Deep and disruptive impacts are coming to the employment market as new technologies perform human tasks, and government will need to implement measures to prepare younger generations to cope with what is rapidly approaching, experts said.

Artificial intelligence (AI) is already making headway in performing tasks once considered out of their reach and solely in the realm of robots in science fiction. Thus, there’s a need for the government to reinvent the labour market to ensure future jobs, said Nuthasid Rukkiatwong, a researcher from Thailand Development Research Institute (TDRI).

He was speaking at a recent seminar titled “Thailand Moves Forward with AI Technology” at the National Electronics and Computer Technology Centre’s (Nectec) annual conference and exhibition.

According to Nuthasid’s research on AI, there are now 8.2 million Thais working in high-risk occupations, or jobs where the estimated likelihood of them being replaced by AI is over 70 per cent.

The research found that more than half of workers at high risk of losing their jobs from technological disruption have both low education and low income.

They include retail salespeople, clerks, drivers, machine operators and manufacturing assembly workers.

Some professionals, including lawyers, underwriters and radiologists, are also at risk of losing their jobs from technological disruption, he said.

The researcher said that while in some cases it might make sense for the government to take direct action in reskilling its workforce, such as providing training courses, the modern economy is too complicated for such an initiative to be feasible on a large scale.

He suggested instead that reskilling be accelerated by promoting the competitive training market.

“Such a measure includes, but is not limited to, grants and subsidies for private training providers, a training cost subsidy for workers, and a comprehensive information system for training courses,” Nuthasid said.

These measures have been implemented abroad and the regime would be wise to imitate them, he added.

“Any failure to do so would diminish the competitiveness of our nation, thereby reducing growth and prosperity, while at the same time threatening social cohesion by dividing people into those who can take advantage of AI and automation technologies, and those who can’t,” he added.

Coming revolution

AI has played a major role in market and would absolutely revolutionise Thailand, the seminar agreed in consensus.

One of the figures supporting that contention was found in research from KPMG, a professional service company. They found venture capital investment into AI and machine learning (ML) had doubled to $12 billion (Bt388 billion) in 2017 from $6 billion in 2016, said Panachit Kittipanya-ngam, president of Thailand Tech Start-up Association.

He also cited a forecast from Tractica, a market intelligence firm, that annual worldwide AI revenue would grow from $643.7 million in 2016 to $36.8 billion by 2025.

“AI will absolutely revolutionise Thailand and the shape of employment will change. So, if we fail to develop human resources we may lose the opportunity to foreign workforces,” he emphasised.

The seminar speakers sought answers for how the Kingdom could adapt itself to stay above the wave of disruption, along with defining the characteristics, skill sets and attitudes young Thais will need to cope with the trend.

Thanaruk Theeramunkong, president of Artificial Intelligence Association of Thailand, said he believes AI will overtake humans in 50 to 60 years and so educational authorities should design textbook to teach children about the technology.

Future learning process should also transform the roles of teachers and students, he advised.

“Due to the [technology] disruption, students may not need to learn from teachers. The latter will change their role from teaching to guiding,” said Thanaruk, who is also a lecturer at Sirindhorn International Institute of Technology at Thammasat University.

Chai Wutiwiwatchai, director of Human Computer Communication Research Unit, Nectec, argued for the country making big changes to enable adaptation to the coming age of AI.

“The next generation of Thais should be socialised as people who can think, are hands on and rely on themselves,” he said. In the past, they could be advanced thinkers but were unable to implement their ideas due to a lack of hands-on skills, the director added.

Surawut Pornthabthong, a solutions architect at Thailand Amazon Web Services, built on Chai’s suggestion. “We should try to differentiate the next generation, create them to each have their individual value, and to be unique, so they don’t have to compete in the same market,” he said.

“That could be their way to survive.”

China would overtake US as the leading blockchain developer within three to five years.

Trust, regulatory uncertainty were identified as the biggest barriers to business adoption by 84 per cent of the executives surveyed.

The PwC research titled “Blockchain is here. What’s your next move?” surveyed 600 executives in 15 countries and territories, on their countries’ development of blockchain and views on its potential.

The US (29 per cent), China (18 per cent), Australia (7 per cent) are perceived as the most advanced currently in developing blockchain projects. However within three to five years, respondents believe China will have overtaken the US (30 per cent), shifting the early centre of influence and activity from the US and Europe.

