THAILAND² bets on human capital to power a high-income future

The national seminar, “THAILAND²: Powering Thailand, Advancing Human Capital”, was held at Kasetsart University’s Chakrabandhu Pensiri Building in Bangkok on Tuesday (July 21).

The initiative brings together five ministries: the Ministry of Higher Education, Science, Research and Innovation (MHESI), the Education Ministry, the Labour Ministry, the Agriculture and Cooperatives Ministry, and the Social Development and Human Security Ministry.

The collaboration is intended to produce a multiplier effect by systematically developing the capabilities of Thai people at every stage of life and preparing them to support new areas of economic growth.

 

Prime Minister Anutin Charnvirakul, who chaired the opening ceremony, said the partnership would establish a more integrated foundation for human development across different age groups.

The government’s official account described the programme as a five-ministry effort to expand opportunities and skills while adapting Thailand’s education, science, research and innovation systems to the demands of a changing world.

Four pressures on Thailand’s workforce

Anutin identified four major challenges requiring Thailand to accelerate the development of its population.

The first is the country’s transition into a fully aged society. Changes in the population structure are steadily reducing the proportion of working-age people, creating risks for national productivity.

The second is technological disruption. Rapid advances in artificial intelligence, automation and digital technology are replacing traditional forms of work, leaving workers who cannot adapt at risk of unemployment or declining relevance in the labour market.

Geopolitical volatility is another concern. International political and economic conflicts are affecting global supply chains and cross-border investment, requiring Thailand to develop internationally competitive personnel if it hopes to attract companies relocating their production bases.

The fourth challenge comes from environmental pressures and climate change. Natural disasters and environment-linked trade measures, including the Carbon Border Adjustment Mechanism, or CBAM, are creating demand for new knowledge and management skills.

Building a new generation of human capital

In response, Anutin said the government was advancing the concept of a new version of Thai human capital under the THAILAND² initiative, with urgent upskilling and reskilling programmes intended to multiply the capabilities of the population.

Conventional education alone would no longer be sufficient, he said. Existing skills must be upgraded and new capabilities created among workers in manufacturing, services and agriculture.

The government also intends to promote lifelong learning by opening education and training systems to people of all ages.

Children, young people, working adults and older people seeking new skills to return to employment would be supported through mechanisms such as transferable credit banks and short courses.

The aim is to allow people to continue learning and moving between education and work throughout their lives, rather than relying solely on long-term degree programmes completed at the beginning of their careers.

China visit highlights scale of research investment

Anutin also referred to an official visit to China, where the Thai delegation toured major technology companies including Huawei, Alibaba, Changan and Xiaomi.

He said Huawei’s approach demonstrated how heavily global technology companies invest in research and development.

According to the prime minister, Huawei spends about US$25 billion, or roughly 800 billion baht, on R&D each year, equivalent to about 20% of its total sales. He noted that the research budget of the single company exceeded Thailand’s total R&D spending.

“The visit to China showed that the transition to an innovation economy begins with committing resources and funding to people and research and development,” Anutin said.

“If Thailand continues to invest too little in R&D, it will be unable to create its own technology and will remain a low-cost contract manufacturing base. That is something we must urgently change.”

Five-year plan targets high-income status

Professor Yodchanan Wongsawat, Deputy Prime Minister and Minister of Higher Education, Science, Research and Innovation, outlined the MHESI Action Plan 2026–2030 during a keynote address titled “Powering Thailand, Advancing Human Capital”.

The five-year plan is intended to help Thailand escape the middle-income trap and become a high-income country through technology and innovation.

It covers eight areas, ranging from the development of an innovation ecosystem to the wellness industry, semiconductors, AI and physical AI.

Other priorities include frontier research in fields such as quantum and space technology, national security, anti-corruption efforts and the transformation of Thai universities into centres for creating knowledge and incubating innovation.

Universities urged to turn knowledge into revenue

Yodchanan said one of Thailand’s main challenges was to change the role of universities from institutions that depend heavily on tuition fees into centres for knowledge, innovation and new business creation.

