COVER STORY • 5

Thai Industrial Policies
Towards the Challengesof an Aging Society

By Morragotwong Phumplab

Introduction
Since 2005, Thai society has experienced a notable demographic
shift characterized by the emergence of an aging society. This term
refers to a societal condition wherein the proportion of individuals
aged 60 years and above reaches or exceeds 10% of the overall
population. Furthermore, Thailand is anticipated to become theworld’s first developing nation to transition to a completely aging
society. Currently, Thailand is experiencing a complete transition into
an aging society. Both governmental and non-governmental entities
have initiated efforts to prioritize and raise awareness about theofficial transition to an aging society in Thailand, in response to thechallenges posed by this demographic shift.
The Ministry of Social Development and Human Security, theMinistry of Public Health, and the Ministry of Labor have
implemented a range of programs aimed at providing support for an
aging population. Nevertheless, the multifaceted social landscapeincluding political, economic, and social dynamics during the past
approximately 20 years has exerted a discernible influence on thestrategies employed to address the challenges posed by Thailand’s
aging population. Thailand is primarily recognized as a favoreddestination for elderly individuals from outside who seek care fromThai elderly-oriented enterprises. However, uncertainties persist overthe forthcoming trajectory of Thailand’s senior citizen population,with indications pointing towards a probable increase in numbers.
Thailand’s progression into a fully-fledged aging society has been
notably swift when compared to many of its ASEAN counterparts.
Despite the broader ASEAN region undergoing a transformation into
an aging society due to the presence of more than seven countries
with large populations exceeding 60 years of age, Thailand stands
out as experiencing the most profound changes in the region. Both
Thailand and Singapore have successfully made the transition into
complete aging societies, characterized by a demographic
composition where individuals aged 60 and above constitute morethan 20% of the total population.1 Moreover, there is a compelling
projection that Thailand will reach the status of a super-aged societyby the year 2031, with the proportion of individuals aged 60 andabove surging to 28% of the total population.2, 3
A noteworthy aspect of Thailand’s demographic transition is the
rapidity of the process. To put it succinctly, the journey towards
entering an aging society is being accomplished in less than two
decades. This accelerated transition can be attributed to several
28 Japan SPOTLIGHT • November / December 2023

AuthorMorragotwong Phumplab

pivotal factors, chief among them being the enhancement ofhealthcare infrastructure, which has significantly extended the life
expectancy of the Thai populace. Additionally, the persistent decline
in the birth rate, with an annual birthrate of approximately 600,000
individuals, has contributed significantly to the substantial growth ofthe elderly population.4
This article will delve into three primary aspects: the status of
Thailand’s aging society, governmental preparatory policies aimed ataddressing it, and the challenges and impediments associated withan aging workforce, particularly within the industrial sector.
Thailand’s transition into a fully aging society has substantial
ramifications for the labor market. As the working-age population
decreases, the imperative to import foreign labor becomesincreasingly pronounced. This is especially crucial given Thailand’shigh dependence on labor to drive its economy. Failing to importforeign workers could potentially hinder the nation’s economic
growth trajectory. Crucially, this underscores the need for bothpublic and private sectors to adapt proactively to the evolving
dynamics of an aging population in Thailand, set against the
backdrop of swiftly transforming societal paradigms.

Thailand’s Transition Towards a Complete Aged
Society
In 2022, Thailand officially transitioned into a Complete Aged
Society. Data sourced from the National Statistical Office revealed
that in the same year Thailand’s elderly population comprised
12,116,199 individuals aged 60 and above, constituting 18.3%5 of
the total population of 66,090,475.6 The data indicates that Thailand
is on track to become a Super Aged Society by 2031, with apredicted elderly population surpassing 28%. The limited timeframeof less than a decade from the present underscores the urgency of
preparations across various domains, with a particular emphasis on
the labor market and the provision of diverse welfare benefits. These
aspects represent formidable challenges for government agencies
tasked with managing the evolving demographic landscape as
Thailand undergoes a profound transition into a long-term aging
society.
Furthermore, as of 2023 there is a compelling estimation that
Thailand may accelerate its entry into a Super Aged Society by ayear, primarily due to a notable population decline since 2020. This
demographic shift is marked by a declining birth rate of 0.76% and ahttps://www.jef.or.jp/journal/

