Price of Priorities
Issue 57 — Key Developments Across Cambodia, Laos, Myanmar, and Thailand
Editor’s Note
by Mattia Peroni, Lead Editor - Mekong Belt Desk
When budgets are tight, what a government chooses to fund says as much as what it cuts. In Myanmar, the junta is bankrolling a USD 1.5 million royal epic amid economic hardship, and critics say the real cost is history rewritten to flatter the military. In Cambodia, a record USD 6 billion microfinance portfolio is masking a debt crisis, one made sharper by displacement from last year's border conflict with Thailand. Laos, meanwhile, has just made poverty reduction its top national priority — a bold pledge from a government the IMF already rates as being in debt distress. And in Thailand, officials are moving to overhaul civil servant healthcare benefits, the latest attempt to rein in a budget where welfare spending now eats up nearly 38% of the total. Four countries, one question running underneath: when the money doesn't stretch far enough, who decides what gets funded — and who pays for what doesn't?
Myanmar 🇲🇲
Behind Myanmar’s Big Budget Konbaung Dynasty Film
by Ley Hlaing
Myanmar’s entertainment world has been currently divided over a massive new film project about the Konbaung Dynasty, which was the country’s last royal family. While the project is being marketed as a source of national pride, many critics believe it is a high-priced propaganda tool designed to serve the military junta’s narrative.
Officially announced during a media launch on 2 June 2026, the production is a five-part series that has been in the planning stages for about two years, although the creators say the dream for the film started fifteen years ago. The production team aims to release the first film in 2027. To support this large project, they are building a permanent 20-acre studio near Mandalay and Pyin Oo Lwin that is designed to look like a historic town where tourists can eventually visit.
The financial data behind this film is staggering for Myanmar’s current economy, with a total budget estimated between 8 and 10 billion kyats, which is roughly 1.5 million US dollars. To show the supposed glory of the old empire, the film will use real gold and genuine jewels for the royal costumes. Producers are also using advanced technology like Computer Generated Imagery and Artificial Intelligence to recreate historical battles and palace scenes on a scale never seen before in local cinema. Surprisingly, the film also features a massive cast, including nearly 100 famous stars and a total of over 600 male actors and more than 30 lead female roles. Well-known actors such as Nine Nine, Nay Toe, and Myint Myat have been cast in major roles as kings and historical heroes.
Beneath the surface of this big-budget project, there are deep concerns about the “propaganda machine” running the film. One of the main companies involved is the Shwe Mann Empire, which is led by Wai Min Maung. He is known to be a close associate of Khin Thiri Thet Mon, who is the daughter of the junta chief Min Aung Hlaing. Because she was a co-founder of a previous film company that is now under international sanctions, many people see this new project as a way to bypass boycotts and move military money into the arts. Critics argue that spending billions of kyats on a state-sponsored film during a time of extreme economic hardship and inflation is a calculated attempt to distract the public with a version of history that favors the military.
The film’s focus on a “Great Burmese Empire” is being called a tool for “Burmanization,” which promotes a history that puts one ethnic group at the center while ignoring or insulting others. A major point of anger is the casting of Nay Toe, a famous actor from the Rakhine ethnic group, as King Bodawpaya. Historically, King Bodawpaya is remembered for his brutal conquest of the Rakhine Kingdom and the theft of the sacred Mahamuni Buddha image and set it in Mandalay. Using a Rakhine actor to play the very king who oppressed his own people is seen by many as a shameless insult to Rakhine culture and a deliberate attempt to mock ethnic history. Ultimately, observers warn that this film is less about historical truth and more about rebranding the military’s image through expensive fiction.
Ley Hlaing is a former Political Science student from the University of Yangon, Myanmar. Currently, he is pursuing his BA at Parami University with a major in Philosophy, Politics and Economics. His academic and professional interests span community development, literature, minority issues, and social impact research. Having held roles as Research Assistant, Student Mentor, and Facilitator for local initiatives, he has constantly supported project management in literature and education programs in Myanmar.
