Further down the road

Since the last time I checked in much more research has been done as my attention has shifted towards other literature on the topic of the utilisation of technology in the modern Thai economy. In many articles and academic journals, the term “Thailand 4.0” has arisen as a result of the policies put in place by the Thai government since 2005, highly incentivising investment in information technology. This highlights Thailands natural progression from 1.0 being agriculture, 2.0 light industry, and 3.0 heavy industry. Thailand 4.0 is said to achieve a value-based economy, to rival a creative economy based on innovation such as South Korea.

Thailands businesses are primarily comprised of Small and Medium Enterprises or SME’s which make up 98% of all businesses and 37% of Gross Domestic Product. The aim of Thailand 4.0 is to create a natural environment for technology-based companies to flourish as businesses become more efficient. Mckinsey and Company released a report in April 2017 stating that a 20% increase in Information Technology investment would lead to a 1% growth in GDP.

This shift to technology is not all positive or without any setbacks as there is now a severe shortage of skilled workers, unable to meet the demand of the economy’s blistering pace. This may eventually lead to structural unemployment as old, low skilled employment dries up. Thailand may need to begin investing in educational strategies and explore western ideas to keep up with its growth requirements.

This discovery of new research and data has opened up a whole world of new avenues to explore in my studies and I can’t wait to get back to you with what I’ve been doing over the next few weeks.