The views expressed in this paper are the views of the author and do not necessarily reflect the

views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank
(ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the
accuracy of the data included in this paper and accepts no responsibility for any consequences
of their use. Terminology used may not necessarily be consistent with ADB official terms.



Thailand Country Report on
Skill Development in the post crisis context
By
Mr. Nakorn Silpa-Archa
Director General of Department of Skill Development
For ADB Post-Crisis Development Strategies Conferences

1. Skill Development for Global Economy and against its negative impacts (crisis)

1.1 For Thailand, globalization brings in positive and negative impacts; the former
helps stimulating economy, creating employment and new business opportunities.
In overall they create economic growth and prosperities. The latter could lead to
various uncertainties, vulnerable economy and risks against underemployment or
unemployment if preparations are inadequate or unable to mitigate the impacts or
challenges.
1.2 Social impacts are common among countries with inadequate preparations. The
predominant incidents that usually take place are constant poverty, under and
unemployment, the erosion of employment securities, the brain drain, the damages
of environments and the abuse of vulnerable group of labour such as child labour,
ethnic minority, women and aging labour.
1.3 Human resource development, especially, the quality of education, quality of skill
training, and lifelong learning are vital to every country including Thailand,

because they are foundation for creation of opportunities for all women and men to
obtain productive and decent work in condition of free choice of employment, job
security, equity and human dignity. Skill development, therefore, is the integral and
indispensable for the decent work.
1.4 New trends of current skill development today must be able to equip learners or
working people to realize the importance of constant training and learning since
technology changes rapidly and products are short life. New trends of skill
development must also ensure employability which means the ability of learners or
workers to apply new technologies, enhance enterprise productivities and
competitiveness.
1.5 New skill development must also equip learners with knowledge, core skill,
working skill that they can take advantage of the emerging opportunities. Overall
new skill development must make labour market operate sound and better, they
must narrow the gap of required skill shortages, supply labour to the places where
they are demanded, enhance and improve productivity so that the costs are more
competitive.
1.6 But improvement of education and skill development alone are not sufficient. To
make the whole system move smoothly, they are needed to form part of integrated
policies directed at sustainable economic and employment growth.
1.7 Furthermore, the new skill development must be able to narrow the gap of uneven
share of prosperity. They must be part of the social inclusive polices. They must
equip people to be ready and realize of importance of environmentally friendly
atmosphere.

2. Pressures pushing Thailand to adapt new skill development
2.1 Thailand like other countries has little choice to run away from global economy. In
fact, the commitment within ASEAN makes Thailand more eager to response
challenges and changes that are imminent. The AEC (ASEAN Economic
Community) will be fully effective in 2015; the AEC clearly indicates the full
implementation of 5 areas of integration namely, the free flow of capital, free flow

of investment, free flow of financial, free flow of services and free flow of skill
labour.
2.2 The demographic changes in Thailand will make us less competitive since our
labour force growth is declining and the aging population is increasing. We no
longer take advantage from our demographic dividend. Most of all our existing
labour force is indeed in need of upgrade skill training so as to narrow the gap of
skill shortages.
2.3 There has been the sizeable labour force in the agriculture and informal sectors and
in many cases these sectors could not absorb the retrenched workers who are
terminated due to the uncertain economic fluctuation. It is, therefore, imperative
for the country to upgrade the working force of these two sectors so that they can
increase output and productivity.
2.4 Poverty in Thailand is declining, but it is still our persistent problems. Thailand
like other countries is facing uneven distribution of income. To ease the problems,
working people must be given training and constant learning, in particular, the
learning on issues that influence their earning, or increasing of their income.
2.5 Unemployment in Thailand is usually low and uninterrupted by the crisis (except
the crisis of 1997) this is due to nearly full employment that has last for many
decades. However, the situation on employment is now changing. The
unprecedented financial crisis in 1997 and 1998 was the important case study, the
seizable number of workers was massively laid off and it took some years before
the recoveries. The distress and discouragement among retrenched workers were
huge and caused us to make institutional reform and rethinking of social impacts.
Now the impacts of unemployment are reiterated and cannot be underestimated.
2.6 The main issue and problems that informal and agriculture sector are facing today is
not just temporary unemployment but more important it is also the under
employment. The farmers usually are free during the slack season, so is the urban
poor who earn their living through causal jobs and depend on availabilities of job
offered. All these labour usually are less protected and are not fully covered by the
formal social securities schemes. It is therefore an imperative that skill development
be accessed to people with special needs, such as women, low-skilled labour,
_
persons with disability, older workers and SMEs workers. This skill development
must extend to both urban and rural sector including self-employed persons.

