Tackle Shortage Of Skilled Labour, Says German-Thai Chamber Chief

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INTERVIEW

Tackle shortage of skilled labour, says German Chamber chief

Petchanet Pratruangkrai,

Somluck Srimalee

The Nation

BANGKOK: -- Thailand has great potential to become a regional hub for trade and investment under the Asean Economic Community (AEC); however, the country urgently needs to solve the shortage of skilled labour as well as develop its education system to ensure upper-industry growth, a key foreign observer says.

In an exclusive interview with The Nation, Karl-Heinz Heckhausen, president of the German-Thai Chamber of Commerce (GTCC), said German investors were very confident that the Kingdom's economy would flourish under the AEC because it has many advantages over others in the region.

With a good, solid relationship between Thailand and Germany, this country is one of the most favoured destinations for German investors in Southeast Asia.

The GTCC foresees that Thailand will no longer be able to rely on manufacturing and industries that are labour-intensive because of rising wages. Thus the Kingdom needs to move into upper-echelon industries that rely on technology, and German enterprises are well placed to transfer such technology and provide training in how to use it, as well as help develop the education system.

"Thailand has high possibilities for becoming a hub in several industries, in particular those that rely on high technology and service. But the main problems that need to be solved concern labour shortages and a lack of skilled workers," the GTCC president said.

Industries that German investors have shown high interest in for the Kingdom include education, renewable energy, waste management, automobiles, hotels and hospitals.

"We know some automotive firms will expand into Thailand this year because it is well suited to be an automotive-production base," he said. However, he declined to disclose the names of these companies.

Heckhausen said the development of education to serve industrial expansion should be a priority for Thailand, otherwise the lack of skilled workers such as engineers would lower investors' confidence.

The labour problem has been raised for several years by many foreign investors. However, Thailand has not come up with concrete solutions to solve the problem, he said.

The GTCC president said the Kingdom needed to encourage every company to help train young people to serve industrial growth. Educational development and training for skilled workers should be implemented to ensure Thailand's ability to become a centre for technology transfer from Germany and a hub for Asean high-technology industries.

For instance, every German company needs to set up programmes to train youngsters so that they can take industrial expansion in the right direction. The GTCC also foresees that Thailand could be a hub for Germany to export goods to neighbouring countries - mainly Myanmar, Cambodia and Laos. Volker Treier, deputy chief executive and managing director for international affairs at the Association of German Chambers of Industry and Commerce, said Thailand had a big opportunity to be a centre of development to support the growth of many advanced industries. Although Thailand is not the top destination for German investors in Asean, some German companies foresee greater chances to expand their investment in many high-technology industries here.

Thailand is already a logistical centre in Asean. The domestic market is also large, and seamless borders under the AEC will ensure strong trade among Asean member states and with countries outside the region, he noted.

Treier said Thailand needed to increase its skilled workforce by at least 10 per cent, as the current labour situation is quite tough.

So far, Indonesia has drawn the largest amount of German investment in Asean. If Thailand wants to draw more investment, the government needs to think about educational development seriously as well as continuing to develop its established strengths, he added.

The GTCC has also encouraged Thailand to begin negotiations quickly with the European Union on a free-trade agreement, since it would promote stronger trade and investment between the two sides.

According to the chamber, Germany is the most important trading partner for Thailand among the EU member states. The value of bilateral trade was bilateral trade was 8 billion euros (Bt322 billion) in 2012, and Thailand has enjoyed a trade surplus with Germany.

The chamber says German trade and investment with Thailand is stable and firms are poised to seize new opportunities in the future ahead of Asean integration.

The Board of Investment of Thailand reported 31 applications with expected combined initial investment worth Bt3.14 billion from Germany last year.

-- The Nation 2013-01-28

[noitom]

Why should Thailand listen to the Germans? Tourism is booming, the Belgians are coming, there is no unemployment, Toyota is breaking records, everything is under control.

[dcutman]

The labour problem has been raised for several years by many foreign investors. However, Thailand has not come up with concrete solutions to solve the problem, he said.

This is like listening to a broken record. What past or current problems has Thailand been successful in solving? It just not in their DNA.

[Thai at Heart]

Yawn.

From an engineering perspective, if you start teaching kids better maths, physics and chemistry today, this solution comes into the market place in about 10 to 14 years.

[Melyn]

_{Zee Germans are right - the pay increases have all gone to the bottom end of the pay scale. Unskilled labour.}

_{The lower-middle that should include nurses, teachers, police, reatil bank employees, engineers etc. has seen relatively little and is having to fight for it as we have seen in strikes and protests.}

_{The danger is that the lower end will be content with their new salaries and will not strive to learn more whilst school leavers will be happy to leave at the earliest oportunity to start earning money.}

[Payboy]

Thailand has high possibilities for becoming a hub in several industries

Hubba! Hubba!

[geriatrickid]

There is a labour shortage because Thai family size has reduced as Thailand prospered. Unfortunately, the business model, particularly in agriculture still relies on the once plentiful supply of labour. This is a country with a negligible rate of unemployment. If this was North America or the EU, unions would be very powerful and wages would be skyhigh.

[Baerboxer]

Thailand has a German logisitcs hub................. now there's a thought.

[TackyToo]

Is this guy a drinking buddy of the Belgium Ambassador? If so, I guess they should meet Chalerm for "consultation"

Edited January 28, 2013 by TackyToo

[Mudcrab]

Yawn.

From an engineering perspective, if you start teaching kids better maths, physics and chemistry today, this solution comes into the market place in about 10 to 14 years.

teach them a trade and the results will be much sooner......and most likely better paid

[Suffinator]

Why would the Thai Authorities want to educate the people. They know full well that you cannot control or suppress the educated and that means you can't rape the finances. No, Thailand will remain what it is, uneducated and the wealthy will retain control and get richer.

If it ain't broke, don't fix it.

[PeaceBlondie]

1980-1985 2.95 1985-1990 2.30 1990-1995 1.80 1995-2000 1.77 2000-2005 1.68 2005-2010 1.63 2010-2015 1.58 2015-2020 1.54 2020-2025 1.50

[Tanaka]

Foreigners cannot come here and tell Thai people what to do! Thais already know. Just ask any of them.

[IsaanUSA]

Hey guys, we want to make more money, can you please kick it up a notch?

What happens when the AEC comes online? Is that going to hurt or help the shortage of skilled labor? It seems like that should be a greater concern to the Germans

[waza]

Great a better educated and informed middle class who are employed in value added production and innovation. People who can think outside the box, problem solve and make independent decisions. Graduating through a progressive world standard education system that encourages lateral thinking, self development, empowerment and adoption of world views.

Exactly what Thailand’s leaders don’t want, Karl-Heinz Heckhausen your such a joker. Thailand is happy with its dull, poorly educated sheeple that tow the governments propaganda line. After all, the government is actively dismantling the middle class because they support the wrong colour.

Edited January 30, 2013 by waza

[belg]

germans, again, did they already got paid for the road they build near dong meung? is the royal plane still kept hostage ?

go germany, kill jobs in your own country, to give to thai people, the german people will be thankfull for your efforts to increase the share value of the companies relocating here

[Thaddeus]

Let me get this straight.

There is a shortage of skilled labour now, the Thai education system isn't showing any visible signs of improving, historically never has.

But let's try and attract foreign investment now and hope that the skilled labour turns up at some point.

Doesn't sound like German business thinking to me, sounds like propaganda.