reproductive rate of only 1.33%.7 The aforementioned statistics
indicate an ongoing decrease in population, especially whencompared to the Baby Boomer generation, a cohort characterized bya continually increasing number of individuals transitioning into theelderly demographic.
The challenge confronting the Thai government lies in thecomplexity of boosting birth rates and fertility rates. This endeavor
encounters hurdles stemming from the values and lifestyles
embraced by the upcoming generation, which prioritizes career
success and economic stability ahead of family planning, particularly
with regard to having children. Furthermore, the prevailing social
conditions, economic uncertainties, and political instability
contribute to a climate where the working-age population,
particularly Generation Y and Generation Z, who will assume pivotal
roles in Thailand’s workforce in the coming years, find themselvescompelled to prioritize their individual pursuits. Notably, they grapple
with the specter of income insecurity, characterized by meager
earnings in an era marked by soaring living costs. Additionally,heightened concerns pervade the political landscape, infrastructural
deficiencies, and prevailing social conditions. These concerns
encompass unforeseen circumstances, such as emergent security
challenges like the Covid-19 pandemic and ecological disasters
arising from the global environmental crisis. Collectively, these
multifaceted factors reshape the outlook for the new generation
concerning family formation and child-rearing. The cumulative
impact of these variables strongly suggests a future where an
increasing proportion of older individuals may find themselves living
in isolation.
The necessity to tackle the difficulties of changing population
demographics is of utmost importance, encompassing not just the
government sector but also the private and business sectors. The
effort to adequately prepare for and handle the intricate challenges
posed by a rapidly aging population ought to go beyond temporaryconsiderations and be recognized as a long-lasting national priority,
based on sustainable resolutions. Therefore, this matter arises as a
crucial obstacle for the incoming administration, necessitating
prompt action. Its significance is underscored by its intricate
interplay with the overarching economic trajectory and the futurecompetitive standing of the nation.

The Thai Government & Aging Society Policy
For nations transitioning into an aging society, the foremost
challenge that necessitates preparation is the prospective dwindlingof the workforce, ultimately culminating in a shortage of labor. The
World Health Organization (WHO) has advocated critical attributes
that need to be cultivated to effectively adapt to the burgeoning aging

demographic. These include the promotion of overall well-being androbust health, and the establishment of security and stability in the
lives of the elderly populace. Additionally, a pivotal aspect entails theintegration of the elderly into the labor force, affording them
opportunities for meaningful employment.1 This initiative represents
a strategic measure not only to empower them but also to alleviate
the burden of reliance on government welfare programs.
Numerous countries across the globe formulate and implement
policies with the aim of effectively managing and enhancing
employment opportunities for the elderly. Many nations recognize
the aged as a demographic possessing great talents and untapped
potential that can make significant contributions to societal
advancement. Certain locations are implementing strategies toencourage the inclusion of older individuals in the workforce. These
measures involve providing tax incentives to private enterprises andextending the retirement age to a range of 65 to 70 years, with theaim of augmenting the labor force by increasing the participation ofolder individuals. Additionally, it encompasses the creation of longterm healthcare facilities specifically designed for the aged
population, with the aim of enhancing their overall quality of life.
For the Thai government, an immediate and pressing concern
revolves around the necessity to overhaul and fortify the
infrastructure, not only in major urban centers but also in rural
provinces, to effectively cater to the needs of an aging population.
The present state of affairs compels us to acknowledge that theexisting infrastructure is ill-prepared to accommodate the exigenciesof the aging society. Furthermore, in the longer-term perspective, thegovernment faces the prospect of diminishing tax revenues owing toa significant reduction in the working-age population. This scenario
could potentially precipitate a fiscal crisis, as the government
grapples with the dual challenge of disbursing increased welfare
payments to the elderly while grappling with lower tax collections. In
light of these multifaceted challenges, the government has taken
proactive measures for the year 2023. A comprehensive integrated
plan, with a budget exceeding 438 million baht (US$12 million), hasbeen devised, with allocations earmarked for the related ministries.
This initiative encompasses a welfare promotion project specificallydesigned to prepare and ensure a high-quality retirement forindividuals within the working-age range of 25 to 59 years.8
In fact, the Thai government has been actively engaged inaddressing the needs of the elderly population since 1982, initiating
its efforts with the implementation of the National Elderly Plan No. 1(1982-2001), followed by No. 2 (2002-2021). These national
strategic plans have been instrumental in delineating the trajectory
for the development and comprehensive care of the elderly acrossthe entire nation. Recent Thai governments have continued tounderscore the significance of policies aimed at enhancing the wellJapan SPOTLIGHT • November / December 2023

