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Productivity and skills - an imperative in an Integrated Asia Australia and Human Capital and Skills Development in Thailand Greg Wallis Senior Trade Commissioner Australian Trade Commission (Austrade) Bangkok, Thailand

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Australia Unlimited Skills and productivity issues in Thailand ASEAN Economic Community in 2015 Declining labour force growth; aging population Skills mismatch and skills shortages Most vocational students extend their studies to higher vocational and bachelors degrees (social value), causing a shortage of skilled workers. Quality of education: students lacking skills in IT, English, analysis and creativity 2

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Australia Unlimited Skills shortage situation in Thailand (by sector) Source: A Survey by Bank of Thailand, 2011 3

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Australia Unlimited Thailand Automotive Production Forecast (as of October 2012) Source: LMC Automotive Ltd, 2012 4

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Australia Unlimited Forecast of Manpower Required for the Automotive Parts Industry Source: A survey of members of the Auto Parts Club and Thai Auto-Parts Manufacturers Association, July 2011 5

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Australia Unlimited YESTERDAY Australian vocational education reforms in retrospect Pre 1960 Training and institutions largely concentrated around males working fulltime in a narrow band of trade-related industries 1960sIncreased female employment and preparatory and pre-vocational training 1970sFormation of Technical and Further Education (TAFE) 1980sPrivate unregulated training providers emerge 1990sIntroduction of Australian Apprenticeships The establishment of the National Training Framework Vocational Education and Training (VET) in schools Development of training packages Reform directed at increasing young peoples participation Development of a consolidated national system 2000sVET system continues to respond to industry, individual and community needs 6

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Australia Unlimited TODAY Australian capabilities in skills and education Technical and Further Education (TAFE) institutes and private registered training organisations (RTOs) Designed to provide hands-on skills and experience Industry-led Competency-Based Training (CBT) Flexible Based Learning (FBL) Recognition of Prior Learning (RPL) between education sectors Recognised by the OECD, UNESCO and the ILO for its capacity to meet industry needs 7 Vocational Education and Training (VET)

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Australia Unlimited Industry Skills Councils (ISCs) 1.Provide industry intelligence to the VET sector. 2.Support nationally recognised training products and services Source: http://www.isc.org.au/ 8

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ASEAN Human Capital and Skills Development Initiative by Austrade Thailand Perspective

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Australia Unlimited Austrades Human Capital and Skills Development Initiative Automotive sector in Thailand 1.Identify skills development issues High level discussions with industry players and education & training providers. Positive feedback from the sectors on Australian capabilities to fill in the gap. 2.Link local companies and institutions with Australian education providers and companies 3.Establish partnerships QUESTION: Which skills are needed in the Automotive sector? ANSWER: 1) Production skills 2) Aftersales Service skills 3) Soft Skills 4) English Language skills Both pre-employment and employment level 10

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Australia Unlimited Other examples BlueScope Steel working with TAFE NSW to deliver a roof plumbing and fixing program in Thailand Australian company, Foodstream, has worked with Thailands Kasetsart University (Food Research & Product Development Institute) to offer professional development courses 11

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Australia Unlimited Why Australia? International Standards and Policy Framework Capabilities and know-how Assistance and Advice 12

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Australia Unlimited Summary Thailand faces a critical industry skills shortage. This will be most acute in the manufacturing sector. Australia has developed practical vocational educational & training capability to match industry needs. Austrade is working with government & industry in Thailand to scope needs and suggest options, especially in the automotive sector and also food, hospitality and personal services. Co-operation is underway at institutional level; opportunity now for individual needs delivery. 13

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Australia Unlimited Contact the Australian Trade Commission Contact us Australian Trade Commission (Austrade) Australian Embassy, 37 South Sathorn Road, Bangkok 10120, Thailand T +66 2 696 4800 | F +66 2 696 4801 Visit www.austrade.gov.au Visit www.exportawards.gov.au Visit www.businessclubaustralia.com.au Visit www.studyinaustralia.gov.au Visit www.dfat.gov.au 14