SEZs may lead to 'labour shortage, local conflicts'

[webfact]

SEZs may lead to 'labour shortage, local conflicts'
Visarut Sankham
The Nation

BANGKOK: -- THE plan to create special economic zones (SEZs) in five provinces could lead to a labour shortage that will hit efforts to boost labour-intensive industries, a leading academic has warned.

The shortage of labour could stem from decreasing birth rates in Southeast Asia, as the average number of children per family has fallen from six to 1.4, Viroj Narong, a director at the Thailand Development Research Institute Foundation, said at a Bangkok seminar.

He said improving economies in neighbouring countries were affecting the Thai labour market - as more workers were staying home.

In regard to the use of Article 44 of the interim charter to reportedly drive people from forestland so the SEZs can be set up, Viroj believed the government seems to have a big picture view of the matter without considering the details.

He said industries at the SEZs could affect local water supplies.

Another speaker at the seminar, Siam Intelligence Unit think-tank analyst Kan Yuenyong, said the SEZs' focus on labour-intensive industries was outdated for Thailand.

He said such industries would be moved to neighbouring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses.

The Thai government should focus on developing value-added products, start-up businesses and innovative and technology-savvy industries, he said.

Northern Agriculture Associa-tion adviser Prayong Doklamjan said the government had chosen Tak's Mae Sot district as the site for one SEZ as it believed only three households with land-right documents in the 2,193 rai (351 hectare) area would be affected.

But in fact, he said many people had lived in the conserved forestland for years and were being accused of encroaching on the land.

Prayong urged the authorities to hear the concerns of locals over the SEZ and an environmental impact assessment-like report should be conducted.

"If the SEZ results in local people losing their careers, changing their way of life, it would be iniquitous. After the SEZ's implementation in the area, the government should ensure their livelihoods will not worsen," he added.

Prayong also expressed concern over the use of Article 44, which was helping accelerate the establishment of the SEZ in Mae Sot including enabling forestland to become state-own land.

That could result in allowing investors' commercial use of the |land and conflict with locals, he warned.

"This conflict could create a hard situation for these people very soon, and no business investor would dare put their money into the area in the wake of such an unstable situation," he added.

Source: http://www.nationmultimedia.com/national/SEZs-may-lead-to-labour-shortage-local-conflicts-30273583.html


-- The Nation 2015-11-24

[ukrules]

Another speaker at the seminar, Siam Intelligence Unit think-tank analyst Kan Yuenyong, said the SEZs' focus on labour-intensive industries was outdated for Thailand.

He said such industries would be moved to neighbouring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses.

How about being more friendly to international businesses ?

I guess this is not possible for the Thai ?

[NeverSure]

TiT. It has .00001% unemployment so no jobs are needed. If businesses want to come to Thailand they have to follow Thai rules which include paying outrageous import duties on goods, machinery and materials. They have to pay Thailand's minimum wage which is far higher than other SE Asian countries.

Thailand is the hub of mouth hubba hubba.

[skildpadden]

"industries would be moved to neighboring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses. The Thai government should focus on developing value-added products, start-up businesses and innovative and technology-savvy industries".

I agree with him - more businesses are indeed looking elsewhere in the region. Especially Vietnam is looked at by many companies - including companies considering moving away from China. However moving from production to innovation in Thailand requires a labor force that can meet those requirements. That brings us back to the never-ending issue with current education in Thailand. They are not nurturing innovation and free thinking, but producing mind slaves which are really good at an assembly line, but not really useful when required to think creatively.

Thailand might suddenly find themselves standing in the middle not being able to compete on labor costs nor able to show innovative ways of business. Cheap labor is in the neighboring countries and innovation is found in places with good education such as Singapore. Thailand needs to come up with an intelligent plan to develop their economy - and sadly intelligence is really a rare resource in government agencies.

[Thai at Heart]

"industries would be moved to neighboring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses. The Thai government should focus on developing value-added products, start-up businesses and innovative and technology-savvy industries".

I agree with him - more businesses are indeed looking elsewhere in the region. Especially Vietnam is looked at by many companies - including companies considering moving away from China. However moving from production to innovation in Thailand requires a labor force that can meet those requirements. That brings us back to the never-ending issue with current education in Thailand. They are not nurturing innovation and free thinking, but producing mind slaves which are really good at an assembly line, but not really useful when required to think creatively.

Thailand might suddenly find themselves standing in the middle not being able to compete on labor costs nor able to show innovative ways of business. Cheap labor is in the neighboring countries and innovation is found in places with good education such as Singapore. Thailand needs to come up with an intelligent plan to develop their economy - and sadly intelligence is really a rare resource in government agencies.

What do you mean by "might suddenly"..? It has happened already.

There is a massive shortage of people to work in skilled jobs such as petrochemical or car industry.

The huge assistance given to companies like CP giving them a protected field in agribusiness is coming back to haunt them. When they should have been encouraging higher tech business into the country they were assisting agribusiness to continue to dominate.

Throw in a focus on spending all the govt money in Bangkok instead of planning to educate the rural population and they have the results they have today.

Stupid policy with serious outcomes today.

Edited November 24, 2015 by Thai at Heart

[elgordo38]

"industries would be moved to neighboring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses. The Thai government should focus on developing value-added products, start-up businesses and innovative and technology-savvy industries".

I agree with him - more businesses are indeed looking elsewhere in the region. Especially Vietnam is looked at by many companies - including companies considering moving away from China. However moving from production to innovation in Thailand requires a labor force that can meet those requirements. That brings us back to the never-ending issue with current education in Thailand. They are not nurturing innovation and free thinking, but producing mind slaves which are really good at an assembly line, but not really useful when required to think creatively.

Thailand might suddenly find themselves standing in the middle not being able to compete on labor costs nor able to show innovative ways of business. Cheap labor is in the neighboring countries and innovation is found in places with good education such as Singapore. Thailand needs to come up with an intelligent plan to develop their economy - and sadly intelligence is really a rare resource in government agencies.

He said such industries would be moved to neighbouring countries very soon, as nations like Myanmar and Vietnam were developing their infrastructure and were reportedly more friendly to international businesses. (paying cheaper wages) Let me understand they want to cut down more forests to build these outdated labor intensive businesses?? Looks like somebody is trying to push on a string here.

[connda]

Once you start hearing this rhetoric, you can expect to see a spike in immigration of cheap labor who are willing to work for even less than the local Thais. Instead of working for 300 THB/day, the 'cheap migrant labor' will work for 150THB/day doing "jobs that Thai don't want to do". Right out of the George 'Dubya' Bush era immigration doctrine.

[rubl]

There seems a bit of a conflict in the first two paragraphs of the OP

The first paragraph has that the creation of five SEZs could lead to labour shortage. Next the second paragraph has shortage of labour could stem from decreasing birth rate.

I guess the problem 'could' be a case of lost in translation, but somehow I think Thai logic 'could' also be the reason.