An unusual surge in Thai gold exports to neighbouring Cambodia has triggered calls for an investigation.
The shipments are seen as one factor fuelling a rally in the baht, which threatens to undermine the nation’s exports and tourism.
In the first seven months of 2025, Thai gold shipments to Cambodia jumped 19% from a year earlier to 71.3 billion baht (RM9.45bil) – a pace that may surpass last year’s record 106 billion baht (RM14bil).
The flows put Cambodia on track to rival Switzerland, the world’s gold refining hub, and Singapore, a regional trading centre, for shipments of Thai gold, according to Customs Department data.
It underscores Cambodia’s emergence as an out-sized destination for Thai gold, raising questions over the drivers of the trade and its implications for the baht’s fast appreciation this year.
The baht typically gets a boost when Thais sell gold, as the dollar proceeds get converted into the local currency.
The Federation of Thai Industries has found that gold and jewellery exports to Cambodia have surged since last year in amounts inconsistent with the country’s size and demand, chairman Kriengkrai Thiennukul said in an interview on Friday.
“It looks suspicious,” Kriengkrai said, adding that the BOT, customs authorities and the Commerce Ministry should investigate the transactions.
“It may come from grey businesses like scammers and casinos. It’s possible that they use gold as a tool for money laundering.”
Another possible factor weighing on the baht is remittance outflows from Thailand’s roughly 4 million registered migrant workers, with the actual number likely much higher when undocumented labourers are included.
These transfers – both legal and informal – may be draining domestic baht liquidity and adding pressure on the currency. — Bloomberg
