At the Main Stage on Thursday at Techsauce Global Summit 2019, moderator Chokwan ‘Kitty’ Chopak, CMO and MD at Highland Network discussed the topic of the emerging cannabis industry with Clint Younge, President of Company X. The pair talked about the status of cannabis in Thailand: with cannabis legalized for medical purposes but still under tight government control, what roles do the private sector and communities play in shaping the regulations that will control every aspect of the new sprout of this industry? 

An Overview of the Cannabis Market

To start the discussion, both Clint and Kitty emphasized the benefits of cannabis that has been discovered through research, from its ability to help patients with various diseases from PTSD, anxiety, to suicidal tendencies. Clint added that, though in many countries the plant has been legalized for some time, the use of cannabis is still stigmatized. He also said organizations such as Thailand’s Highland are important in the community as it can help authorities realize the uses of cannabis.

Moreover, the cannabis industry is huge and growing. According to Clint, Canada’s recreational cannabis market is projected to be worth up to 35 billion dollars per year by 2021. With Thailand’s population as well as the population of neighboring countries, the nation’s potential to generate income for farmers and all stakeholders in the industry could be much higher. Clint noted that cannabis can serve its purposes on many levels and across several industries, from medicinal uses, to cosmetics and food, and it can create jobs to increase the employment rate among citizens. 

The Perils of Over-Regulation 

Though there is certainly a need for regulation, over-regulation, in many cases, has proven to be harmful to everyone in the industry. Clint revealed that Canada has made it impossible for the pioneers in the cannabis industry do business, and only big corporations were able to comply with strict regulations. 

Also, as it is increasingly difficult to buy cannabis legally in Canada, Clint disclosed that 80% of users would buy cannabis on the black market instead. He added that fair regulations from the government would inspire people to support the movement to legally buy cannabis.

Another factor to consider about over-regulation is that the practice tends to create products that are lower in quality. Clint revealed that as cannabis products in Canada would sit in cold storage for months waiting to be tested, its quality would diminish over time, and end consumers would have to tolerate subpar products. However, in Switzerland, where regulations are less strict, customers have access to cannabis with much higher quality.   

A Long Road Ahead 

With cannabis regarded as a sensitive subject around the world, it is likely that years will pass until cannabis is legalized for recreational use in Thailand. Clint revealed that in a period of nine years, over 50 associations tried to lobby for the legalization of the cannabis industry in Canada. However, he expressed confidence that as cannabis is not a short-term play, the industry will still be growing in the next 20 or 25 years, thus, it can only get better from now.

Thinking Like a Tech Startup

Kitty voiced her opinion that investors should open their mind to the opportunities in this industry, and that on the technical side, there is much room to grow, from developing blockchain platforms that can track cannabis from seed to sale, or agricultural technology that will enhance the growth of each cannabis strand -- all of these are opportunities for tech startups.

Meanwhile, Clint said the boom of the cannabis industry in Thailand may be 2 to 5 years away. However, startups need to stay ahead of the industry, and the timing to act is now. He also concluded that the companies that took the first risks are likely to be the most profitable in the end.