Mr. Ekniti Nitithanprapas, Thailand’s Deputy Prime Minister and Minister of Finance, disclosed that Thailand has now become a fully aged society. The government is preparing on all fronts to address the challenges posed by this demographic shift, while also aiming to promote holistic wellness, leveraging the country’s strengths in traditional Thai herbal medicine and its highly skilled medical professionals to drive the integrated medical industry forward.
The government has revised the Board of Investment (BOI) strategy to focus on value, particularly in new economy sectors such as medical and health businesses. These are among ten future industries that the administration seeks to propel toward a high-value and sustainable economy. At present, the Ministry of Public Health is inviting global pharmaceutical companies to establish manufacturing bases in Thailand to create new opportunities in the sector.
According to Dr. Vinit Visessuvanapoom, Director-General of the Fiscal Policy Office, Thailand has been ranked as the world’s second leading destination for medical tourism in 2026 by the U.S.-based Travel And Tour World magazine. This distinction underscores the international recognition of Thailand’s healthcare system. He added that the government will highlight the longevity economy as one of four key proposals at the upcoming IMF–World Bank Annual Meetings in October 2026 in response to the aging population.
While there remain concerns, Thailand intends to demonstrate its capacity to turn the challenges of an aging society into significant economic opportunities. Dr. Vinit also noted that this global recognition provides a positive signal for the long-term outlook of Thailand’s healthcare and medical industries, which will bolster the sector’s standing in the Thai capital market.
Bualuang Securities (BLS) stated that Thailand’s recognition as a top medical tourism destination for U.S. patients is a positive development for the healthcare sector. Over the past several years, medical tourism has expanded at an annual rate of 10-15%, a trend expected to continue until at least 2050.
Among Thai hospitals, the following four stand out for their high proportion of international patients: BH (Hold, THB 220 TP) with nearly 70% of revenue from foreign patients, including about 5% from the U.S.; BDMS (Buy, THB 23 TP) with 25% from foreigners, 2-3% from the U.S.; PR9 (Buy, THB 22 TP) with 20% from foreigners, 1% from the U.S.; and BCH (Hold, THB 11 TP) with 10% from foreigners, 0.1% from the U.S. These hospitals are well-positioned to benefit from the continued growth of international patient inflows.
However, current government policy treats foreign patients much like ordinary tourists, which creates challenges such as slow visa processing and a lack of specialized medical hubs. Suggested policy enhancements include granting tax benefits such as allowing international patients to deduct medical expenses against VAT or service tax, and introducing economic stimulus vouchers for medical services to encourage patients and their families to spend in the tourism and wider services sectors.
From the Ministry of Finance’s perspective, attracting foreign direct investment to set up pharmaceutical manufacturing in Thailand will be positive for the economy and hospital sector through four key avenues: supporting industrial land sales, creating hundreds of thousands of jobs, boosting consumption in local areas, and reducing reliance on imported medicines. This is expected to lower hospital drug costs and improve profit margins, ultimately reducing long-term medical expenses for patients.
