completion of the resort's construction drew the Russian ambassador to North Korea and his embassy staff, KCNA said. But it didn't say whether any Chinese diplomats were also invited. Article content 'There seems to be issues that North Korea hasn't yet resolved in its relations with China. But North Korea has put in too much money on tourism and plans to spend more. Subsequently, to get its money's worth, North Korea can't help receiving Chinese tourists,' Lee Sangkeun, an expert at the Institute for National Security Strategy, a think tank run by South Korea's intelligence agency. Article content Lim Eul-chul, a professor at Kyungnam University's Institute for Far Eastern Studies in Seoul, also said that foreign tourism to the Wonsan-Kalma site will begin with Russians. But he said Chinese tours to the zone, a sort of civilian exchange, will also begin soon, adding bilateral trade between China and North Korea has been recovering. Article content Article content Lim said that South Korean and American tours to North Korea won't likely restart anytime soon, though both new liberal South Korean President Lee Jae Myung and U.S. President Donald Trump have expressed hopes to revive dialogue with North Korea. Article content In January when Trump boasted about his ties with Kim, he said 'I think he has tremendous condo capabilities. He's got a lot of shoreline,' a likely reference to Wonsan-Kalma. Article content North Korea hasn't publicly responded to Trump's outreach. It has repeatedly rejected Washington and Seoul's dialogue offers and focused on expanding its nuclear weapons program since Kim's high-stakes nuclear diplomacy with Trump collapsed in 2019. Article content

IBI Announces 23-Fold Surge in Net Profit for FY2025
IBI Announces 23-Fold Surge in Net Profit for FY2025

Globe and Mail

time3 hours ago

  • Globe and Mail

IBI Announces 23-Fold Surge in Net Profit for FY2025

HONG KONG, Jun 26, 2025 - (ACN Newswire) - IBI Group Holdings Limited (' IBI ' or the ' Company ', together with its subsidiaries, the ' Group '; Stock Code: 1547), a company focused on investments in the built environment, today announced its audited consolidated results for the year ended 31 March 2025 ('FY2025' or the 'year under review'). FY2025 was marked by a challenging global economic environment, which placed significant pressure on the construction industry and resulted in highly competitive tendering conditions. At the same time, global trade tensions triggered unexpected volatility, prompting capital flows to shift towards Asia. This trend has begun to invigorate the Hong Kong market and may help to alleviate some of the pressure on Mainland China's manufacturing sector. Coupled with a strong rebound in inbound tourism and improving market sentiment, these developments have contributed to a more optimistic local outlook. The Group remains confident in Hong Kong's economic prospects and, with its rigorous risk management, effective cost control, and strategic focus on emerging opportunities, is well positioned to navigate the evolving landscape and drive sustainable growth. During the year under review, the Group demonstrated remarkable resilience and delivered a solid financial performance. Profit attributable to the owners of the Company surged around 23.0 times to approximately HK$8.4 million (FY2024: approximately HK$0.4 million). This increase was mainly attributable to improvement in the Building Solutions segment, the recognition of the unrealised profit generated from financial assets at fair value, and the recognition of a significant fair value loss on investment property in the previous year. Basic and diluted earnings per share was HK1.0 cent (FY2024: HK0.0 cents). The Board has recommended the payment of a final dividend of HK0.5 cents for FY2025 (FY2024: HK0.5 cents). Mr. Neil Howard, Chairman and Chief Executive Officer of IBI, said, 'Despite the challenging global economic environment, the Group delivered a strong performance in FY2025, with profitability rising significantly. Furthermore, towards the end of the period, the Group successfully secured four large projects with a total value exceeding the entire turnover for FY2025. This notable result highlights the effectiveness of our strategic focus, the depth of our resilience, and our ability to adapt quickly to change. Looking ahead, we will continue to strengthen our business development, respond swiftly to market dynamics, and pursue continuous improvement to drive long-term value creation and deliver sustainable returns to our shareholders.' Business Review IBI provides world-class interior fitting-out and building refurbishment services in Hong Kong and Macau, predominantly acting as the main contractor for clients across many industry sectors. The construction industry remained under pressure for most of the year. Although the Group completed a higher number of projects compared to the previous period, many were smaller in scale, resulting in a decline in turnover. However, through strict cost control and proactive final accounting by the commercial team, the segment delivered a solid set of results despite the challenging environment. During the year under review, the Group recorded profit from contracting of approximately HK$7.4 million (FY2024: approximately HK$15.2 million), completed 12 projects, and was awarded 13 projects. Notably, during the latter part of the period, the Group secured four large projects with a total value exceeding the entire turnover for FY2025. In May 2025, IBI entered into a memorandum of understanding regarding a potential investment in the development of a new central business district covering around 318 hectares in Manila, the Philippines. Leveraging its expertise in construction and project management, the Group will serve as project advisor, overseeing the project and providing professional advice on construction, procurement, and progress. This collaboration supports the Group's long-term strategy and, if realised, could diversify its income streams and support long-term growth. These projects will lay a strong foundation for FY2026. In Macau, IBI secured its first project since resuming operations. The Group is actively rebuilding relationships with previous clients and aggressively tendering for new projects. Solutions The Group's subsidiary, Building Solutions Limited ('BSL'), which provides products and services that enhance the performance and well-being of the built environment in order to provide modern, healthy and high-performing spaces for occupants, recorded a significant and continued improvement in its performance. During the year under review, BSL recorded a segment profit of approximately HK$0.6 million (FY2024: segment loss approximately HK$0.3 million), with sales revenue increasing by 58.2% year on year. BSL achieved profitability during FY2025, marking a significant milestone for the start-up. With continued research and identification of new products, the Group believes that the division's reputation for delivering high-quality building products and services will achieve further growth. Investments The Group's strategic investment division was established to efficiently allocate capital into new market sectors and expand its presence in the built environment. During the year under review, the strategic investments division of the Group recorded a segment profit of approximately HK$0.9 million (FY2024: segment loss approximately HK$3.2 million), which was realised from an unrealised fair value gain on its investment in a large real estate investment trust, a Hong Kong-listed company that owns and manages a diversified and high-quality portfolio. Regarding the assets in Japan, specifically the plots of land in Kutchan, Hokkaido, the Group is continuing to analyse the optimum strategy for the site, and is considering expanding the project, as the analysis indicates that a larger-scale development could provide significant economies of scale and a far greater return on investment. Moving forward, the Group will continue to explore potential investment opportunities and looks forward to announcing further successes in this area. Investments The Group's property investment subsidiary focuses on purchasing physical real estate to generate additional income and expand the Group's geographical presence. The property investment division of the Group recorded a segment profit of approximately HK$2.5 million for FY2025 (FY2024: segment loss approximately HK$8.1 million), maintaining a steady performance and a 100% occupancy rate. During the year under review, the Group engaged a planning architect to survey the West Wing rooftop area and prepare an initial design for additional commercial space. The Group then held a pre-planning meeting with the local government planning office, which gave positive feedback and indicated that it would not object to the construction of an additional floor. This addition would create 2,500sq ft of tenantable space, which is expected to have a positive impact on the property's valuation. About IBI Group Holdings Limited (stock code: 1547) IBI Group Holdings Limited is a publicly listed holding company on the Hong Kong Stock Exchange, focused on investments in the Built Environment. The Group's investments whilst principally centering around the role of contracting, include businesses providing innovative, high quality manufacturing and supply solutions across a diverse range of the built environment. Our mission is to deliver premium products, services and customer experiences with a strong influence of innovation, sustainability and wellness. For more information, please refer to IBI's website: ]]> Source: IBI Group Holdings Limited Copyright 2025 ACN Newswire . All rights reserved.