3. Existing Skill Development Programs, how well do they response to rebalancing
growth
3.1 Thailands skill development is formulated and implemented both by public and
private sector. Among the public sectors, there have been 2 main Ministries
(Ministry of Education and Ministry of Labour) that are in charge of skill
development. The former is responsible for formal vocational educations, the latter
is responsible for pre-employment training (in particular, for those left school and
required basic trade skills) and the upgrade training for those already in the labour
market.
3.2 So long as the Ministry of Labour is concerned, the skill development is
implemented by the Department of Skill Development. Department of Skill
Development operates skill training across the countries. It covers at least 3 areas
of performing. The pre-employment training (with varieties of trade-and skills
offered). The upgrade training and the setting up of skill standard and testing. The
Department of Skill Development has been conducting skill trainings for many
decades. They have experienced and learned a lot regarding the management and
conducting of skill development. A lot have been proposed with regard to the
improvement of training policies and the recommendations on ways and approaches
of learning.
3.3 Regarding the ability to equip people or learners to response to changes. It is
unfortunate to mention here that there have been a lot to be done in respect of
quality of training. J ust to give some examples.

First, we realize and are aware that training and skill learning must direct
to market or demand driven. This area needed to be improved since some trades
are still influenced by supply side or requirements of learners. This incident
takes place because many young people are not convinced by career counselor
who tries to elaborate the career paths and prospects. The young men tend to

follow their colleagues on what careers or trade to be learned instead of learning
on trades that are increasingly required. As a result, a lot of graduates find it
difficult to get a job.
Second, the enterprises demand for labour is changing, they prefer
persons with multi-skills or skill mixes rather than the one with specialization in
one skill area. The reasons are simple enterprise needs more flexible person
who can adapt to rapid changing. In this respect, we need to see the Department
of Skill Development putting more efforts and reinforcements regarding the
curriculum developments and the subjects chosen for learning. However, we
have seen more attentions among parents and learners who realize the needs to
learn core skills such as IT skills, communication skills, and etc. In fact, the
learners learn this from experiences once they apply for jobs and are rejected
because they are not in command of language skills, etc.
Third, the teaching and learning approach which focus on learners self
learning, or constant self-learning which is the beginning of concept of life long
learning are still not practicing widely. This issue may take time since
instructors and learners are not familiar with approaches. In fact, the availability
of learning equipments are also crucial, if the demand for equipment is high, the
access becomes the problem.
Fourth, the tradition of skill learning base on the belief and the fact that it
is easier for young people to apply for job and get job since they are in high
demand but to get job and hold or retain job permanently is different. The
young people are trained to get job but not to retain jobs. This is the concept of
employability which currently becomes the common agenda for skill
development. Working people must be aware that skill that one belongs is short
life and can be changed once the technology changed. It is a puzzle that this
issue becomes the attention of employer rather than employees since employer
worries about the change of products and the loss of order if workers are not
capable or unable to perform new pattern of job.

:
3.4 It is acceptable that regional integration provokes the enthusiastic for skill
development changes and it is an emerging issue now in Thailand. In this regard,
Thailand will suffer most since it is in short of labour supply. Those young talent
and skilled labour may move around domestically or oversea and can cause severe
damages domestically if supplies of skill labour cannot be met.

Currently, some trade or careers qualification for skilled labour have been jointly
discussed among ASEAN members. The main area of careers discussed includes
Doctor of Medicine, Dentist, Accountant, Engineer, Nurse and etc. These areas
normally create less and less problems since working people in this field are
professional and have their own organization to protect their interest and control of
career performance. What remain the problems untouched are those areas not covered
or agreed among ASEAN countries such as electricians, mechanics, and these migrants
are working without proper regulations or standard qualification set to justify their
performance.

