Kelly Services predicts Thai salaries to grow 5.5% in 2018

Fast-moving consumer goods (FMCG), manufacturing and banking are the big winners as Thai salaries notch upwards 5.5% on average, thanks to a shift towards digital economy.

Salaries are projected to increase 5.5% in Thailand this year, with the top-paying jobs being in fintech, e-commerce, retail, manufacturing, tourism, and construction, according to the Kelly Services 2018 Thailand Salary Guide.

The economy is expected to grow between 3.8-4%. This growth will be underpinned by the nation’s shift towards a digital economy under the Thailand 4.0 road map, which will drive employment and wages as technology opens up new opportunities for workers.

“Workers can look forward to moderate salary increases following a successful year for the Thai economy,” said Wanna Assavakarint, managing director of Kelly Services Thailand. “Industries undergoing digital transformation will experience expanding challenges as they steer away from the middle-income trap and work towards an innovation-led model.”

One of the biggest growth opportunities ahead will lie in expanding Thailand’s human capital to keep pace with the digitisation of the economy. There will be tremendous demand for workers in science, technology, engineering and mathematics. Investment in building these skills will be crucial to fulfilling Thailand’s digital economy vision.

“We expect a greater demand for technology-literate workers as businesses in relevant sectors shift towards technologybased production activities and services to better compete internationally,” she said.

SECTOR INSIGHTS

E-commerce has become a major driver in consumer goods sales growth in the FMCG and retail sectors, accounting for a record 36% of global FMCG growth and outpacing offline retail growth.

Thailand is expected to continue being a strategic country for consumer goods companies, with export demand rising and year-on-year GDP growth in the September quarter of 2017 reaching the highest in four years.

The guide predicts country managers in the FMCG market are the best compensated among all industries (300,000600,000 baht monthly).

In the manufacturing sector, the government is pursuing a strategy of differentiation through its digital push and heavy infrastructure investments in projects such as the Eastern Economic Corridor, which will promote overseas trade and investment.

Close to 50% of Thai manufacturers are considering adopting automation systems within 1-3 years.

In the IT sector, improved infrastructure, evolving consumer behaviours, and government efforts to digitise the economy have helped stimulate relevant sectors.

Greater bandwidth, higher speeds, and lower latency have continued to increase consumer demand and adoption of digital activity.

The IT market is expected to grow at a compound annual growth rate of 6.83% in 2014-19.

In the banking and finance sectors, Thailand’s digital push has seen a rise in fintech activities. With the total value of venture capital reaching 86.02 million baht in 2016, a greater number of fintech developments and higher demand for tech talent will appear as Thailand vies to compete with the region’s financial hubs in Hong Kong and Singapore.

Human resource (HR) professionals will be key to supporting organisations in both the search and training of workers.

More than 50% of business leaders are redesigning their HR programmes to utilise digital and mobile tools, with a third already using artificial intelligence applications to deliver HR solutions.

Thai companies rated talent acquisition, leadership, career development and learning as top priorities in 2017.