Cannabis Operator Curaleaf Plunges 46% YTD: Time to Sell or Hold?
Cannabis Operator Curaleaf Plunges 46% YTD: Time to Sell or Hold?

Globe and Mail

time4 hours ago

  • Globe and Mail

Cannabis Operator Curaleaf Plunges 46% YTD: Time to Sell or Hold?

Widely regarded as the largest cannabis operator by revenues, shares of Curaleaf Holdings CURLF have been declining persistently over the past few years due to regulatory hurdles and intensifying competition. While this Connecticut-based company has been aggressively cutting costs and expanding abroad, the core domestic market remains challenging to navigate, limiting the impact of its international progress. Let's delve into the company's fundamentals to gain a better understanding of how to play the stock amid this price decline. CURLF's Domestic Weakness Eclipses International Gains Curaleaf maintains a diversified business model in the cannabis space, spanning both retail and wholesale channels for both recreational and medical use, along with hemp-derived beverages. However, its top line continues to face pressure from a deteriorating domestic market. In its first-quarter results of 2025, Curaleaf's overall revenues fell by 9% year over year and 6% sequentially to $310 million. Although sales from the company's international segment increased by 74% year over year, it still represents a relatively small portion of the total revenues. Most sales continue to come from Curaleaf's domestic business, which remains under pressure due to the ongoing market saturation, pricing challenges and regulatory uncertainty. Despite these headwinds, Curaleaf reported an adjusted gross margin of 50% (up 250 basis points YoY) and even managed to generate $26 million in free cash flow. While higher selling prices and operational efficiencies drove this improvement, it was still not enough to turn a profit. The company's adjusted EBITDA margin declined 180 basis points YoY to 21%. Looking ahead, we expect the company to scale its international business and boost domestic profitability by focusing on high-margin formats, such as hemp-derived beverages and other products. The company's multiple cost-saving initiatives could further improve margins. Cutthroat Competition From Other Cannabis Players Curaleaf is targeting an overcrowded market. It faces stiff competition from its peers — Aurora Cannabis ACB, Canopy Growth CGC and Tilray Brands TLRY — all of which are also pursuing international expansion and cost optimization strategies, making the competitive landscape even tougher. As CURLF gains ground in Europe and Australia, competitive responses from Aurora Cannabis, Canopy Growth and Tilray Brands could intensify. CURLF Stock Performance and Estimates Shares of Curaleaf Holdings have plunged 46% year to date against the industry 's 7% rise, as seen in the chart below. Loss estimates for 2026 and 2027 have widened over the past 60 days. How to Play CURLF Stock? While Curaleaf's push into the THC beverages via its Select brand demonstrates strategic foresight, the persistent decline in its core domestic business makes it a risky bet in the near term. Also, a proposed federal bill that could significantly restrict (or even ban) the majority of hemp-derived products was recently approved by a House committee, posing further regulatory uncertainty. With a Zacks Rank #4 (Sell), the stock offers limited upside and elevated risk for conservative investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tilray Brands, Inc. (TLRY): Free Stock Analysis Report Aurora Cannabis Inc. (ACB): Free Stock Analysis Report Curaleaf Holdings, Inc. (CURLF): Free Stock Analysis Report

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store