29

being of the elderly by incorporating them into the ambit of 20-year
national strategic plans. Additionally, the 12th National Economic andSocial Development Plan places a prominent emphasis on unlocking
the potential of the elderly, with an emphasis on fostering literacy
and technological proficiency among this demographic.9
Furthermore, this plan delineates strategies for the development oftechnology and innovation that cater to the specific needs of theelderly and harness their potential as a driving force for national
development.
The Ministry of Labor initiated a notable effort in March 2019 by
issuing a statement that aimed to facilitate collaboration inpromoting and expanding career prospects for the elderly. Thisentailed seeking cooperation from business establishments willing toengage individuals aged 60 and above in gainful employment. The
stipulations of this effort include a mandate for employers to provide
compensation at a minimum rate of 45 baht per hour ($1.23), alongwith a requirement that the work assigned should not jeopardize thewell-being of the elderly, with a particular emphasis on serviceoriented occupations and local handicrafts, among other suitable
positions.10 Furthermore, government policy extends incentives toestablishments that hire elderly workers, allowing them to deduct
expenses up to twice the amount paid for their employment,
provided that the employment does not account for more than 10%of the total workforce. In addition to these endeavors, there exist
initiatives such as the Civil State Project for the Elderly, whichfacilitates employment opportunities for the elderly, and the “1District 1Wisdom” initiative designed to empower the elderly todevelop themselves and foster independence. However, it isimportant to note that while these projects have made commendable
efforts, they remain relatively limited in scope and have not fully
addressed the overarching structural challenges associated withelderly employment (Chart).
On Sept. 15, 2023, the Minister of Labor, in partnership with theFederation of Thai Industries, issued a noteworthy policy
announcement within the framework of the newly establishedgovernment. The implementation of this policy marked the initiationof automation as a strategy to mitigate the existing scarcity of laborand enhance the expansion of Small and Medium-sized Enterprises(SMEs). In conjunction with the ongoing automation initiative, there
is a coordinated endeavor to augment the proficiency of employees
through upskilling and re-skilling initiatives, with the objective ofenhancing their capabilities to satisfy rigorous industry
benchmarks.11 Moreover, the Ministry of Labor has been considering
the potential expansion of work lengths within specific sectors. Thisidea aligns with a strategic initiative to increase the daily minimum
wage to 400 baht ($11) by the year 2024.8 The government’s diverse
measures exemplify a proactive stance in tackling the intricate issues
arising from labor shortages and enhancing the competitiveness of
the workforce within the ever-changing economic environment.
The year 2023 has been officially designated by the Ministry of
Public Health as the year dedicated to the health and well-being ofsenior citizens in Thailand. Among the myriad governmental
priorities, public health services and comprehensive health support
emerge as paramount concerns demanding immediate attention andpreparation. To underscore the urgency, it’s essential to consider the
dependency rate based on 2017 statistics, revealing that for every

