Commissionerof the Securities and Exchange Commission (SEC) points outthat Thailand is facing a critical human capital deficit as it fully enters an aged society, urging the government to act quickly and accelerate recovery efforts before financial collapse, while citing Singapore's model for comparison.
On 21 May, Mr. Patchara Naripthaphan, commissioner of the Securities and Exchange Commission (SEC), stated that the government's challenge in addressing an aging society is urgent. Thailand will become a fully aged society in 2024, with elderly people comprising 20.69% of the total population, ranking 17th worldwide. The country took less than 20 years to increase the elderly population proportion from 10% to 20%, faster than Singapore and China, which took 25 years, and much faster than the U.S., which took 69 years. The government should consider three key data sets. The first setis that currently, three workersmust support one elderly person, andit is expected to drop toonly two workers by 2044. The third set indicates that without urgent reform, Thailand risks fiscal collapse due to a shrinking tax base and rising welfare burdens.
Our neighboring country facing a similar issueis Singapore, which serves as an important model to adapt for Thailand’s elderly policies, based on three main pillars.Singapore has successfully initiated this through a set ofcore approaches, implemented via systematic and measurable policies in three areas: 1. Gradual extension of retirement age supported by legislation; Singapore raised its retirement age from 55 in 1988 to 63 in 2021 and plans to increase it to 64 in July 2026,with a roadmap to reach 65 years and extend mandatory employment age to 70 by 2030, all backed by law with clear timelines.2. Direct subsidies to employers through the Senior Employment Credit program, where the Singaporean government provides wage subsidies of up to 7% for hiring employees aged 60 and over. Additionally, the Part-time Re-employment Grant promotes flexible employment, with over 6,300 employersutilizing these benefits, covering nearly 50,000 older workers by the end of 2023. 3. A Lifelong Learning system throughSkillsFuture,which offers measurable outcomes.
Mr. Patchara added that the SkillsFuture program is a national policy promoting lifelong learning and skill development for Singaporeans of all ages. Unlike typical training programs,it has a three-step evaluation process: immediate post-course surveys,six-month follow-ups,and actual employment and wage tracking. According to the SkillsFuture Singapore Year-in-Review 2024, over 54% of participants in the SkillsFuture Career Transition program found jobs within six months after completing the course, and 69% reported improved job performance. Since its launch in 2022 through the end of 2024, 55% of nearly 4,300 participants have gained employment within six months. What makes this mechanism effective is that these survey results inform funding renewals for training providers, meaning if graduates do not secure jobs, the institution loses
its government subsidy rights.Mr. Patchara further noted that Singapore’s retirement age extension policy is effective only when implemented alongside three elements:enforceable legislation, financial incentives for employers, and a reskilling system that keeps workers competitive in the job market. However, despite this good example, Thailand’s significantly different context requires it to design its own policies tailored to its needs. First, data from “Aged Society: Embracing Challenges and Unlocking Opportunities” shows that in 2021, every 100 working-age people supported 21 elderly over 60,up from 13 in 2015, with the trend continuing upward. Meanwhile, labor force participation fell to 68.7% in 2023 from over 70% a decade ago.Second, the report “Aging Population and Employment in Thailand: Towards Inclusive Legal Reforms” found that among working elderly in Thailand, 63.7% are self-employed, 16.3% assist in family businesses, and only 16.2% have jobs in the public or private sectors. Meanwhile, 31% of elderly Thais have no savings, and 42% have insufficient income. Third, Thailand scored 50.6, placing it in group C, on the 2025 Mercer CFA Institute Global Pension Index, indicating significant pension system gaps, especially in coverage of informal workers and low savings levels. In contrast, Singapore scored 80.8, entering group A as the first Asian nation to do so. Even the best regional systems still need improvement, particularly in extending coverage to foreign workers, who are a significant portion of the workforce.Thailand’s greatest weakness compared to both countries is that 67.2% of elderly Thais have not completed primary education, and only 7.9% have tertiary education. This low skill base means reskilling programs like Singapore’s would not reach most of Thailand’s elderly population unless adapted to the local context.The SEC commissioner concluded with three recommendations for the government to pursue simultaneously:1. Enact concrete laws to extend retirement age. Currently, Thailand’s civil service retirement age remains at 60. Though ideas to extend it to 65–70 years exist, no binding law has been enacted. Singapore’s example clearly shows that retirement age extension requires legal backing combined with financial incentives for employers to be effective. 2. Develop reskilling systems accessible to informal workers. According to the OECD Economic Survey Thailand 2025, informal workers account for 52.7% of the total workforce, or 21.1 million people. State skill development programs must be designed to reach this group proactively, bringing training to them rather than waiting for them to seek it. Payment conditions for training institutions should shift from counting attendees to measuring actual employment and income changes after training.3. Actively attract skilled foreign workers. Relying solely on the domestic labor force is insufficient. Thailand’s strengths in quality of life and living costs can attract foreigners if clear, competitive long-term visas and benefits for skilled workers are established regionally. However, Thailand faces its most significant demographic shift in decades. Human capital is not a cost butthe highest-return investment in the long term, and this is the challenge the Thai government must address to support the country’s evolving society and development.