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Signed Subscription Agreement by Phumtham Prior to Departure from Position

Defense Minister Phumtham Wechayachai announced his approval of the long-stalled submarine acquisition contract, reportedly one of his last acts in office, prior to his resignation.

Agreed contract was finalized by Phumtham prior to departure from position
Agreed contract was finalized by Phumtham prior to departure from position

Signed Subscription Agreement by Phumtham Prior to Departure from Position

**Thailand's Long-Delayed Submarine Procurement Deal Approved by Outgoing Defence Minister**

After years of political and logistical challenges, Thailand's submarine procurement deal is one step closer to becoming a reality. Outgoing Defence Minister Phumtham Wechayachai approved the deal before stepping down from his position, marking a significant milestone in the process.

The deal, which involves the purchase of a Yuan-class S26T submarine from China, was initially approved during the military government of Prayut Chan-o-cha in 2017. However, complications arose, including issues with acquiring German submarine engines due to EU restrictions.

With Phumtham Wechayachai's approval, the agreement was signed before the end of June 2025. The deal now awaits final endorsement from the Cabinet.

The submarine, a derivative of Russia’s Kilo-class submarine, will cost approximately 12.4 billion baht. Due to the stalled plans to acquire German engines, the submarine will instead use a Chinese-made engine. The submarine is currently 64% complete, with 60% of the payment already made by Thailand.

As the deal moves forward, other defense procurement projects, such as the purchase of Swedish-made Gripen fighter jets, will be handled by Phumtham Wechayachai's successor. Phumtham Wechayachai aimed to conclude the submarine deal during his tenure and expressed the importance of selecting a capable and qualified candidate for the vacant defence portfolio, regardless of political party affiliation.

Phumtham Wechayachai, who also served as the deputy prime minister overseeing national security, prioritized cooperation with senior military commanders to improve welfare for lower-ranking personnel and raise morale within the armed forces. He also emphasized that speculation about the defence portfolio being vacant for three months is unfounded and that he will assume the role of Minister of Interior following the swearing-in ceremony on Thursday.

Despite not discussing future plans for his new role as Minister of Interior, Phumtham Wechayachai confirmed the submarine deal required his signature and he approved it, but did not provide further updates on its status. Several other matters, including military housing development and structural reform of army personnel, are progressing steadily under his tenure.

In conclusion, the long-delayed submarine procurement deal is now awaiting Cabinet approval, marking a significant step forward in Thailand's defense procurement efforts. The incoming defence minister will handle the finalisation of the Swedish-made Gripen fighter jets purchase, ensuring that these important defense projects continue to move forward.

The submarine procurement deal, approved by Outgoing Defence Minister Phumtham Wechayachai, is a development in Thailand's policy-and-legislation concerning defense and politics. The deal, now awaiting final endorsement from the Cabinet, is part of the general-news regarding ongoing defense procurement projects in Thailand, such as the purchase of Swedish-made Gripen fighter jets.

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