CHART

Statistics of elderly in the labor market in Thailand
Year
2012

2013

2014

2015

2016

2017

2018

2019

2020

Number of elderly

8,170,909

8,734,101

9,110,754

9,455,777

9,802,080

10,225,322

10,666,803

11,136,059

11,633,188

Men

3,625,513

3,871,957

4,036,987

4,188,623

4,340,137

4,524,021

4,715,598

4,920,297

5,132,901

Women

4,545,396

4,862,144

5,073,767

5,267,154

5,461,943

5,701,301

5,951,205

6,215,762

6,500,287

Percent of elderly

12.68%

13.48%

13.99%

14.39%

14.87%

15.45%

16.06%

16.73%

17.58%

Men

11.44%

12.16%

12.62%

12.98%

13.41%

13.94%

14.48%

15.09%

15.85%

Women

13.88%

14.76%

15.32%

15.75%

16.27%

16.91%

17.58%

18.31%

19.23%

Number of elderly working

303,8733,446,045

3,839,312

3,778,222

4,016,984

4,063,076

4,361,331

4,235,680

4,704,477

Men

1,989,235

2,000,786

2,259,744

2,227,162

2,336,719

2,365,606

2,547,354

2,469,866

2,683,732

Women

1,474,638

1,445,259

1,579,568

1,551,060

1,680,265

1,697,470

1,813,977

1,765,814

2,020,745

Percent of elderly working

41.66%

39.46%

42.14%

39.96%

40.98%

39.74%

40.89%

38.04%

40.44%

Men

53.21%

51.67%

55.98%

53.17%

53.84%

52.29%

54.02%

50.20%

52.28%

Women

32.44%

29.72%

31.13%

29.45%

30.76%

29.77%

30.48%

28.41%

31.09%

Source: National Statistical Office 2021

30 Japan SPOTLIGHT • November / December 2023

100 individuals of working age, there are 51 individuals comprising
the elderly and children who rely on them. Projections indicate that
this ratio is set to increase to 64 people by the year 2027.12
Furthermore, insights gleaned from the 2022 Health Data Center
report underscore prevalent health issues among the elderly
population. Notably, chronic illnesses such as cardiovasculardisease, diabetes, and high blood pressure are prevalent, as is thechallenging issue of dementia. Particularly striking is the alarming
statistic that records as many as 1,046 elderly individuals
succumbing to fatal falls, averaging three fatalities per day.13 This
underscores the critical imperative of prioritizing health services andpreventive measures for the elderly in Thailand.
In the midst of 2022, the Thai Cabinet took a significant step byendorsing the “Population Development Draft for the Long-Term
Development of the Country 2022-2037”. This blueprint is centeredon the overarching concept of nurturing the Thai population acrossall age groups with the guiding principle of “Born Well, Live Well, Eat
Well”.14 This comprehensive approach encompasses the aspiration
for individuals to be born into quality circumstances, to lead lives ofquality while actively contributing to national development, andultimately to age and pass on with dignity and quality of life.
Furthermore, this visionary plan encompasses six strategic pillars,
designed to support and address the challenges posed by an aging
society in both the immediate and distant future. These strategies
are:1) Establishing quality family environments and cultivating a
supportive framework for childbearing and child-rearing.
2) Enhancing and optimizing the productivity of the population.
3) Enhancing financial stability.
4) Promoting health and longevity through the reduction ofpremature mortality and the establishment of long-term caresystems, including end-of-life care.
5) Creating conducive living conditions that facilitate quality of life
across all age groups.
6) Managing migration effectively to align with demographic goals
and objectives.
These strategies collectively serve as a comprehensive roadmap toaddress the multifaceted challenges and opportunities associatedwith Thailand’s demographic evolution into an aging society.
Furthermore, the Ministry of Public Health has instituted a policy
aimed at facilitating comprehensive health promotion for the elderly,
fostering their capacity for self-care on an ongoing basis. This
proactive approach seeks to diminish dependency and encourage theadoption of favorable health behaviors among the elderly population.
The overarching objective is to create an environment conducive toelderly-friendly communities that actively promote health and wellbeing. These health-related initiatives are strategically framed as