It is important to note that the problems of migrants are rising and they need
protections. In fact, the policies on migrants must be clear and transparent; it should
benefit both the migrant and the host countries.

For host countries, the presence of migrant should not be regarded as cheap
labour as it will discourage the potential of host countries to upgrade the skill of labour
or introduce innovation and technologies. In the long run, the remain of too many
unskilled and cheap migrant may create the negative impacts on industrial development.

For migrants, they should be given training and learn know-how. This will help
them pursue and develop their career once they return home.

For the regional benefits, skill training and development must gear towards for
all, men and women so that they can pursue better life no matter where they stay or
work.
l

3.5 With regard to informal sector, this is the issue which reminds our attention that
from now on the issue cannot be underestimated. In Thailand, informal sector
accounts for the seizable number of labour (approximate 24 millions); it has so far
absorb the retrenched workers and domestic migrants who have little opportunities
to get decent jobs. Informal sector thus account for 60% of the total labour force.
Until the present day, this sector is still struggling for improvement, usually; the
sector is less protected and not fully covered by formal social security schemes.

Our ultimate goal is to gradually upgrade and convert the sector into formal one.
The belief that this sector is the first step for beginner who starts conducting
business is feasible. In fact, they need training, skill upgrading and access to
management skill learning. The equal importance in this sector is the training
given to workers who due to the small size of business and the undocumented
management are neglected or ignored. They in fact are excluded from the
prosperities and growth brought in by global economy and integration.

3.6 Informal sector has become our target groups for any measures rendered for crisis
relief. This is because people in this sector suffered most from the impacts of
financial crisis. The recent crisis (2008-2009) in Thailand reinforced this. The
measures such as provision of honorarium of 2,000 Baht (65 US$) for the low
income workers, the bus free services, the exemption of excise tax for some
necessary goods items, the provision of monthly cash for aging people and persons
with disability and the 30 Baht (less than one US$) medical services were all
programs set up for the poor and low income labour.
3.7 When the recent financial crisis took place (2008-2009), the current government has
launched the simulating packages so as to induce spending Tol Kra Archeep
Projects were introduced and implemented across country. It aims to equip
retrenched workers and underemployed persons with careers chosen by participants.
Each program lasted 20-30 days and honorarium was given to participants. It was
found that majority of participants were from informal sector.


For regular activities carried out by the Department of Skill Development,
there are various programs of training open to public and they receive attention widely.
The programs are designed for all people and it is found that majority of learners are
from informal sector. Some are self employed and some engage in casual work or part
time job. The trade and career trainings are supplementing instruments which people
can make use of them by applying or extending their regular business activities so as to
earn extra income.

So far, this activities serve our purpose in assisting people with low income or
irregular wage earners.

3.8 With regard to public-private partnerships (PPP), we are glad to inform that the skill
development today has put more efforts to involve enterprise into the training
schemes. The Labour Skill Development Act 2002 has provided tax incentives and
other related benefits for enterprise which conduct or supporting trainings for their
own workers. The scheme is compulsory for enterprise with more than 100
workers to comply under this program whereas the enterprise with less than 100
workers, the scheme is voluntary, but if they do provide training they are also
entitled for tax incentives.
3.9 The introduction of PPP scheme is simple as we understand that the public could
not afford the state of the art equipments and tools, furthermore, it is the enterprise
who know what, when, why and how to train their own workers. They can even
conduct training within the workplace where workers are all around and convenient
for entering training at any time. So far enterprises could provide training for over
1 million workers a year. In regard to how well the PPP response to labour market
mechanism. We are glad to mention here that PPP is our priority, it really serve the
objectives of both public and private organizations. The enterprise are satisfied
with the context which they can monitor or dictate the directions. Workers are
happy for participation; the public is rethinking for extending the programs.

3.10 SMEs are the products of global economy; outsourcing and relocation as well as
sub-contracting and supplies chain are all involved with SMEs. In fact, SMEs
employ a lot of workers. The Department of Skill Development currently is
associated with the Industrial Federation of Thailand to launch the programs of
training in the provinces where SMEs are predominant.

The issue here is how well and how far SMEs have involved or reacted toward
the training. This is the issue that needed further debate. SMEs usually cannot afford to
set up or conduct full scale trainings. They need support and back up. This is why the
Department of Skill Development involves with the Industrial Federation and put more
efforts to help them.

