The Economist: Digital workforce essential for progress

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No digital transformation for Thailand unless it overcomes its skilled tech worker shortage. Incentives & new immigration rules to attract skilled people not cash-rich companies needed.

TECHNOLOGY, WORKFORCE & EDUCATION

The Economist: Digital workforce essential for progress

3/02/2017
Suchit Leesa-nguansuk

(Source: Connecting Capabilities: The Asian Digital Transformation Index, A report from The Economist Intelligence Unit)

Thailand needs to urgently build a digital workforce with IT skills to cope with the transformation of existing businesses and industries, say IT experts.

A report from the Economist Intelligence Unit (EIU) revealed that Thailand ranks in the bottom half of the Asian Digital Transformation Index -- eighth place out of 11 countries (see here & read pdf report here & for Thailand only here).

That puts Thailand behind the region's more technologically developed countries but still ahead of India, the Philippines and Indonesia.

The top three countries in the index are Singapore, South Korea and Japan.

WEAKNESSES IN HUMAN CAPITAL, INFRASTRUCTURE & CONNECTIVITY

The country was ranked eighth as multiple weaknesses weigh the country down in all of the three pillars of the index:

1. Digital infrastructure,

2. Human capital, and...

3. Industry connectivity.

The EIU found Thailand improved its digital infrastructure and connectivity in recent years, particularly with affordable broadband and 4G, similar to infrastructure in other countries in Southeast Asia.

SHORTAGE OF DATA ANALYSIS & USER EXPERIENCE DESIGN

Software Park Thailand (Source: Wikipedia)

The main constraints are shortages of technical talent in particular digital fields such as data analysis, user experience and design.

The digital transformation environment has also suffered from inconsistent government support for, and policies toward, digital development and ICT lawmaking.

NO DIGITAL TRANSFORMATION WITH SKILLED WORKER SHORTAGES

The digital transformation in Thailand cannot succeed if the country faces skilled worker shortages, especially in banking and logistics, according to Jarit Sidhu, research manager of IDC Corporation for Asia-Pacific.

"ICT plays a vital role in different phases of business. It's time to include IT in every faculty," he said.

For instance, an MBA programme should cover areas of digital marketing, while a medical education programme should add technologies and tools involved in diagnostic procedure.

Networking equipment part of digital infrastructure.

EASE EMPLOYMENT REGULATIONS FOR BRINGING IN FOREIGN WORKERS

Mr Jarit said policymakers need to ease employment regulations for bringing in foreign workers.

For instance, Singapore has lowered personal income tax rates to attract talent from abroad.

Digital transformations require specialised workers with digital skills such as data analytics and database management to drive rapid change.

Sergey Brin, Russian immigrant to US who co-founded Google as a poor graduate student at Stanford University, now 16th richest man in the world.

This is according to Natasak Rodjanapiches, managing director of Oracle Corporation (Thailand) that specializes in database management systems.

Streamlining the visa renewal process and simplifying the work permit process could attract highly skilled workers, he said.

It is worth remembering that some leading US technology entrepreneurs and innovators came to the US with little or no money such as Sergey Brin, co-founder of Google.

Such innovators would simply be passed over for not having enough investment money by Thailand's Board of Investment (BoI), the government agency in charge of attracting investment in Thailand.

In the past there were dreams of attracting foreign technology talent to Phuket and its software park as well as Software Park Thailand (see here).

Software park Phuket (Source: Facebook)

TECHNOLOGY COURSEWARE & CURRICULUM

There are also plans to develop and produce Thai language courseware and curricula to prepare Thai students for industries in the new digital economy.

To accomplish this, a consortium will be established consisting of private ICT companies in the Thai Federation of ICT Association, universities and the Office of the Higher Education Commission.

This is according to Thanachart Numnonda, president of the Association of the Thai ICT Industry.