investments in the long-term, with health issues viewed as costs
that, when addressed effectively, can mitigate the burden of future
public health expenditures. By extension, such efforts have thepotential to alleviate the economic strain on the nation by reducing
the healthcare costs associated with an aging population.

Elderly Tsunami: (Lack of) Economic ReadinessDespite the persistent dialogue surrounding the complexities
associated with an aging population, the economic andadministrative structures exhibit a lack of readiness to effectively
navigate the shift towards a sustainable society that accommodates
the needs of older individuals. The gradual increase in the percentage
of individuals aged 60 and over within the population has resulted ina wide range of economic consequences, such as financial savings.
However, the most urgent issue is the scarcity of individuals within
the working-age population. The aforementioned advancements havesubstantial ramifications for the government’s financial andeconomic obligations in tackling these difficulties. Indeed, aconsiderable number of economic professionals argue that if thesesituations are not handled properly, they could have long-lasting andwide-ranging impacts on the Thai economy.
Moreover, within the business sector in Thailand, a pressing
concern emerges: the desire for growth amid a shrinking workforce.
This predicament is further exacerbated by the inefficiency of aging
workers who struggle to adapt to the rapidly evolving technologicallandscape within their respective industries. In today’s global
landscape, changes in organizational structure and the escalating
costs associated with employment compound these challenges. The
limitations in embracing technology stem from a lack of familiarity
with swiftly evolving innovations. Multiple studies underscore theprevalence of entrepreneurs resorting to early retirement measures
as a means to mitigate the impact of this technological gap.
Addressing this issue is further complicated by the necessity of
upskilling workers, either by updating existing skill sets or acquiring
proficiency in entirely new technologies. From an employer’s
perspective, one potential avenue for resolution involves the
adoption of automation systems and digital technology to supplantreliance on manual labor.11, 15 Some view technology as a means tobolster the productivity of an aging workforce. However, it isregrettable that the state has not accorded this issue the level ofimportance it warrants. The potential consequences of this mistake
may have far-reaching implications for the future expansion ofretirement durations among aged employees in Thailand.

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31

Potential Resolutions for Labor Policy Challenges
in Industrial Sector
Numerous analysts and researchers have put forth proposals to
address the issue at two distinct levels, involving both the public andprivate sectors. On the one hand, it is imperative for the government
to implement measures aimed at incentivizing and encouraging
entrepreneurs to hire elderly workers. Simultaneously, entrepreneurs
themselves must remain adaptable and responsive to shifts in thelabor market dynamics. Central to these efforts is the government’s
readiness to equip older workers with the requisite skills to enable
them to continue working efficiently. Of particular importance is theprovision of opportunities for older workers to undergo re-skillingand upskilling programs, thereby ensuring income security during
their later years.
Research data emanating from the Foundation of Thai Gerontology
Research and Development Institute underscores the efficacy of taxbased measures. Specifically, the government is advised to permit
business establishments to claim deductions equal to twice thewages of workers aged 60 and above who are employed on a fulltime basis. Concerning tax deductions, entrepreneurs should beentitled to request deductions encompassing import duties andcorporate income tax when they introduce technology, machinery, or
automation systems into their operations for a minimum period of
three years.16 These measures hold the potential to incentivize
employers and promote the integration of aging workers into theworkforce, while simultaneously fostering technologicaladvancements in the business sector.