Cambodia 🇰🇭
Cambodia Microfinance Portfolio Surpasses USD 6 Billion Amid Debt Risks and Border Fallout
by Sokna Thea, in Phnom Penh
Cambodia’s microfinance sector reached a historic milestone in 2025, with the total outstanding loan portfolio hitting USD 6 billion, up more than 15 percent from the year before. Deposits at the country’s four licensed Microfinance Deposit-Taking Institutions (MDIs) climbed 17.6 % to USD 2.99 billion. The sector served 1.53 million active borrowers and 2.21 million depositors through 950 offices and 22,531 staff.
Women accounted for 61 % of active borrowers and 63 percent of depositors, underlining the sector’s role in financial inclusion. Riel-denominated loans reached USD 1.4 billion, or 23.3 % of the total portfolio, while riel savings hit USD 393 million, reflecting steady public trust in the national currency.
But the headline growth masks serious household stress. Non-performing loans across Cambodia’s financial system rose to USD 4.7 billion, or 8.1 % of total loans, by June 2025, the highest level in years. A study commissioned by the Cambodia Microfinance Association itself found that 15 % of Cambodian borrowers spend more than 70 % of their monthly income on debt repayments. Cambodia already holds the highest microcredit debt per capita in the world.
These pressures sit inside a weakening economy. The IMF and World Bank both revised Cambodia’s 2025 GDP growth estimate down to 4.8 %, from 6 % in 2024, citing export volatility, slowing remittances, and weaker domestic demand. Average inflation rose to 2.7 %, up from 0.8 % the prior year. The IMF projects a further slowdown to 4.0 % in 2026.
A major shock came from the border conflict with Thailand, which erupted in May 2025, escalated in July and again in December, and displaced more than 500,000 people on both sides. A ceasefire was signed on 27 December 2025 and holds as of mid-2026, though sporadic incidents continue. The conflict disrupted trade and tourism in border provinces, triggered a mass return of Cambodian migrant workers from Thailand, and slashed remittance inflows that many rural households depend on.
The government introduced targeted social assistance for displaced civilians and appointed a working group to restore damaged infrastructure. The Ministry of Economy and Finance ramped up vocational training and job placement for returning workers. The National Bank of Cambodia directed financial institutions to waive fees, penalties, and interest payments for displaced civilians and defer principal repayments in conflict zones. With NPLs already at record highs and households squeezed between debt and lost income, the IMF urged the government to phase out loan forbearance and strengthen oversight of distressed assets before vulnerabilities deepen further.
Sokna has a background in International Affairs and Business & Commercial Law. He’s currently a Senior Project Coordinator at the Ministry of Economy and Finance of Cambodia, working on the Financial Management Information System (FMIS) Project. His professional focus is driven by entrepreneurship, business development, and financial technology, with a particular interest in how private-sector innovation drives Cambodia’s economic growth.
Lao PDR 🇱🇦
Poverty Reduction as National Agenda
by Thipphavanh Virakhom, in Vientiane
Laos’ National Assembly adopted a National Agenda on Rural Development and Poverty Reduction for 2027–2030 on 8 July 2026, making poverty reduction the government’s top development priority and targeting 100,000 families lifted out of poverty, with the national rate falling from 14.78 percent to 8 percent. Reading alongside the fiscal and administrative picture around it, the agenda raises questions worth tracking closely over the next four years, not because the goal is unreasonable but because of what achieving it would actually require.
Why does this matter now? Laos adopts the agenda at a moment when its public finances are unusually constrained. The IMF-World Bank Debt Sustainability Analysis released with the 2025 Article IV Consultation assesses Laos as being in external and overall debt distress, with an unsustainable rating reflecting large, protracted breaches of solvency and liquidity thresholds and continued reliance on debt service deferrals. Poverty reduction agendas of this scale typically depend on expanded public spending on health, education, water, and roads; precisely the categories competing against debt service for a limited budget envelope. The agenda’s call for increased domestic and international investment is therefore not a routine planning phrase; it is the central variable that determines whether the 2030 target is reachable at all.
What stage is this at now? The agenda has cleared its highest legislative hurdle, but adoption is a starting point rather than an operational plan. What typically follows in this kind of framework is a set of implementing decrees, budget line allocations tied to specific ministries and provinces, and coordination mechanisms between central agencies and the district and village authorities expected to deliver services locally. None of that machinery has been detailed publicly yet, which means the more meaningful test of the agenda’s seriousness will come in how the 2027 budget cycle actually funds it, not in the target figure itself.