Universities in innovation-led economies do not earn revenue from tuition alone, he said. They commercialise research and intellectual knowledge, build partnerships with private companies and return the resulting income to their institutions.

Greater income from knowledge and innovation could eventually allow universities to ease the tuition burden on students while creating new economic engines for the country.

Initial steps include establishing university networks or holding-company structures that can pool knowledge and funding from several sources and invest in innovation businesses.

Regulations are also being adjusted to give universities greater flexibility to invest alongside private companies.

Under this model, universities of the future would not be limited to providing lengthy academic programmes. Members of the public could enter universities for shorter periods to learn skills, use specialist equipment, develop projects and build on their knowledge throughout their lives.

Ministry highlights results from first 90 days

Yodchanan also presented science and technology initiatives undertaken during the previous 90 days.

New measures included the “Equal TCAS69” admissions policy and the use of AI to identify duplication in nationally funded research, which he said immediately saved the government more than 72 million baht.

The ministry has also pushed for salary adjustments to provide relief to more than 67,000 university employees.

Another achievement was the delivery of the Thai-developed CE-7 MATCH scientific instrument for use in a lunar mission.

The device, developed by the National Astronomical Research Institute of Thailand and Mahidol University with Chinese partners, is scheduled to travel aboard the Chang’e-7 lunar orbiter. Its purpose is to measure high-energy particles around the Moon.

Existing projects expanded during the period included Traffy Fondue, a platform for reporting and resolving urban problems that has handled 1.9 million cases.

The Precision Poverty Alleviation Platform, or PPAP, has used data to target assistance for 300,000 households, while support for local enterprises has generated nearly 10 billion baht a year for communities.

The ministry has also continued a water-security management project using big data.

Public-private funding model

Where government budgets are insufficient, Yodchanan said projects could be supported through joint investment with the private sector.

Funding ratios could range from 10% government and 90% private investment to 90% government and 10% private investment, depending on the nature and risk of each project.

The approach represents a change from conventional government grant models by allowing private capital to supplement public funding.

Yodchanan said the model could help projects continue, particularly where connections were established among local areas, provincial authorities and the Interior Ministry.

Four new engines of economic growth

Yodchanan proposed four New Growth Engines for generating additional national income.

The first is Semiconductor Thailand, supported by an “ASEAN Chips Diplomacy” policy intended to position Thailand as a regional production base.

The second is the wellness economy, with more than 12 billion baht expected to be invested in the medical innovation ecosystem.

A space-economy strategy would pursue lunar exploration partnerships with major powers including China and the United States.

The fourth strategy focuses on AI, with a target of providing digital knowledge to 20 million Thai people.

It also includes the Thailand AI Readiness Index, or TARI, which is designed to assess organisations’ AI capabilities and identify areas requiring improvement.

TARI was launched as Thailand’s first national AI-readiness assessment framework for organisations, examining factors including leadership, data, technology, workforce skills, governance and the practical impact of AI adoption.

National leadership network planned

The strategies are expected to be implemented through a proposed Subcommittee on Human Capital Development for Research and New Economic Engine Development under the Joint Public and Private Sector Consultative Committee.

Seven specialist working groups would be established, bringing together national-level leaders from government and the private sector.

Those named as prospective members include Chit Laowattana, Jareeporn Jarukornsakul, Saowanee Thairungroj, Komkrit Nakhalak, Bank Ngamarunchot, Saravoot Yoovidhya, Bawornnan Thongkalaya, Sutapa Amornvivat, Rueangroj Poonpol, Aticharn Cherngchawano, Isara Vongkusolkit, Sara Lamsam, Payong Srivanich and Theerapol Thanomsakyuth.

Ministers from the five participating ministries and representatives of other relevant ministries and agencies would also be involved.

“These prospective committee members will be an important mechanism for transforming policies that invest in Thai people into the country’s most powerful economic engine,” Yodchanan said.

“They will help support and power Thailand forward in a sustainable and resilient manner that includes every target group.”