Socioeconomic Disparity Among the Elderly
The substantial income disparity between the affluent and the lessprivileged engenders another category of workers who lack access toadequate savings or are confined to low, or even very low, income
levels. Within this sizable demographic, individuals are compelled tosubsist on daily wages, devoid of the opportunity to contemplate acomfortable life post-retirement. Consequently, this segment of theworkforce finds itself in a precarious situation, necessitating
employment until the very threshold of retirement. Such a
circumstance inevitably exerts a deleterious impact on their overall
quality of life.
This particular group of elderly individuals predominantly resides
in rural areas and confronts a stark reality wherein saving for theirlater years remains an elusive prospect. Many among them arecompelled to engage in manual labor, often in construction or, atbest, resort to daily handicraft activities to secure a meager income
necessary for day-to-day subsistence.17 While the government does
32 Japan SPOTLIGHT • November / December 2023

extend a form of financial support through a living allowance forthese elderly citizens, the sum disbursed is relatively modest,
ranging from only 600 to 1,000 baht (c. $16-28) per month.
Consequently, this governmental subsidy serves as a temporary
respite from hardship but cannot serve as the primary source ofincome to sustain their livelihoods and self-sufficiency.
In light of these circumstances, it is suggested that local
communities can play a pivotal role in providing mutual support byeffectively managing village funds in accordance with government
directives. These funds could serve as a vital lifeline for families
grappling with economic crises. The responsibility is on thegovernmental bodies to not only provide greater care and assistanceto these elderly individuals but also to create avenues for
employment, thereby empowering them to maintain good health andcater to their own needs and responsibilities, including the welfare of
their offspring, without enduring undue hardships.

Conclusion
The necessity of adequately preparing for and efficiently tacklingthe issues presented by a society that is seeing an increase in the
proportion of elderly individuals has gained significant recognition indiverse fields. Nevertheless, achieving a clear and all-encompassing
guidance, especially in relation to operational efficiency, still poses achallenge. There is a growing recognition that it is the responsibilityof the government to establish a favorable setting for meeting therequirements of an aging population, considering their heightenedsusceptibility to dependency in comparison to other demographic
groups. However, notable gaps and obstacles continue to exist.
Income security is a pressing and significant concern in Thailand,
surpassing numerous other issues in terms of its magnitude andurgency. The issue of income inequality continues to be a significant
concern, and despite the Thai government’s active endeavors toaddress it through diverse policies, such as the implementation ofliving allowances, it has become evident that enormous financial
resources are necessary to sustain these measures. In practicalapplication, the assigned resources frequently fail to adequately
cover the real living expenses of the senior demographic. Moreover,
the aged population faces exclusion from government assistanceprograms due to constraints in legal status and limited technologicalaccess, resulting in the denial of their lawful entitlements. The
aforementioned constraints have additionally led to a lack ofadequate representation in official government surveys, intensifying
the problem of fair accessibility to support and resources for theaged population in Thailand.
A prominent challenge confronting Thai society is the notable lackof synergy between the public and private sectors, particularlyamong systematic business owners. This underscores the necessity
for the government sector to proactively champion and foster
opportunities for elderly workers, aligning its strategies with thechanging global landscape. The cultivation of a heightenedawareness of self-reliance and the establishment of adaptablesystems to address changing societal dynamics are vital for thegovernment.
Foremost among these measures is an expedited focus on thedevelopment and refinement of the welfare system. This systemshould be geared towards empowering individuals to achieve selfreliance while upholding their dignity and honor. The emphasisshould shift from passive reliance on government assistance toactive participation in self-sufficiency. In essence, the government’s
role needs to progress beyond only offering assistance to persons
who are unable to help themselves, and instead focus on enabling
their path towards self-sufficiency in a manner that is comprehensive
and respectful.

References
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Dr. Morragotwong Phumplab is an assistant professor at the Faculty of
Liberal Arts, Thammasat University, Thailand. Her interests include diplomatic
history, and socio-political and cultural history in Southeast Asia, especially
Vietnam and Thailand.

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