Post by : Rameen Ariff

Bangkok: Thailand’s gold industry has recently come under scrutiny following claims by the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) that gold exports to Cambodia may be contributing to the unusual strengthening of the Thai baht. However, leading gold traders in Thailand, including MTS Gold Group, have clarified that these exports are fully legal and follow all international and customs regulations.

MTS Gold Responds to JSCCIB Claims

Dr. Kritcharat Hirunyasiri, Chairman of MTS Gold Group, one of Thailand’s largest gold trading companies, addressed the allegations publicly. He stressed that gold exports to Cambodia are conducted legally, through proper channels, and do not constitute “grey market” transactions. He emphasized that these exports do not impact the Thai baht, which has appreciated primarily due to changes in the US dollar’s value.

Dr. Kritcharat outlined four key points to clarify the situation:

1. Compliant with Customs Regulations: The export of gold to Cambodia is processed through official customs channels in both Thailand and Cambodia. It is part of regular international trade and not an illegal or “grey” transaction.

2. Licensed Cambodian Traders: Gold trades are conducted with licensed Cambodian dealers. Currently, only 3-4 licensed traders in Cambodia handle these transactions, making them fully legal and transparent.

3. US Dollar Transactions: All gold trading between Thailand and Cambodia uses the US dollar. Since the baht is not involved in these transactions, the trade does not affect the baht’s value.

4. Thailand as ASEAN’s Gold Hub: Over the past five years, Thailand’s gold exports have increased significantly, particularly to Switzerland and neighboring countries. Exports to Cambodia are part of this broader growth trend.

Debunking the Baht Appreciation Claim

Dr. Kritcharat criticized the JSCCIB for making claims without proper verification. He explained that the baht’s recent strengthening is mainly due to a weaker US dollar, not Thailand’s gold exports. It is normal for the baht to rise when the dollar weakens. He also pointed out that only a small number of Thai gold traders export abroad, including to Cambodia, so these exports cannot influence the national currency.

Cambodia’s Gold Market and Regional Trade

While Cambodia is a smaller market, its ability to purchase gold in large quantities and resell it demonstrates the country’s growing trade capacity. Its proximity to major markets like Vietnam and China makes Cambodia an important regional trading partner. Dr. Kritcharat urged that these facts be recognized and that unfounded accusations should not harm Thai gold traders or raise concerns about money laundering.

Gold Traders Association Confirms Export Facts

Jitti Tangsitpakdee, President of the Gold Traders Association of Thailand, confirmed that gold exports to Cambodia are approximately 60 billion baht, accounting for around 10% of Thailand’s annual gold exports, which total several hundred billion baht. Thailand’s largest gold export markets remain Switzerland, Singapore, and Hong Kong.

Traders explained that gold often passes through Thailand from Singapore or Hong Kong before being exported to Cambodia. These transactions are small in size, involve multiple steps, and are fully recorded through banking and customs channels. The Anti-Money Laundering Office (AMLO) can trace all gold exports if verification is needed.

Data Shows Rising Trend in Exports

According to the Department of Foreign Trade, Ministry of Commerce, gold exports to Cambodia have been rising over the past few years:

• 2021: THB 8,627 million

• 2022: THB 55,781 million

• 2023: THB 12,562 million

• 2024: THB 105,982 million

• Jan–July 2025: THB 71,312 million

This growth reflects both Thailand’s position as a regional gold hub and Cambodia’s increasing demand for gold. Thailand also exports gold to countries like Laos, Indonesia, Japan, India, the United States, and China.

Importance of Legal Trade and Transparency

Thailand’s gold industry is highly regulated and transparent. All exports go through customs and banking systems, ensuring legality and compliance with international standards. Traders emphasized that responsible reporting and verification are crucial to avoid misunderstandings that could harm Thailand’s reputation in global gold trade.

The clarification from MTS Gold and the Gold Traders Association confirms that Thailand’s gold exports to Cambodia are legal, transparent, and do not affect the baht’s value. The claims made by JSCCIB, according to industry leaders, were unfounded and could create unnecessary concerns.

Thailand continues to strengthen its position as a major gold hub in ASEAN, with exports to Cambodia, Switzerland, Singapore, and other countries contributing to its regional and global trade influence. The focus remains on responsible, transparent trade that benefits both Thailand and its trading partners.

With proper oversight from authorities such as the AMLO and Customs Department, Thailand’s gold industry continues to operate legally, supporting economic growth while maintaining strong international credibility.