The government is advancing deals with global pharmaceutical companies to attract investment, research, and technology transfer into Thailand, starting with MSD as the first deal and planning to sign with Sandoz within two weeks, aiming to reduce imports in the long term.
On 11 Sep 2026 GMT+7, Ms. Lalida Pertwiwatthana, Deputy Spokesperson of the Prime Minister's Office, revealed that the government is attracting investments from world-leading pharmaceutical and medical industries into Thailand under the strategy to promote Thailand as a Medical Investment Hub. This shifts the role from being merely a "drug buyer" to becoming an "investment partner," ensuring Thailand benefits from new investments, research and development, technology transfer, and development of Thai personnel.
This initiative operates under the Joint Public-Private Economic Problem-Solving Committee (EPC), chaired by Prime Minister Anutin Charnvirakul, and the Subcommittee on New Investment Development, chaired by Deputy Prime Minister and Finance Minister Akniti Nitithanprapas. The government is using the Offset Policy as a negotiation tool with foreign companies to ensure public procurement leads to investment and capacity building within the country.
The Ministry of Public Health, driven by Minister Patthana Prompattana, has initiated negotiations with 10 global pharmaceutical companies to bring investment plans into Thailand, including clinical trials, technology transfer for production, drug and active ingredient manufacturing, and development of Thai medical personnel, with the Board of Investment participating to consider investment promotion measures and related facilitation.
The partnership with MSD is the first quick win showing concrete results, focusing on expanding clinical research in Thailand. New drug research projects each involve investments of about 2 billion baht and have the potential to create around 1,000 jobs, while also opening opportunities for capable public hospitals to play a larger role in research.
Additionally, there is a plan to extend collaboration in technology transfer and production of active pharmaceutical ingredients (API) for new HIV drugs in partnership with the Government Pharmaceutical Organization. If successful, this will elevate Thailand from being a market and drug purchaser to playing a significant role in high-technology drug research and manufacturing.
Ms. Lalida said that following the MSD partnership, the government is preparing to close additional deals with other global pharmaceutical companies. Within approximately two weeks, a signing with Sandoz is planned, marking another step to attract global companies to invest and create economic activities in Thailand instead of the government being solely a product buyer from abroad.
"The government's challenge is that when Thailand procures drugs and medical products from global companies, we must generate greater benefits for the country through investment, research, technology transfer, domestic production, and creating high-skilled jobs. The goal is to transform the relationship from buyer-seller to investment partners who grow together. The MSD deal is the starting point, with more deals to follow," Ms. Lalida said.
The government aims to use this approach to build a high-value health industry base in Thailand, reduce long-term import dependence, and ensure that health expenditure circulates back to generate investment, technology, research, employment, and knowledge for Thai people, upgrading Thailand from a health service base to a key regional center for medical research and production.