Bangkok: Academics from the University of the Thai Chamber of Commerce (UTCC) have revealed that extending the retirement age for civil servants does not address the needs of an aging society and that the financial situation may not be able to support it. They also revealed that a prolonged US economic slowdown will put pressure on the dollar and impact the aviation and tourism industries.
According to Thai News Agency, Assoc. Prof. Dr. Anusorn Thamjai, Dean of the Faculty of Economics and Director of the Digital Economy, Investment, and International Trade Research Center (DEIIT) at UTCC, stated that Thailand's competitiveness ranking is likely to continue to decline if reforms to improve public sector efficiency are not accelerated. In 2015, the IMD found that public sector efficiency had fallen to its lowest point in a decade. This is attributed to business operations requiring numerous licensing procedures, outdated and redundant laws, and high levels of discretion by government officials, which are prone to corruption.
The academics propose six initiatives to improve public sector efficiency: reducing procedures and unnecessary licenses, improving public sector flexibility, decentralizing administration, integrating public services on a single digital platform, using Big Data and AI for policy adjustments, and reducing the patronage system in bureaucracy to enable capable individuals to advance.
Dr. Anusorn emphasized that extending the retirement age does not solve the issue of an aging society, as the declining workforce occurs outside the civil service system. He noted that many young individuals are unable to enter the civil service due to vacancies being filled by extended retirements, exacerbating the problem.
Additionally, Dr. Anusorn highlighted that the prolonged US government shutdown is impacting the dollar, US economy, and consumer confidence. The shutdown has affected the aviation industry, leading to flight cancellations and impacting tourism and large construction projects, while also causing uncertainty about economic and interest rate directions.