Discussions have also covered the testing of new precursor materials, including active pharmaceutical ingredients, or API, which are key components in drug production, as well as biosimilars. Such investment would require suitable areas and opportunities for foreign experts to work in Thailand.
Medical industrial estate under consideration
Pattana said the ministry would push ahead with the idea of a medical industrial estate if more medical-related companies invest in Thailand.
He said dedicated areas could be prepared for specialised medical industries covering a range of activities, from extracting key substances to producing advanced medical products. Companies that currently sell cancer medicines, for example, could later expand into other areas such as prosthetic limbs or artificial organs.
However, he said the process would have to move gradually. Establishing such an estate would not be difficult because Thailand already has criteria and support measures for target industries, but the ministry is still considering whether to use space in existing industrial estates or develop a new site.
“Investment must definitely take place within four years. Whether it is in an existing industrial estate, a new industrial estate or any other industrial area, it can happen anywhere. If investors want special incentives, such as in the Eastern Economic Corridor, the ministry is ready to push for it immediately,” Pattana said.
State hospitals could support medical AI research
Pattana said the ministry was open to allowing the use of databases from state hospitals under the Ministry of Public Health for medical AI research and development, but patient data security must come first.
He said the ministry must be confident that data protection is safe and watertight before allowing any research to proceed.
Pattana stressed the principle that private firms must not use ministry data to prove their technology and then return to sell medicines or technology back to the ministry at high prices.
He said he had instructed agencies and hospitals to be cautious and ensure clear agreements are in place. The aim is to prevent companies from using public health data to develop their own products before later charging the ministry high prices.
“The reason the health ministry has to talk about the economy and investment is that we need to find money to treat people. We also want to use the budget for as much screening as possible. If we can screen more people, we can prevent disease, reduce long-term treatment costs and allocate the savings to other areas of investment,” Pattana said.
Thailand urged to revive API production
Nakah Thawichawatt, chairman of the Health and Beauty Industry Cluster under the Federation of Thai Industries, said Thailand must also revisit domestic API production if it wants to become a medical leader.
He said Thailand still imports active pharmaceutical ingredients, which are essential raw materials for modern medicine. Lower-cost imports usually come from China, while India is a key source because of its large-scale production of affordable medicines. Higher-quality imports, he said, tend to come from Germany, Europe, the United States or Japan.
“More than 10 years ago, there was an effort to push API production in Thailand, but it had to be delayed and we lost out to other countries such as Indonesia, as well as established market leaders such as India and China,” he said.
Nakah said the effort stalled mainly because Thailand’s population was not large enough to make production commercially viable, while the country’s export capacity at the time was still limited.
From the FTI’s perspective, Thailand must revive API production if it wants to become a genuine medical hub. The federation is ready to bring pharmaceutical industry groups to discuss the issue with the Ministry of Public Health.
“Thailand is well known for services, such as hospitals and spas, which are accepted by foreigners. But in terms of products, we still rely on raw materials from overseas. The key question is how we can produce API ourselves in large enough volumes to make prices competitive,” Nakah said.
He added that API production may need to be promoted alongside Thailand’s recognised healthcare services to build credibility. Health products made in Thailand are also gaining more acceptance for their quality compared with products from some other countries, he said.
Pilot production of up to five APIs proposed
Nakah said Thailand should start with APIs for generic drugs, as innovative drugs require very high investment.
He proposed selecting one to five APIs that Thailand needs in large volumes for pilot production, with other products to follow later. The plan could be developed through cooperation between around 10 pharmaceutical manufacturers and one API producer, either Thai or foreign-funded, to ensure there are guaranteed buyers once production begins.
“Although foreign investors in the past chose to invest in API production in Indonesia or the Philippines because those countries have larger populations, I believe that if the government sends a clear signal that it is ready to support API investment, both Thai and foreign investors are likely to be interested,” Nakah said.
He said Thailand still had a chance to return as an API production base in ASEAN because of its quality advantage.
FTI pushes ‘natural product’ label for exports
The Federation of Thai Industries is also proposing a change in English terminology from “Herbal Product” to “Natural Product”, arguing that the current term can create the misunderstanding that the products are herbal medicines.
Nakah said “Natural Product” better reflects the term used in the United States and could help improve understanding in export markets.
The FTI is also discussing with the Food and Drug Administration whether such products should be allowed to make clearer claims on packaging. For example, if a product has been used traditionally to improve skin, reduce stomach pain or boost immunity, producers could be allowed to state such claims on labels, provided there is sufficient evidence.
At present, dietary supplements and cosmetics are restricted from making such claims.
“This would involve raw materials developed together with the private sector. This is not API, but something used in dietary supplements and cosmetics, where clear claims could be made on the side of the packaging. However, there must be long-term research, development by good factories and real-use testing before such claims are allowed. I think we will work with the FDA on this,” Nakah said.
