Thailand's outdated tech sector casts cloud over economy

[fgmr]

Industry is once again showing that it will pursue greater ROI regardless of the form of government in the country it is investing in. How does media independence, human rights, judicial independence, and all the other markers of a free society compare? Who in Vietnam is prepared to criticize an authoritarian Communist government without fear of reprisal?

The shorter supply chain will only remain secure as long as Vietnam bends to China's claims over the South China Sea making it more dependent on China than ASEAN.

Once again China is showing the rest of the world that it's patient adherence to long term strategies will eventually bring greater returns than any short term ROI being chased by Industry from the free world.

[trogers]

Now you see the impact of Peua Thais high minimum wage. I am all for people getting a decent wage, but Thailand continues to remain 3rd world, especially with the mindset, which is partly due to not raising education standards. Thus you have a high wage expectation with a low skill level; thus go figure...

Thailand never got colonised due to giving away land to colonial powers; it seems to me that the countries that did get colonised seem to be able to modernise more quickly and adopt a more international mindset?

The LCD TV business is getting more cut throat all the time; I can see the need to drive production costs down.

High wage expectations? You mean the 300 baht daily minimum? Lesser then 300 Baht per day is defacto starvation...

There is nothing inaccurate about MaiChais reference to High wage expectations ?

In fact, in a television address to the nation just before Christmas General Prayuth said to the people even though they may feel like they need more money, if they compared their wages now to other parts of the Asian region, in some cases they are already receiving much more than some of their neighbours and he told them there is no room for more increase at the moment.

And when you add in the difference in standards regarding eagerness to work and desire to improve themselves (such as learning English) shown by young people in Cambodia, Vietnam, Myanmar to many of those here its easy to see how Thailand has now become uncompetitive.

Thais can sit and whine about wages and cost of living. The rest of the world would just roll pass by.

Labour is but a factor of production. Rice farmers had just found this truth a year ago.

[Thai at Heart]

Now you see the impact of Peua Thais high minimum wage. I am all for people getting a decent wage, but Thailand continues to remain 3rd world, especially with the mindset, which is partly due to not raising education standards. Thus you have a high wage expectation with a low skill level; thus go figure...

Thailand never got colonised due to giving away land to colonial powers; it seems to me that the countries that did get colonised seem to be able to modernise more quickly and adopt a more international mindset?

The LCD TV business is getting more cut throat all the time; I can see the need to drive production costs down.

High wage expectations? You mean the 300 baht daily minimum? Lesser then 300 Baht per day is defacto starvation...

There is nothing inaccurate about MaiChais reference to High wage expectations ?

In fact, in a television address to the nation just before Christmas General Prayuth said to the people even though they may feel like they need more money, if they compared their wages now to other parts of the Asian region, in some cases they are already receiving much more than some of their neighbours and he told them there is no room for more increase at the moment.

And when you add in the difference in standards regarding eagerness to work and desire to improve themselves (such as learning English) shown by young people in Cambodia, Vietnam, Myanmar to many of those here its easy to see how Thailand has now become uncompetitive.

Thais can sit and whine about wages and cost of living. The rest of the world would just roll pass by.

Labour is but a factor of production. Rice farmers had just found this truth a year ago.

They have missed the boat to transition out of agriculture to higher value precisely because the Thai Chinese conglomerates like it that way.

Agribusiness is too big and too outmoded to feed 20mn people. Agribusiness should have become mechanised and changed 15 yrs ago.

But the big boys want million of little farmers to squeeze. Plus ca change .

[selftaopath]

The heart of the Thai economy is esconsed into the hands of maybe 30 or 40 massively wealthy and powerful Thai Chinese families who get the policies they want to keep them in the gravy to the detriment of the rest of the economy.

Until this hegemony is broken, Thailand will not move forward.

And everyone thinks what is going on at the moment is about squishing the Shinwatras. It is about keeping these families in their dominant position preventing a changing of the guard. I mean honestly. The richest man in Thailand farms chicken and pork, whilst the consumers pay prices akin to the west. Hardly ground breaking innovation is it.

This is very true, the rich keep on getting richer, and the poor languish in poverty. The internet is however changing all that, and the poor Thais are realising they have been conned by those controlling them. The old way was keeping them dumb, by adopting poor standards in school (if you could afford to go). Then brainwashing them will outdated propaganda, and subjects which are of little use in a modern-day society. One of the reasons why Thais are so ignorant (not their fault of course). But the tide is changing, and people are waking up to the truth, that no longer can they be repressed in the same manner, and inevitably things will change.

I very much wish this was true... I guess to a small degree it is. By enlarge most Thais.... where we are (Isaan) are lucky to have electricity and that isn't reliable. No running water in the houses ( many open/ without all the walls) and just heard a/b "the internet."

Perhaps your view is more wishful thinking. I'm with you on that, but change???? When???? in the next 30 years? And only after Thailand's descent to the bottom of the Asian basin in everything. I could be different and possibly some day will be.

[BlackJack]

Just came back from a finance outlook seminar, Thailands biggest problem is the lack of skilled labor to move onto high tech skilled production. Thai students test scores has been on a decline, while the neighbors are increasing. Hence even with the already shortage of labor, there are not enough qualified labors to use if they want to hire at higher salary. The society is moving at a much faster pace than the citizens itself.

Thailand is quickly falling behind in terms, all the glitz and glam you see with the infrastructure are misleading.

Only solution is to dump money into education and training at vocational level so kids graduate having enough skills to jump into the high tech sector. Long term wise, its the same everyones been preaching about, overhaul education.

Not only that, the birth rate in Thailand is also one of the lowest in the region. While at the same time salaries are very low compare to living costs which is similar to Malaysia and some developed Asian countries.

Education and training yes

but with the archaic work permit rules this is a huge hindrance to employing skilled overseas teachers / tutors / intructors

Vietnam will eat this place alive

also last years when the Australian dollar was to high this greatly effected exports and tourism - now its at a reasonable level

Thailand is facing a similar issue

The baht is to high for Thailands own good

In December things will start to move and is Thailand ready?

[MartinBangkok]

The Irony here is that Thailand is bringing happiness to its neighbors - Vietnam.

Hehehe :-)

[trogers]

Just came back from a finance outlook seminar, Thailands biggest problem is the lack of skilled labor to move onto high tech skilled production. Thai students test scores has been on a decline, while the neighbors are increasing. Hence even with the already shortage of labor, there are not enough qualified labors to use if they want to hire at higher salary. The society is moving at a much faster pace than the citizens itself.

Thailand is quickly falling behind in terms, all the glitz and glam you see with the infrastructure are misleading.

Only solution is to dump money into education and training at vocational level so kids graduate having enough skills to jump into the high tech sector. Long term wise, its the same everyones been preaching about, overhaul education.

Not only that, the birth rate in Thailand is also one of the lowest in the region. While at the same time salaries are very low compare to living costs which is similar to Malaysia and some developed Asian countries.

Education and training yes

but with the archaic work permit rules this is a huge hindrance to employing skilled overseas teachers / tutors / intructors

Vietnam will eat this place alive

also last years when the Australian dollar was to high this greatly effected exports and tourism - now its at a reasonable level

Thailand is facing a similar issue

The baht is to high for Thailands own good

In December things will start to move and is Thailand ready?

Baht should be higher - Bt28 to US$1

[Oziex1]

Talk of the minimum wage is perhaps of little consequence as the people doing the work are from across the border, receiving less than the minimum wage I would think.