Social Investment Landscape

Thailand

Thailand’s social economy is relatively nascent but well-supported by the government, a rich tradition of religious giving and a proactive corporate sector

Summary

Executive Summary

Thailand is one of the world’s few economic development success stories in the last 40 years, having risen from low-income to upper-middle-income status in less than a generation. Despite the passing of the long-ruling and deeply revered King Bhumibol Adulyadej in 2016 and ensuing political uncertainty, Thailand’s GDP grew 3.9% in 2017 – the fastest growth rate in 5 years. Abundant natural resources, a skilled labour force, openness to trade and a well-defined investment policy framework are factors that make Thailand an attractive investment destination.

Notwithstanding its impressive growth trajectory, the high Gini coefficient of 0.465 is a testament to entrenched income inequality in Thailand. Over 80% of the 7 million poor live in rural areas while another 6.7 million are vulnerable to falling back into poverty. Thailand’s rapidly ageing population and increasing environmental degradation are other key development challenges.

Thailand’s social economy is relatively nascent but well supported by the government with a rich tradition of religious giving and an active corporate sector. Giving is ingrained in the Thai culture and charitable donations, though ad hoc and sporadic, are considerable. The corporate sector has been proactive in meeting environmental, social and governance (ESG) standards. However, the impact investment volume in Thailand still trails behind neighbouring Southeast Asian countries such as Indonesia, the Philippines, Vietnam and Cambodia. The Social Enterprises Promotion Act, passed in February 2019, reaffirms the country’s commitment to the social economy.

Thailand’s Fact File

Thailand’s 2018 Fact File

69 million

Population

USD 1,234 billion

GDP (PPP)

World Rank 19

3.9%

GDP Growth

USD 17,872

Per capita GDP (PPP)

World Rank 76

16 37 in 2016

World Giving Index Rank

68%giving money 19%volunteering time 51%helping a stranger

30,000

Number of Millionaires

8.6%

Poverty

32/137

Global Competitiveness Index

Global Competitiveness Rank (2016-2017) – 34/138

27/190

Ease of Doing Business Rank

Ease of Doing Business Rank (2018) – 27/190
Source: ADB, Charities Aid Foundation, Credit Suisse, World Economic Forum, World Bank. Figures are accurate as of March 2019

Dashboard

SDG Dashboard

Thailand achieved nearly all of the Millennium Development Goals by their 2015 target deadline. As the economy has grown, more children are receiving more years of education, and almost everyone is covered by health insurance while other forms of social security have expanded. Gaps, however, still remain in rural poverty, sustainable agriculture, and environmental protection. One of the key frameworks used to evaluate sustainable development has been the Sufficiency Economy Philosophy (SEP), developed by the late King Bhumibol Adulyadej. By promoting a people-centred approach to sustainable development, SEP provides a cultural touchstone in integrating and harmonising the SDG framework with national goals.
Thailand’s recent national strategies, namely Thailand 4.0 (launched in 2016), the 12th National Economic and Social Development Plan 2017-2021, and the 20-year National Strategy 2018-2037, focus on improving economic competitiveness, equal economic opportunities, skill upgrading, environmental sustainability and effective public governance as ways to propel the country into the high-income group. Thailand 4.0 and the 20-year National Strategy are long-term strategies to transform Thailand into a developed country and refocus the economic model to be more holistic.
The 4 objectives of Thailand 4.0 are:
  • Economic prosperity: Increasing national per capita income to USD 15,000 by 2032
  • Human values: Raising Thailand’s human development index to 0.8 or among the top 50 countries by 2026
  • Social well-being: Reducing the Gini coefficient to 0.36 by 2032 and developing at least 20,000 “smart farmer” households by 2021
  • Environmental protection: Developing at least 10 cities into the world’s most liveable cities.

Source: sdgindex.org (2018)

Note: The “traffic light” colour scheme (green,yellow, orange, red) illustrates how far a market is from achieving a particular goal

Government Initiatives

Government Initiatives to Address Development Gaps

Agriculture

SDG Goals

Gap

  • In 2016, 32% of the national workforce worked in agriculture but primary production contributed only 10.5% to GDP.

Government Initiatives

  • Thailand 4.0 focuses on producing premium quality agri-produce with environmentally friendly biotechnology.
  • The 12th National Economic and Social Development Plan encourages the establishment of farmer cooperatives to achieve economies of scale, decrease underemployment and promote the use of technology and risk management.

Climate action

SDG Goals

Gap

  • The 2017 World Risk Report by the Institute for Environment and Human Security places Thailand in the medium category, with a rank of 91 out of 171 countries.

