Economic experts have urged the private and industrial sectors to quickly modernise and ease the impact of the Thailand 4.0 economic development model.
Apichat Satitniramai, a lecturer at Thammasat University's Faculty of Economics, said 70% of Thai factories lack innovation and are not manufacturing local brands, so are heavily affected during world economic slowdowns.
In addition, a decline in foreign investment in Thailand was the result of a lack of competitiveness when vying with other countries in the global market.
To address the problem, the government should expedite efforts to boost the country's industrial infrastructure such as skilled labour as well as better technology and innovation which would help persuade foreigners to invest in Thailand.
Even though the global economic situation is better, the country's economy is expected to grow by only 3% because of a failure to meet present-day demands, he told a recent seminar on Thailand's economic situation and workforce.
"Twenty years ago, we faced the 1997 'tom yum goong' financial crisis due to uncontrollable rapid economic growth. However, from now on, Thailand will encounter the 'tom kob' [boiled frog] crisis, or sluggish economic growth, instead," he said.
He compared the economic situation with a frog being boiled alive.
The frog will immediately jump and escape if it is put into hot water, but if it is put in water where the temperature is slowly increased, the frog will adjust its own body temperature to match the gradually increasing water temperature until it is too late and is cooked to death.
"If we don't adjust our industrial structure, we won't be able to compete with other countries and will gradually die like the frog," he added.
Decharut Sukkumnoed, a lecturer at Kasetsart University's Faculty of Economics, commented on the government's new Thailand 4.0 economic model, which focuses on technological innovation and digital development.
The government needs to conduct a study on the scheme's impact on workers at all levels as many could lose their jobs as a result of being replaced by new technologies in the industrial sector, he said.
According to Prof Decharut, figures suggest low-income families have a household income of 9,600 baht per month on average and expenses of 12,000 baht per month.
Of these expenses, 48% are on food, 20% for accommodation and 14% travel expenses.
The price of food, particularly vegetables and fruit, is higher than other commodities, which increases the burden on low-income people, he said.
Prof Detcharut also said several economic factors indicated the Boiled Frog crisis exists. He gave the employment rate dropping by one million people since 2013 as an example.
Most of the seminar's participants believed the government's failure to collect sufficient tax from wealthy people has also contributed to sluggish economic growth.
Assoc Prof Sustarum Thammaboosadee, an economics lecturer at the TU's College of Interdisciplinary Studies, said this failure in tax collection will affect other aspects of the country such as state welfare and inequality of education.
He called on the government to devise measures to help employees and workers overcome the effects of the Thailand 4.0 policy.