Cabinet approves ฿19.5 billion Gripen jet deal and revives stalled submarine project with Chinese engines as acting PM Phumtham Wechayachai shuts down media, calling plans ‘state secrets’. Military vows transparency amid regional tensions and public scrutiny.
Acting Prime Minister Phumtham Wechayachai flatly refused to discuss military procurements on Tuesday, citing the current wartime climate. “These are state secrets,” he said, cutting off reporters’ questions. “I won’t talk about it.” Yet behind closed doors, the Cabinet had already signed off on a ฿19.5 billion deal to buy four brand-new Gripen fighter jets from Sweden. It’s the first batch in a larger 12-jet agreement publicly approved in June by the Royal Thai Air Force. At the same time, the government ended years of wrangling over the stalled Yuan Class S26T submarine deal. Originally signed in 2017, the project hit a wall in 2021 when Germany blocked delivery of the MTU396 engine built by Rolls-Royce.
Now, Thailand will go ahead with a Shanghai-based shipyard, greenlighting the use of a Chinese-made CHD620 engine already tested in similar submarines. The contract amendment gets the troubled project back on track—though at a cost of a 1,217-day delay.
After the Cabinet meeting, the Royal Thai Navy thanked the government for pushing the deal forward. Even People’s Party leader Nattapong Ruangpanyawut, usually a sceptic of military spending, gave quiet approval to the new Gripen purchase.
Thailand’s cabinet approves procurement deals to buy Gripen jets and complete Chinese submarine
Thailand’s armed forces took a decisive step forward on Tuesday, as the Cabinet approved two critical military procurement deals. The Royal Thai Air Force will buy four next-generation Gripen fighter jets from Sweden. Meanwhile, the Royal Thai Navy will amend its submarine contract with China, replacing German engines with Chinese ones. These moves reflect the government’s commitment to modernise defence amid rising regional tensions.
Moreover, the RTAF was granted approval to purchase four Saab JAS 39 Gripen E/F fighter aircraft. This is under a government-to-government agreement with Sweden. The deal is valued at ฿19.5 billion. Furthermore, the first phase includes three Gripen E jets and one two-seat Gripen F. Delivery is expected by 2029. Later phases will bring the total to twelve aircraft by 2036.
Additionally, the acquisition forms part of a long-term strategic plan. It will replace ageing F-16 aircraft that have served for over 37 years. The contract signing is scheduled between August 23 and 27, confirmed Air Chief Marshal Panpakdee Pattanakul.
Moreover, transparency standards are built into the procurement process. Indeed, the government-to-government model ensures auditability. Consequently, the deal includes offset obligations to benefit Thailand economically.
Gripen E/F fighters equipped with advanced radar and missiles, as the opposition requests clarity
Specifically, the Gripen E/F fighters feature cutting-edge AESA radar and electronic warfare systems. Furthermore, they can launch Meteor missiles with beyond-visual-range capabilities. The RTAF highlighted these advanced systems as strategic assets. Meanwhile, the official Facebook page announced: “Saab JAS 39 Gripen E/F … Ready for Take Off.” Thus, the post emphasised enhancements in Thailand’s air sovereignty.
Nevertheless, the Opposition Leader, Natthaphong Ruengpanyawut, voiced conditional support. He stated the opposition backed the budget already. However, he urged the government to explain the strategic need clearly.
Moreover, concerns had surfaced that Sweden might suspend the sale. These followed reports of older Gripens used in border combat on July 26. Thailand deployed Gripen C/D jets to strike Cambodian artillery. Thus, this marked the first combat use of Swedish-built Gripens.
However, the Swedish Embassy and RTAF denied any suspension. They confirmed that procurement proceeds as planned. Consequently, analysts saw the deployment as justification for the purchase.
Navy gets cabinet’s nod to amend submarine contract, replacing German engines with Chinese models
Simultaneously, the Royal Thai Navy received Cabinet approval to amend its submarine contract. Specifically, the Yuan Class S26T submarine engines will be Chinese CHD620 units instead of German MTU396. The amendment also extends construction by 1,217 days. The engine supplier deal had stalled since 2021 due to German export restrictions.
To elaborate, Thailand signed the government-to-government submarine contract with China Shipbuilding and Offshore International Co (CSOC) of Shanghai in 2017. Construction progressed to 64% before suspension in 2021. Ten out of eighteen payment instalments, totalling ฿7.7 billion, are complete. The remaining ฿5.5 billion is still pending. Consequently, the updated contract may accelerate completion.
Moreover, Admiral Jirapol Wongwit confirmed that the Cabinet approved the amendment. He promised the Navy would provide further details soon. Meanwhile, Rear Admiral Parat Rattanachaipan publicly thanked the Cabinet.
He said the change aligns with legal and transparency standards. Importantly, the revised deal includes extended warranty, spare parts supply and training. It also adds submarine control simulator support.
CHD620 engines meet certification and performance standards, while Phumtham refuses questions
Indeed, the CHD620 engines passed inspection and certification by Lloyd’s Register UK. Moreover, they are in use by other countries with similar submarines.
Consequently, the Navy asserted these engines match performance and safety standards. Meanwhile, naval officials claimed the completed submarines will boost maritime security significantly. Thus, the new vessel will enhance capabilities across surface, aerial, and underwater domains.
When pressed by reporters, Acting Prime Minister Phumtham Wechayachai refused to comment on either procurement. He stated that the details remain classified. “We’re not discussing this matter. It is a state secret,” he said. Furthermore, when asked repeatedly, he waved off the press, ending the briefing abruptly.
Nevertheless, military spokesmen provided clarity. The RTAF and Navy defended their procurement strategies. They emphasised compliance with the law and public interest. Moreover, both services pledged transparency in future stages.
Military investments in Gripen jets and submarine upgrades reflect a commitment to defence spending
Certainly, the Gripen purchase and submarine contract amendment mark major investments in national defence. With regional tensions rising and recent border clashes, Thailand is decisively moving to secure sovereignty. In the coming weeks, contract signing and submarine construction will carry forward under new terms.
Swedish Nonproliferation and Export Control Agency reviewing Thailand’s Gripen jets deal. No suspension
Thailand reverses course on 2023 submarine decision and will now proceed with a Chinese-made engine
Meanwhile, public scrutiny exists. Military officials promise open processes. Consequently, both services view August 5, 2025, as a turning point. Indeed, the defence modernisation path is now firmly underway.
Certainly, Thailand’s armed forces have strengthened air and naval power with these moves. Given the turmoil over the last few weeks and rising tensions in Asia linked with Chinese aggression, it may well be time for boosted defence expenditures.
Despite an increase in the budget for 2024, the Thai military budget is still only 1.08% of GDP. This is low by international standards. It compares to 2.3% for the United Kingdom and 1.9% for Germany. The US level is 3.36%.
Certainly, given the Kingdom’s dangerous borders in every direct direction and indeed its vulnerability, there is a strong case for far higher defence spending going forward.
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