Due to a decrease in the population in the past three years, Thailand is expected to become a super-aged society by 2029, according to research conducted by Kasikorn Research Centre (KResearch).
The research also shows the number of newborns and adolescents between 2020 and 2022 has fallen.
Researchers said the number of newborns started to fall sharply in 2020 -- the year the pandemic was discovered -- and continued to decrease over the next two years, while the fatality rate also increased during the same period.
To make matters worse, the newborn rate of the country is now at 0.76% a year, while adolescents now comprise only 1.33% of the population.
These numbers are in stark contrast to the explosive population growth pattern seen during the Baby Boomer generation -- those who were born between 1963-1983 -- in Thailand, one million of whom will turn 60 years old this year.
Researchers said there are many factors contributing to this population decline trend, such as the pandemic and people's insecurity regarding financial matters. A newer trend whereby some are choosing to not have children is also affecting these numbers.
KResearch said it may be challenging for the country to focus solely on methods to improve population numbers, as this could potentially affect not only businesses but also public policies.
KResearch said businesses are facing a challenging situation due to the declining population which translates as fewer potential customers; because of this, businesses need to target those who have higher purchasing power to make up for the lost revenue.
It also suggested changing products or services to become more accessible for the elderly, most of whom have financial problems, and considering such services in the context of an ageing global market.
Apart from that, it suggested expediting the training and development phase for new workers so businesses are able to respond quickly to fast-changing business trends.
The concerning issue of population decline might be another challenge for the new cabinet on policies associated with the nation's competitiveness and its social welfare schemes, said KResearch.