Thailand Must Be Ready For Labour Changes Under Aec

[webfact]

SEMINAR

Country must be ready for labour changes under AEC

THE NATION

BANGKOK: -- Academics yesterday voiced concern about the impact of Asean's economic integration on employment in Thailand, as businesses become freer to move to other Southeast Asian nations with better investment environments.

The concern was expressed during a seminar on the economy and Thai labour at the Labour Ministry organised by Thammasat University's Human Resource Institute, the Foundation for International Human Resource Development and the Nikhom Chantharawithoon Foundation.

Labour Minister Phadermchai Sasomsap said his was among nine ministries tasked with preparing the country for the launch of the Asean Economic Community in 2015.

Phadermchai said the AEC would allow engineers, nurses, architects, surveyors, doctors, dentists and accountants to move freely among the 10 Asean nations to work.

As a result, Thailand may face shortages in these seven professions if Thais are lured by higher salaries in other countries. He said the Labour Ministry was working with the Education Ministry to try to increase the number of graduates in these fields.

Anusorn Thamjai, dean of Rangsit University's faculty of economics, said the AEC would affect employment in the country because of the liberalisation of the goods, services, investment and capital sectors.

Anusorn said the opening of the four sectors would cause investors to buy raw materials from other Asean countries or move their production bases.

The government and businesses should make preparations so that the liberalisation would not affect the country's economy, he said.

He advised Thai investors to adopt advanced technologies and skilled labour instead of using unskilled workers.

The increase in the daily minimum wage to Bt300 a day would help prevent a labour shortage in the country after the AEC's implementation, Anusorn said.

Liberalisation of the labour market would prompt Thai workers to seek foreign employment if they could get higher salaries in other countries, he said.

He also voiced concern that unskilled workers in the agricultural and industrial sectors would come into the country in high numbers, putting a strain on the country's welfare system.

But Weerachai Kuprasert, an official of the Foundation for International Human Resources Development, said the AEC represented an opportunity for Thai businesses, as it would expand the markets for Thai goods and services.

He said Thailand's tourism business would also be helped by integration under the AEC.

-- The Nation 2012-11-01

[CelticBhoy]

"He advised Thai investors to adopt advanced technologies and skilled labour instead of using unskilled workers."

This is not something that should be 'advised' but actually 'enforced' right across the board.

[asiawatcher]

Time will tell...

[geriatrickid]

Won't happen and Thailand will be caught flat footed. Fortunately for Thailand, with the climate changes, its position as a food provider will be strengthened and it will be able to keep on with the current approach.

[Moruya]

Slowly, extremely slowly it is dawning on them.

It's probably too late to react anyway.

The bottom line us that I can't see too many Thai graduates being in demand. The quality just isn't there unless they've been educated abroad.

[Moruya]

Won't happen and Thailand will be caught flat footed. Fortunately for Thailand, with the climate changes, its position as a food provider will be strengthened and it will be able to keep on with the current approach.

Indeed! Keep them uneducated and toiling in the fields. Well done.

[MaxLee]

"The increase in the daily minimum wage to Bt300 a day would help prevent a labour shortage in the country after the AEC's implementation, Anusorn said."

Well that sums it up,... IN YOUR FACE!!!!!!!

[fareastguy]

Yep Thailand sure has a shock coming, if it wants an equal share in Asean then it will have to up it's game on all fronts, either that or be the poor man in the team.

A brain drain will happen to a degree, anyone with a real education will follow the money & opportunities that will be available outside Thailand, as for the Bt300 holding them back.. that's just obsurd wishful thinking, soon that won't even feed a dog on the street.

Buying in technologies has never been a strong point either for Thailand, history shows a culture of putting up with second best built by cheap rate labour. The only way Thailand can secure competitiveness is when companies like Honda/Toyota/Isuzu etc want to build here & pay for the development themselves.

[hanuman2543]

"Liberalisation of the labour market would prompt Thai workers to seek foreign employment if they could get higher salaries in other countries, he said."

How many are willing and able to do that? Some hundred?

"He also voiced concern that unskilled workers in the agricultural and industrial sectors would come into the country in high numbers, putting a strain on the country's welfare system"

Put a strain on what?

Bottom line is, Thailand and the workforce here is prepared for nothing, Thai workers will go nowhere, but "qualified" people from other ASEAN countries will replace Thais in many jobs here. Time to wake up and face reality.