Another issue is the belief that once workers are trained, they leave and this is
the persistent negative perception. The point is enterprise should do more with regard to
personal management. The workers with skill or who are talent should be considered to
have roles to play. This is the parallel issue that needed to be included when conduct
training for enterprise.

3.11 With regard to green jobs, this is important and need careful involvement and they
must be done with vigour. A lot of enterprise and workers are not familiar with the
concept and do not know how good it is. Green jobs mean sustainable business and
employment. This idea must work closely with the Industrial Federation and the
Chamber of Commerce in Thailand as they are the first to feel the impacts. The
industrialists know well that there has been movements and development among
importers to set rules for green jobs and green products. Knowing and reacting
inadvance will benefit all. It is also puzzle in Thailand where green issues are
widely discussed and debated among civil societies, many program and projects are
successful such as the prohibition of smoking in public place, organic food products
are widely recognized and popular among the middle class citizen. The introduction
of sufficient economy is also acceptable among organized communities in some
areas.
.
3.12With regard to skill development in green jobs, we currently need support and
recommendations from any organizations or countries with successful programs.
We, the Department of Skill Development, fully agree that sustainability in
development is our ultimate goal so long as employability is concerned.




4. Lessons Learned and how can skills development policies re-designed to better
respond to local conditions and changed

4.1 Skill development is the foundation for sustainable employability. It also increases
individual competencies and enterprise productivity and competitiveness. Women
and men nowadays need broad based skills that they can adapt to rapid changes.
Sound policies and constant implementation of training and learning also become
the vital mechanism to offset the negative impacts of global economy while well-
equip people with quality knowledge and skills will also take advantage of
emerging opportunity. Ultimately, we will see labour market function well.
4.2 We also learn that our existing skill development system needed to be improved
and enhanced. Curriculum must be re-designed, learning methods and approaches
needed to be developed so that learners really learn and be able to do jobs well,
instructors or coachers must be re-trained too.
4.3 What we are trying hard is to change the perception of learners. They must be
equipped with notion that training is not just for getting job but retain and
developing jobs. In the era of global dynamic economy, technologies change fast
and products are short life. Working people must be dynamic and keep on learning.
In this regard, we should start with re-design of curriculum and the introduction of
new learning methods (CBT, Competency based training is one way to improve
competencies of learners).
4.4 Training and Skill development must gear towards market requirements. This is
another area which we are putting more investments as we cannot afford to see
..
young graduate find it difficult to get jobs or take longer time to get job or even are
underemployed.
4.5 Re-design and reform of learning approaches are our target plans. Learning must
be designed to motivate learners and provide room for focus on learners not
instructors Learner centered approach should be our goal, this requires well-planned
process and assessment. In this regard, quality must come first.
4.6 Employability is the new concept we are approaching now. Learners must be
dynamic and equip themselves with potential in response to changes. Learners
must be equipped with notion of challenging and broad based knowledge. Self-
employment is one alternative where learners will be encourages to challenge.
4.7 With regard to re-design of skill development policies the Department of Skill
Development is clear in our notion. The followings are our goals for skill
development policies.
1. Develop supportive social policies so as to balance growth. Human capital
must be our invaluable asset.
2. Encourage enterprise to invest and support skill development and training for
their own workers.
3. Involvement of social partners for skill development and policies setting at
national, local, sectors and enterprise levels.
4. Develop and enhance dynamic national qualification system and framework
so as to facilitate lifelong learning and help enterprises to do their parts.
Recognizing of prior and previous acquired skills, competencies and
experiences of individual by recognizing local differences.
5. Promotion of equal opportunities for women and men in education, skill
development and life long learning.
6. Promotion of access to training and skill development for persons with
disability or persons with special needs both in urban and rural areas and self
employed persons.
7. Maintain and improve coordinate training and skill development system
within the framework of learning and recognizing of social partners for
further training.
.
8. Promotion of skill development framework that include core skills such as
literacy and numeric skills and appropriate use of IT.
9. Promotion of standard and benchmarks for skill qualification in relation to
comparable countries and sectors so as to supplement the free flow of skill
labour in the future.

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