Thailand's economic development will face the adverse impact of an ageing society over the next 20 years with a dramatic decline in the workforce, the government's planning agency warns.
"In 2040, Thai people aged over 60 are expected to number 20.5 million or 32% of the total population, with the total workforce seeing a drastic drop to 35.2 million from the current 39-40 million," said Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board (NESDB).
"The shrinking workforce will inevitably affect the country's future economic growth, agricultural, industrial and service sectors and may cause fiscal burden over the next 20 years."
According to the NESDB, Thailand currently has an estimated 6.4 million elderly people, accounting for 9.9% of the population.
In Asean, Singapore has already become an ageing society, but Mr Arkhom said this would not cause any problems to its population as Singapore is regarded as a rich nation.
Kosit Panpiemras, executive chairman of Bangkok Bank Plc, said the rise in the number of ageing people and drop in the number of children and those of working age will hinder future development. Without any improvement, the problem will get worse because Thailand remains a middle-income country.
"The ageing society is now a serious issue for Thailand. The government needs to take measures to ease its future impact on the country's economic growth and competitiveness in the long run," he added.
The NESDB and related agencies have agreed on three strategies for the next 20 years which cover the upgrading of Thailand's workforce capability and productivity, adoption of high technology in the agricultural sector, and developing a knowledge-based economy.