As an economy that relies on tourism and the free movement of people for a substantial part of national revenue, Thailand has been badly affected by the COVID-19 pandemic. Subsequently, Thailand has announced budget cuts for the current 2020 Financial Year (FY) package and the suspension of selected defense projects until FY 2021. The budget has been cut by US$557 million in 2020 to support a THB1.9 trillion stimulus package that will address the impact of the COVID-19 pandemic. Among suspended programs figure the procurement of two T-50 Golden Eagle aircrafts and the planned order of two Type 041 diesel-electric attack submarines. Both programs carry a level of political significance for Thailand; securing relationships with both China and South Korea amidst growing tensions around South China Sea territorial disputes.

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