[PaulHamon]

How many are willing and able to do that? Some hundred?

I'm just some random aussie in Thailand and I know dozens of Thais that have the experience, skills and desire to improve their future. I'm not sure where you hang out but there are plenty of smart driven Thais.

Many of these will leave for better jobs/life, maybe not forever, but some will wonder if the grass is greener and venture over to take a look. Just like all us farang have done from our homelands.

[jerrysteve]

There are already many who left for better jobs and much better pay; but of course those are the ones who are fluent in English and who do have skills.

Every time I fly home to the U.S.A. and speak to Thais who are now living and working in good jobs, they say they do not want to come back to their mother country; with the exception of visiting their mother and fathers and other family members..

I expect the outmigration of Thais who do have skills and who do speak English to continue..

Walk into an American Embassy, British Embassy, Australian, Canadian Embassy etc and see all those Thais trying to get the hell out of Thailand.

And granted some will be students and Colleges and Universities, some will have bonafied work permits etc etc etc. Many will stay and not come

back to a country who's government cannot tell their Anus from a hole in the ground.

Edited November 1, 2012 by jerrysteve

[jaltsc]

"As a result, Thailand may face shortages in these seven professions if Thais are lured by higher salaries in other countries. He said the Labour Ministry was working with the Education Ministry to try to increase the number of graduates in these fields."

Hopefully, he means "qualified" graduates. I don't think the other countries give a dam_n if your father is the head of his village or that he will lose face if you don't hire his idiot son.

AND....How about raising the level of education for the sole purpose of having a better living standard for the Thai population? Had this been an actual concern, the education system would have been revamped decades ago. .

[Crushdepth]

Won't happen and Thailand will be caught flat footed. Fortunately for Thailand, with the climate changes, its position as a food provider will be strengthened and it will be able to keep on with the current approach.

Indeed! Keep them uneducated and toiling in the fields. Well done.

Until increasing mechanisation puts them out of work, as it inevitably will. The time to start fixing the education system is NOW.

[firdaus]

Well I don't see that govt is doing more concrete to improve Thai labor skills & productivity. Still the major international leaders can't speak about this problem here due to political ties & sentiments of Thais. Here the govt has provided the workers enough security to be relaxed & not to worry for wages & benefits. When these will wake up! These changes are needed to be enforced.

Edited November 1, 2012 by firdaus

[belg]

strain on welfare?

non thais pay full price or more for everything anyway (education, hospital, tourism, ...)

so what welfare will they abuse???

[1bbcd5]

Ahh! I stand corrected then, Thanks for clearing that up.

[lizardtongue]

Labour Minister Phadermchai Sasomsap said his was among nine ministries tasked with preparing the country for the launch of the Asean Economic Community in 2015.

Yep 2 years 2 months away and they are doing something that should already more or less be in place!

Thailand, Cambodia and Laos are more or less on par, Myanmar obviously behind (but appears to be trying hard to catch up), Vietnam a little ahead but none of them can compete with Malaysia and Singapore in terms of speaking English and education!

I really cannot see people from Malaysia and Singapore wanting to seek employment in Thailand and it's neighbors?

For example imagine the scenario of a Thai, Malaysian and Singaporean being interviewed for a job in say Vietnam? Maybe 1 in a 101 Thai's might be successful!

It was predicted ages ago that come 2015 there will be a shortage of labour simply because the way the Cambodians and Burmese have been treated by the Thai's now I would suggest if they can return to their home countries and earn more or less the same and receive better treatment they will be off ASAP.

I think that it will not take too long for Thailand to realize it's mistake, but then again TIT and more onus will probably be given to hosting Grand Prix's and the like

Too little too late AGAIN!

[bigbamboo]

There won't be a brain drain. Everyone will want to be at the hub of ASEAN...... which of course means Thailand!

[Soi Dog]

If the AEC truly comes into effect with free flow of people and services Thailand will be in real trouble. Better educated people from other countries will come here and relegate the standard undereducated Thais to working in Thai firms that don't care about English. Unfortunately, those firms will be a vanishing breed in the face of competition from other countries. The situation with the highly educated Thais will not change much. Those who feel compelled to stay here will still do so and do well. Those who want to go abroad will still do so and do well. Unfortunately, many of these highly talented people, at least the ones that I know, want to go abroad.

The "good" news is that AEC will not happen as planned. There is no mechanism to force countries to comply and the ASEAN 3 monkeys policy means that things will just keep on as they are.