What is beyond the target? Three questions stand out. First, the agenda pairs poverty reduction with “permanent settlement” of rural communities to reduce unplanned migration, while separate labour data shows continuing outmigration to Thailand driven by limited local livelihoods; whether settlement incentives can outweigh that pull is an open empirical question, not a given. Second, the 2025 assessment’s core diagnosis — unstable incomes and dependence on assistance — describes conditions that have persisted across previous planning cycles, so the agenda’s four-year horizon is short relative to the structural nature of the problem it names. Third, an 8 percent poverty rate is only as meaningful as the data system producing it; whether results will be disaggregated by ethnicity, gender, and geography — will determine whether declining averages reflect broad-based improvement or an uneven one.
What would it take? Taken together, these point to what would actually need to happen for the target to be met: a credible medium-term financing strategy that reconciles debt service with new social spending, an operational rollout with clear budget lines by early 2027, and a monitoring system granular enough to show where the remaining 8 percent lives, not just how many families cross the line on paper.
Thipphavanh holds a bachelor’s degree in international affairs. She is a governance and development professional specialising in rule of law, access to justice, and gender equality in Lao PDR. Her work focuses on strengthening justice sector institutions, advancing people-centred governance, and promoting gender-responsive systems. With extensive experience in project coordination, monitoring and evaluation, stakeholder engagement, and strategic communications, she has collaborated closely with national institutions and international partners to support inclusive and sustainable development.
Thailand 🇹🇭
Thailand to Revamp Government Healthcare Perks Amid Stretched Budget
by Satid Sootipunya, in Bangkok
The Thai government is planning to restructure its healthcare benefits for government officials due to the country’s already-stretched public finances.
Deputy Prime Minister Pakorn Nilprapunt last week ordered government stakeholders to urgently study replacing the current direct-reimbursement welfare system for civil servants with a private health insurance one to reduce healthcare-related expenses, following the country’s prolonged budget shortfalls.
For the draft 2027 annual budget, public sector welfare is set to reach 1.4 trillion baht (around USD 42.06 billion), accounting for 37.9% of the total annual budget. Meanwhile, research and development (R&D) spending is set to drop by 72 billion baht (USD 2.16 billion), marking an 8.4% decrease from the previous year.
Besides the standard personnel budget, there are an additional 572.620 billion baht in hidden expenses for civil servants. According to a report from local media outlet Krungthep Turakij, this includes: Healthcare Benefits (94.200 billion baht), Financial Assistance/Welfare (4.670 billion baht), Pensions and Retiring Allowances (389.090 billion baht), Salary Raises and Degree Adjustments (13.000 billion baht), Permanent Wage Earner Contributions (260 million baht), Civil Servant Reserves, Contributions, and Compensations (71.400 billion baht), and Local Government Personnel Expenses (10.2638 billion baht).
For decades, the Thai government has continuously run budget deficits at approx. 3–4% of Gross Domestic Product (GDP). Roughly 70% of the total government expenditure falls into a hard-to-reduce category, according to research conducted by Thailand’s fiscal policy expert Athiphat Muthitacharoen. A major part of this rigid expenditure is public sector personnel expenses.
Thailand’s Finance Minister Ekniti Nitithanprapas has consistently emphasized the government’s mission since taking office to create responsible state spending and lower the country’s severe fiscal deficits. These deficits have been Thailand’s main economic problem for decades, especially under the relatively low economic growth of the past ten years.
Despite that, S&P Global Ratings recently affirmed Thailand’s sovereign credit rating at BBB+ with a stable economic outlook, noting confidence in the country’s economic fundamentals, reduced external tensions, and clear government policy pathways.
Satid is a multimedia economic journalist and news anchor who covers macroeconomic trends, Thailand’s fiscal policy, and key regional developments for Bangkok Biz. A Journalism graduate from Thammasat University, he has reported on major issues such as the US–China trade tensions, the Myanmar crisis, and global corporate stories, drawing on prior newsroom experience at The Momentum, the Bangkok Post, AFP, and Varasarn Press. His work blends economic analysis, foreign affairs, and digital storytelling, with a strong focus on making complex financial and political topics accessible to Thai audiences.
Editorial Deadline 11/07/2026 11:59 PM (UTC +8)
