AEC to boost medical, logistics

Thai medical care is widely recognised by patients in the Middle East and Japan but has not captured the Asean market, said EIC chief economist Sutapa Amornvivat.

Thai medical care has an advantage over other countries in the region, reflected in the more than 1.4 million foreigners who use the service per year, higher than Singapore, which welcomes about 600,00 foreigners per year. The increase in the middle-income group in the Asean region and the ageing society are supporting the industry. Moreover, the increase in the number of older people will lead to higher expenses for medical treatment, said the economist.

However, Thailand must quickly build up human resources for this field because the country is facing a shortage of manpower compared with Indonesia and Malaysia, which have prepared their workforces well for the medical field. 

Logistics is a business that will see growth because Thailand’s geographical location connects the northern countries of the region that have greater natural resources and the southern countries that have developed infrastructure and technology.

SCB’s EIC has suggested that Thai logistics companies should create a network that could save costs and also be able to withstand competition from foreign logistics businesses. She said medical care and logistics were two industries in Thailand that should thrive under the AEC while industries that seek lower costs will leave for neighbouring countries.

Modern trade is among businesses that can cash in on the AEC,However, the challenge for Thai companies is how to build brand awareness among local buyers.