List of contents

Thailand
Facts & Figures

Economy

   - Unfinished business
   - Jury out on populism
   - Making the most
     of state assets

   - The privatisation
     delemma

Two Views
   - Assessing
     Thaksinomics

   - Growth at any cost?
Finance & Markets
   - The next wave
      of change

   - Building a better market
   - No bubble yet
   - TAMC confounds
      its critics

Investment
   - Quality over quantity
   - The competitiveness
      challenge

Property
   - Bubbly, but not bursting
   - Home for the masses
Agriculture
   - Breaking the trap
      of poverty

   - Policy agenda
      interrupted

Industry
   - Back on track
   - Keeping the vows
   - Electrical and
     electronics
     sector upbeat

   - Petrochemicals riding
      the up cycle

   - The boom in building
   - SMEs in the spotlight
International Trade
   - Caught up in FTA
      mania

   - Thaksin: A new
     regional leader?

Energy
   - One step forward,
     two steps back

   - Privatisation grinds
     to a halt

Telecommunications
   - Public good and
     private interest

   - Convergence
     is at hand

   - Bargain-hunters'
     delight

Tourism & Aviation
   - More challenges
     lie ahead

   - Dogfight in
     the open skies

Health Care
   - Dual-track system
   - Insurance
     industry adapts

Human Resources
   - Back to the classroom
   - Some signs of progress
   - Joining the ranks
     of the unemployable?

Retailing
   - Enter the giants
   - Surviving the onslaught
Media & Entertainment
   - So much for reform
   - Lights, camera...
     inaction

   - Advertising thriveing


HUMAN RESOURCES

Back to the classroom

The nation's future depends on the next generation of Thai workers, but are they being prepared properly by the education system for what lies ahead?

By SOMPORN THAPANACHAI

Globalisation, China's entry into the World Trade Organisation as well as the government's stated ambition to make Thailand a regional hub of just about everything under the sun, have forced the country to take a long, hard look at its ability to compete with its neighbours in attracting foreign investment.

While human resources have always been identified as a significant factor in plans for national development, ask any foreign CEO, and he or she will say that Thailand needs to develop its workers in order to prepare the entire economy for sustainable growth.

The Chuan Leekpai administration included the issue in the country's eighth National Economic and Social Development Plan, which was implemented from 1997-2001.

It also enacted the 1999 National Education Law aimed at overhauling the system _ which brought the term "education reform" into the arena of public debate _ but that government was replaced before it could evaluate the success or failure of its own initiatives.

The current administration led by Prime Minister Thaksin Shinawatra has put its own stamp on the cause of education reform. Conflicts with the old policies have arisen, but this government seems to realise that the greatest weakness of the Thai education system is its lack of market-driven training policies. In other words, graduates are churned out regardless of whether there might be employment opportunities for them.

Policies aimed at matching demand in private sector labour markets with supply from schools, colleges and universities have been introduced. But since most programmes run from two to four years, it is unlikely that in the short-term at least, co-operation between the public and private sectors could exist on a scale large enough to train any significant number of the army of new graduates equipped with the modern, up-to-date skills urgently required by Thai industry.

Although the intent of the policy is clear, government action was painfully slow in this area _ unlike its record in other areas of economic importance. In March 2003, after almost a year of delays, the National Economic and Social Development Board (NESDB) launched an action plan for developing the nation's workforce.

Dr Adisai has pushed for more admissions to vocational schools to prevent a potential shortage of skilled workers.

The NESDB framework, which takes into account Thailand's goal of becoming a knowledge-based economy, uses a demand-driven approach to pinpointing human resources needs in 12 target industries, then matches them with existing and future supply.

Specified sectors include automobile manufacturing, fashion, food, software, tourism, jewellery, wooden furniture, rubber, ceramics, electrical and electronic goods. Mould-and-die making, petrochemicals and steel are classified as supporting industries.

So far, studies have been concluded for only two industries: software and jewellery, where it was discovered that there was a need for 70,000 and 100,000 workers respectively within the next five years.

In the software sector, up to 40,000 programmers would be needed. In jewellery, current training facilities are capable of meeting only 10% of the estimated future demand.

Dr Janjira Wongkhomthong, president of the Association of Private Higher Education Institutions of Thailand, the 49 members of which supply approximately 40,000 graduates to the job market annually, said that the process had been too slow.

She believes that in the span of a year, the board should have been able to identify the workforce demands for all 12 specified industries.

"There is a plan but its implementation is very slow. Besides the private sector, the NESDB should bring in government agencies and state enterprises to help identify which qualifications will be needed 10 years from now and then work with schools to produce them," she said.

Private educational institutes have already moved ahead of their public counterparts by joining into partnerships with the business sector, members of the Thai Chamber of Commerce and the Federation of Thai industries, to offer practical professional courses in which students are trained according to the requirements of the real world.

Overall, Thailand still has a shortage of science-based professionals, ranging from engineers and chemists to computer specialists, but the education system has not kept pace with the skyrocketing need for graduates in these fields, dictated by the needs of a rapidly evolving economy.

That vocational training would be a key factor for the nation's economic development was stipulated in the Thai Rak Thai Party's educational policy platform. Promises, however, are one thing, and implementation another.

One bright spot came earlier this year when Education Minister Adisai Bodharamik ordered the 412 state-run vocational schools nationwide to admit 180,000 first-year students, an increase of 25,000 over past years.

Fears have been raised regarding the potential shortage of skilled workers in the future, as the number of vocational school students amounts to only 40% of the total signing up for post-secondary education. The remaining students in the post-secondary system are enrolling in university programmes, which may or may not offer training currently in demand by employers.

The ministry also desires curriculum improvements, with vocational schools being urged to piggy-back an entrepreneurial skills course onto programmes at all levels to make graduates confident enough to run their own businesses.

Dr Janjira also suggested that the government do more to implement its own policy, by beefing up budgets for research and development at public universities to strengthen their scientific faculties, as well as earmarking more money for vocational schools to procure modern equipment and up-to-date machines to allow a level of skills training relevant to the world of work.

Wilaiporn Liwgasemsan, the deputy secretary-general of the NESDB, said the snail's pace of education reform had forced the board to place more emphasis on improving higher and vocational education. Implementation will take some time however, as the board is just in the process of brainstorming.

"A survey showed that 60% of those graduating from vocational schools still need extra training once they are hired because the schools can't provide enough relevant skills for them to meet most current job descriptions," she said.

The government's effort to inspire more innovative thinking and creativity in the nation's population has been backed by a 10-billion-baht budget.

The Office of Knowledge Management and Development, administered by the Prime Minister's Office, has been charged with establishing a new national museum, a national design centre, a national library/learning centre and institutes for gifted-children, talent-development and life sciences. All projects are to be completed within five years.

To serve Thais outside the educational system, a system of informal training centres is to be established that would allow ordinary working people a channel to upgrade their skills.

Thailand's policies for developing its human resources are clearly on the right track.

However, good ideas are often delayed or lost altogether in the current bureaucratic maze that impedes progress.

Having the right policies will mean nothing if they are not translated into concrete action. Without them, the kingdom risks falling behind other emerging economies in the arena of international competitiveness.


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