Economy Sri Lankans Replace Cambodians As Thai Workforce Shifts

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Picture courtesy of Amarin TV

 

Thousands of Cambodian workers have returned home amid rising tensions following clashes on the Thai-Cambodian border. In response, Thailand is bringing in Sri Lankan workers to fill the gap left by the departure of these migrants. Labour Minister Pongkawin Juangroongruangkit confirmed the cabinet’s approval of a pact to recruit from Sri Lanka, with 10,000 workers ready and 30,000 more registered to come.

 

As the conflict continues, the Thai workforce landscape is undergoing a significant reshuffle. Thailand is also enlisting workers from the Philippines, Indonesia, and Nepal to contribute to its economic stability.

 

Prior to this unrest, more than 520,000 Cambodians made up about 12% of Thailand’s foreign workforce, highlighting their importance in sectors ranging from agriculture to construction.

 

The exodus of approximately 400,000 Cambodian workers prompts an urgent need for replacements, and Thailand is wasting no time in addressing the shortfall.

 

Despite the challenges, Minister Pongkawin remains optimistic, dismissing concerns over the US tariff rate changes impacting Thai factories and employment levels.

 

The recent reduction in tariffs to 19 percent from 36 percent is seen as a stabilising move, aligning Thailand with regional peers, reported Thai Newsroom.

 

While the United States remains Thailand’s largest export market, accounting for 18.3% of exports valued at 2 trillion baht, there are ongoing concerns regarding tariffs on goods transshipped via Thailand from third countries.

 

However, Thai officials have maintained confidence that these issues will not significantly impact the local labour market.

 

With a proactive recruitment strategy, Thailand is working to ensure its economy remains robust in the face of geopolitical tensions. The swift action to secure Sri Lankan and other regional workers reflects the country’s commitment to sustaining its workforce demands and economic momentum.

 

  Adapted by ASEAN Now from Thai Newsroom 2025-08-20