Report Thai Factories Face Labour Crisis: Automation Rising

[snoop1130]

Photo courtesy of Khmer Times

 

Thailand's factories are grappling with a significant labour crunch, prompting a push towards automation as a long-term solution. The shortage stems from a decline in Cambodian workers, amidst ongoing territorial disputes, impacting essential sectors like construction and agribusiness.

 

The Federation of Thai Industries (FTI) has highlighted the urgent need for Thai manufacturers to adapt. Kriengkrai Thiennukul, the FTI chairperson, stressed that while the shortage may be temporary, businesses are compelled to rethink strategies. "Factories are now actively seeking workers from Myanmar, Vietnam, and Laos," he noted.

 

To address this gap, Kriengkrai called on the Thai government to establish more labour agreements with neighbouring countries. These agreements aim to streamline the legal hiring process and mitigate the employment shortfall.

 

Despite Thailand hosting an estimated three million migrant workers from Myanmar, Laos, and Cambodia, many remain unregistered. Of these, workers from Myanmar constitute the largest group, with over 2.9 million individuals.

 

While temporary measures are in place, the FTI underscores automation as a sustainable solution to Thailand’s labour challenges. "Investing in automation can cut costs and improve production efficiency," Kriengkrai explained. This shift not only addresses immediate shortages but also fortifies industries against future disruptions.

 

In the interim, the FTI advocates for swift negotiations with Myanmar and Laos to legally onboard more workers, particularly in labour-intensive sectors like food processing, agriculture, and construction.

 

Tensions with Cambodia complicate these efforts. Thai officials acknowledge the challenges in restoring diplomatic relations swiftly. The FTI also monitors how this affects Thai-owned businesses in Cambodia, especially in garment and footwear manufacturing, where Cambodian labour is pivotal.

 

The ongoing instability has dented investor confidence. The Thai Industries Sentiment Index dropped to 86.6 points last month — the lowest since October last year — down from 87.7 in June. This decline mirrors industry concerns over disrupted border trade and the uncertainty surrounding political tensions.

 

As Thailand navigates these turbulent times, the shift towards automation signifies a critical turning point in preserving the nation’s industrial resilience. The move promises to bolster competitive edges while safeguarding against workforce shortages, a prudent strategy in uncertain times.

 

  Adapted by ASEAN Now from The Thaiger 2025-08-21

 

[chawbdurian]

How about we offer people a decent wage?

 

Just kidding, let's hire a bunch of Indians and treat them like slaves. What could go wrong? 

[VocalNeal]

As an automation/Instrument guy I don't think automation will help in construction or agriculture.  Just saying.

 

 

[Ralf001]

7 minutes ago, chawbdurian said:

How about we offer people a decent wage?

 

Just kidding, let's hire a bunch of Indians and treat them like slaves. What could go wrong? 

 

We are replacing humans with robots.