Narcotics are considered illegal substances in South East Asia, although, some countries grow a certain amount of legal opium for medicinal production. Drug policy and drug use patterns vary country to country, for example, the Malaysian government's strong anti-drugs stance results in harsh laws and little to no support for harm reduction programs which are seen to encourage drug use. On the other hand, it is believed that the Cambodian military are actively involved in promoting or protecting the production and trafficking of illicit drugs.

For centuries South East Asia has grown and sold narcotics. Today, the focal point of illicit drug production and trade is known as the 'Golden Triangle', a relatively lawless territory where Myanmar, Thailand and Laos meet. According to the CIA Factbook, Myanmar is the "world's second largest producer of illicit opium," behind only Afghanistan. Ethnic minorities living in the remote mountainous areas of the country depend on opium poppy cultivation to survive and are generally under the power of insurgent groups. The government is progressively gaining control of the area leading to a drop in opium cultivation however the sustainability of this decline is subject to the government's ability to continue with eradication programs and also develop alternative sources of income for the communities. Already, the production and sale of amphetamine-type stimulants is emerging and could surpass opium trade.

There exists a series of penalties for drug offenders including death under certain circumstances and three year jail terms for unregistered drug users. Myanmar is also engaged in sub-regional cooperation, and has established a working relationship with the respective narcotic control bodies in China and Thailand. Nevertheless, due to internal conflicts and a poor economy Myanmar continues to be a weak link in the supply control chain and faces future drug problems without development resources for opium farmers and HIV/AIDS health programs to eliminate the practice of needle sharing.

Unlike Myanmar, Thailand is no longer a significant producer of opium. Thailand does however face the problem of importation of opium, heroin and amphetamine-type stimulants from neighboring Laos and Myanmar. Thailand's narcotic act classifies drugs into five categories. Those found to be in possession of the most dangerous category of drugs, including no less than 20 grams of heroin, amphetamine, methamphetamine, ecstasy or LSD, will be imprisoned for 1 to 10 years and fined large sums of money. The highest penalty for heroin and methamphetamine traffickers is capital punishment. Recent changes in the narcotics law were made to see that drug addicts and those who support their habits by selling small amounts of drugs were forced to attend military style camp rather than jail. It was hoped that this would shift the focus of narcotic control attempts to drug traffickers and reduce crowding in jails, however, health care and treatment is not freely available to those in need and in February of 2003 the Thai government launched an all-out war on drugs. With hundreds of reported slayings - many in vague circumstances - human rights advocates express concern for the future of the country.

There is an estimated 2 to 3 million drug users in Thailand of which most use methamphetamine, and 60 per cent of incarcerated drug offenders are charged for possessing between one and 100 speed pills. Consequently, the Thai government has established a new national policy focused on stimulant supply reduction strategies. The seriousness of Thailand's HIV/AIDS epidemic has long been denied by the government. There is evidence to suggest that drug trafficking, injecting drug use, and HIV infection are woven closely together and that HIV follows drug trafficking routes. Asia had an estimated 7.2 million HIV cases in 2000 making it the world leader in HIV infection after Africa. Thailand is one of the worst affected countries. The first wave of HIV infection in Thailand occurred amongst injecting drug users, followed by the sex trade and finally the sexually active adult population and their children. This is a pattern observed throughout SE Asian countries and it is predicted that unless immediate action is taken, HIV will spread in a similar fashion through Central Asia.