The survey reflects the early dominance of financial services developments in blockchain with 46 per cent identifying it as the leading sector currently and 41 per cent in near term (3-5 years). Sectors identified by respondents with emerging potential within 3-5 years include energy and utilities (14 per cent), healthcare (14 per cent) and industrial manufacturing (12 per cent).

“What business executives tell us is that no-one wants to be left behind by blockchain, even if at this early stage of its development, concerns on trust and regulation remain,” comments Steve Davies, Blockchain Leader, PwC.

 In 2017, Thai-Vietnamese bilateral trade stood at US$16 billion in total value. Of which, Thailand exported up to US$11 billion worth of products to the country while Vietnam exported US$5 billion to Thailand, said Sanan, who is also chairman of Srithai Superware Plc.

Thailand benefits a lot from trading with Vietnam but Vietnam also gains from importing goods from Thailand as most of the Thai exports are capital goods, he explains. Hence, Thai exports help push the development of the manufacturing industry in Vietnam, he says.

The bilateral trade value between Thailand and Vietnam amounted to US$12 billion from January to August this year, growing 14.9 per cent from the same period last year, according to the Thai-Vietnam Business Council. Some of the key Thai investors in Vietnam are Thai BEV, Central Group and SCG.

The Thai-Vietnam Business Council represents private enterprises in Thailand that are trading or investing in Vietnam.

“Our partner is the Vietnam-Thai Business Council, our counterpart in Vietnam. Through sharing networks, information and know-how, we aim to promote investment and trade between Thailand and Vietnam,” Sanan says.

“We have up to 500 entrepreneurs in our network who are trading or investing in Vietnam 90 per cent of which are successful,” he says.

The Thai-Vietnam Business Council works to demonstrate to the Vietnam side that Thai entrepreneurs are strategic partners who can improve the manufacturing industry and infrastructure of Vietnam as opposed to aggressive competitors who are looking to dominate the Vietnamese market, Sanan explains.

The most challenging issue facing Thai exports is the introduction of trade barrier on automobile parts by the Vietnamese government, says Sanan.

This is because Vietnam is going to launch its own nationally-produced car brand called ‘VINFAST’.

“Hence, it has introduced non-tariff barriers against exporters of automotive parts which makes up a significant amount of Thai exports to Vietnam,” says Sanan.

“The Thai-Vietnam Business Council along with the Ministry of Commerce have cooperated in negotiating with the Vietnamese government to reduce these trade barriers,” Sanan continues.

“The negotiation is currently in progress, and Thailand aims to establish a certified body to test the cars and automotive parts in Thailand and sidestep the trade barrier,” he says.

Another initiative to boost exports to Vietnam and encourage Thai small and medium-sized enterprises (SMEs) to trade and invest in the neighbouring country is through a ‘Mentorship Programme’ which will be launched in 2019. This programme will bring together entrepreneurs who have both failed and succeeded in trading and investing profitably in Vietnam as well as prospective entrepreneurs who are interested in the Vietnamese market.

The mentors will then give constructive advice and access the readiness of their mentees to trade and invest in Vietnam. Sanan expects this programme to be more successful than past business matching events, which he says has not produced very impressive results.

 Under the planned regulation, to be implemented in November, these financial institutions must charge a fixed rate on the loan plus fee of no more than 28 per cent per annum. The minimum registered capital of these lenders must be no less than Bt50 million.

The move came after allegations of misconduct among some of the more than 1,000 financial institutions involved, such as unfair loan contracts, hidden fees, no channel for complaints and high interest rate.

More than 3 million customers use this lending service nationwide or about Bt200 billion in the outstanding loan, Daranee Saeju, BOT senior director, said.

The central bank is now conducting a public hearing among consumers and business operators on theloan regulation, she added.

Prapas Kong-ied, Sepo director-general, said TFF sets free float at no less than 60 per cent, using small lot first as its subscription method.

The fund’s initial public offering units are set at Bt10 apiece with the subscription period being October 13-16. Institutional investors will be able to subscribe TFF units from October 20.

 After a discussion with USTR representative Lewis Karesh, Boonyarit said that Thailand may amend its labour law to be in compliance US law and open the market for pork imports from the United States.