Wouldn't it be wonderful if all our New Year wishes could be granted in the next twelve months? Actually the wishes expressed below could all become realities, or, at least, a start made on them, if government policy-makers have the determination to address these issues. Our New Year wishes for 2018 fall into three categories: some that would enhance the skills of young people entering the labour force; some that would benefit those already in the labour force; and finally some that would benefit those in the evening of their working lives or beyond.
For young people:
- More rapid reform of education:
Thailand spends a lot on basic education but results are among the poorest in the region. Improvements are needed at all levels: pre-school kindergarten, primary and lower / upper secondary. English knowledge, mathematics and science all lag by regional standards.
It all starts with the teachers. Teachers have always been respected in Thailand, but respect is not enough. Teachers need to be among the better remunerated, most incentivised members of society, with performance targets and evaluation like high performance managers. Buildings and equipment are important but modern teaching methods matter most. Higher levels of education will get nowhere if basic education is deficient.
- Technical and Vocational Education and Training (TVET):
Effective technical and vocational education and training form the basis of an innovative society. Much more needs to be done, both to improve the quality and enhance the attractiveness and appeal of new-style TVET. Well-paid teachers with practical industrial experience, together with appropriate equipment, will go a long way towards better student output. Equally important is a joint industry / education effort to make TVET a meaningful entry point to industrial experience. This means business input to curriculum design, monitoring of teaching, and cooperation in offering internships. Continuing TVET initiatives are essential, with employee day-release for continuing training, whether in educational institutions or at the workplace. Above all, efforts must be made to enhance the status of TVET, to attract the best secondary students rather than serving as a dumping ground for those who cannot reach the academic stream.
- Research universities of international standards:
Thai students have reached the highest standards of performance in the world's leading universities. But no Thai universities rank among the world's leadikng university institutions. There are many reasons for this mediocrity, including the inclusion of universities and their staff within the civil service structures. Whereas many international universities are at the forefront of research initiatives, Thai universities lag behind. Yet individuals and groups of lecturers have made significant scientific discoveries. A quick jump-start towards academic leadership might be effected by welcoming leading foreign institutions to establish themselves in Thailand on a fully autonomous basis.
For strengthening the workforce:
- Living wage rather than minimum wage:
Much emphasis is placed on minimum wages, but minimum wage levels have fallen behind rising costs of living, especially in urban areas. If Thailand is to move beyond the middle ranks among nations to reach the upper levels of advanced societies, a decent living wage for all is essential. This wage will require more efficient labour usage, with one worker doing the jobs of the present two. This in turn will mean proper job analysis, higher-efficiency, and introduction of automation wherever possible. Thailand is in the fortunate position of enjoying full employment, even shortages of workers, and therefore can afford to eliminate jobs without creating unemployment.
- Labour mobility and retraining:
With rapid innovation and emergence of the digital economy, many jobs will inevitably disappear entirely. This phenomenon, together with the emergence of new types of jobs, will require systematic retraining of the workforce at all levels, from management down to the workshop floor and warehouse yard. Such retraining needs to be at public expense, and the retrainees, who will be of mature age with dependent families, will need to receive remuneration during retraining periods.
- Gender mobilisation and equality:
Hardly any societies world-wide offer full equality to all, irrespective of gender. Thailand appears more favourable than many nations, but there is still a long way to go in order to achieve full equality. However since women form the majority at tertiary levels of education, yet do not attain full job equality, there is clearly a need for reform within employment. Inequality is conspicuous in any line-up of senior management, whether in the public or private sector. Men predominate, with a token one or two women on the side-lines. Since the male gender is incapable of childbirth and mostly inferior in child-rearing, this places extra burdens on women that can only partially be overcome by childcare facilities and social welfare privileges for women in pregnancy or with small children. However social and financial policy privileges to support women's progress in employment are a priority.
- Labour migration:
Thailand is not the only country with a poor record in offering hospitality for migrant labour. But if such labour is to continue to make up for shortfalls, both in basic labour and also for highly professional skills, radical reforms are needed. While policies may be justified in limiting permanent immigration, relaxation of medium or even long-term residence and work permits could alleviate critical shortages.
For alleviating the ageing society:
- Extended work lives:
It is now recognised that Thailand is fast moving towards an ageing society. Unlike countries such as Japan, Singapore or South Korea, Thailand is ageing before it is becoming affluent. This risks creating a generation of impoverished elderly people at the same time as there are increasing labour shortages in the economy. One solution for this situation is to extend the normal working life beyond the typical age of 60 years. This should not be to only 65 years, but as long as individual workers feel able and inclined to continue working. This may require changes of job function. But with improving health there is no reason why individuals should not maintain active working lives until 70, 75 or even 80 years. Special incentives, such as lower personal income tax rates, might be introduced to encourage continuing employment.
- Social benefits for post-employment:
However long workers can remain in employment, there must come a time when they are inclined, or obliged by health, to retire. In the past, the elderly received physical and financial support from younger family members, but this is increasingly difficult in the modern world. Thailand is overdue to devise a comprehensive and adequate retirement benefit system, contributory during employment for the adequately remunerated, and subsidised for the least well-paid. This is a difficult and costly burden for society as a whole, but is essential to avoid a looming, major social crisis.
Christopher F. Bruton is Executive Director of Dataconsult Ltd, chris@dataconsult.co.th. Dataconsult's Thailand Regional Forum provides seminars and extensive documentation to update business on future trends in Thailand and in the Mekong Region.