Government Initiatives

  • The 12th National Economic and Social Development Plan aims to increase Thailand’s forest area to 40% of the country’s total area and reduce greenhouse gas emissions in the energy and transport sectors by at least 7% by the year 2020.
  • The government is formulating a National Strategy on Action for Climate Empowerment in order to educate, train, raise awareness and encourage public engagement in climate change issues.

Education and employability

SDG Goals

Gap

  • According to UNESCO’s 2017/18 Global Education Monitoring Report:
    • 12% of Thai students did not achieve the minimum proficiency level in mathematics at the end of primary education
    • 50% and 54% were not proficient in reading and mathematics, respectively, at the end of lower secondary education.

Government Initiatives

  • The government seeks to equip the workforce with 21st century skills, improve the education system to meet international standards and promote lifelong continuous learning.
  • The Office of Basic Education Commission created an Equitable Education Fund in December 2018 with THB 1.6 billion (USD 50 million), which will provide additional financial support for 600,000 very poor students and reduce educational disparities.

Energy access

SDG Goals

Gap

  • More than half of Thailand’s energy supply is imported. Rising energy demand might cause the country’s oil and gas resources to deplete within the next decade.

Government Initiatives

  • The Alternative Energy Development Plan 2015 set a renewable energy target of 30% of total final energy consumption by 2036.

Health care

SDG Goals

Gap

  • Thailand is among the top 30 countries in the world that carry the highest burden of tuberculosis.
  • The number of Thai people diagnosed with non-communicable diseases, the country’s leading cause of death, has been rising 12% each year.

Government Initiatives

  • The government launched the Primary Care Cluster scheme in late 2016, commonly known as the “family doctor programme”. It strives to ensure the bottom 40% have better access to public health services, especially in remote areas.

MSME development

SDG Goals

Gap

  • MSMEs account for 99.7% of all enterprises but contribute only 42% of GDP and 29% of total exports.

Government Initiatives

  • The government has allocated THB 3.8 billion (USD 121 million) to a pilot programme to increase MSMEs’ contribution to GDP by 10% by 2023.
  • The Ministry of Commerce also plans to develop a national e-commerce platform to support MSMEs.

Poverty alleviation

SDG Goals

Gap

  • Over 80% of Thailand’s 7 million poor live in rural areas while another 6.7 million are vulnerable to falling back into poverty.

Government Initiatives

  • The 12th National Economic and Social Development Plan aims to enhance equal opportunities for the bottom 40% and raise their incomes by at least 15%. Measures include provision of quality education and health care services to disadvantaged groups in remote areas, allocation of land to poor landless farmers and skills training.
  • In February 2018, the government launched the THB 150 billion (USD 4.7 billion) Thai Niyom Yangyuen, or Sustainable Thainess programme, to promote sustainable development and poverty alleviation.

Social protection

SDG Goals

Gap

  • The senior population in Thailand is projected to reach 12 million or 20% of the total population by 2021, and 17 million, or 25% of the population, by 2040.

Government Initiatives

  • The Old Age Allowance policy provides a monthly allowance of up to THB 1,000 (USD 32) for seniors of 60 years and above.

Social Economy

Thailand’s social economy is relatively nascent but well-supported by the government, a rich tradition of religious giving and a proactive corporate sector

DEAL SHARE PLATFORM

Deal Share in Thailand

Steps Social Enterprise is working on providing access to appropriate and meaningful vocational training for the neurodivergent community in Thailand

Education, Employability

Compassionate Communities: Strengthening Community End-of-life Care in Thailand

By Compassionate Community Research and Development Institution Foundation

Compassionate Communities aims to educate communities in Thailand about life and death, better preparing individuals for situations involving death, loss, and care.

Ageing, Education, Health

Issara Institute aims to end labour exploitation, including forced labour and human trafficking, by transforming the systems and behaviours perpetuating labour exploitation, and empowering rights-holders in Southeast Asia.

Livelihood and Poverty Alleviation

Care and Medical Equipment for Elderly Individuals in Thailand

By Help Without Frontiers Thailand Foundation

The forOldy project aims to provide community care and access to second-hand medical equipment for elderly individuals in Thailand to increase their quality of life.

Ageing, Health, Livelihood and Poverty Alleviation

Ocean Material Group works to prevent ocean plastic pollution through an impactful solutions platform for circular materials, upstream solutions like infrastructure and educational projects, and its network of stakeholders committed to ending ocean plastic pollution.

Climate Action and Environment, Education, Livelihood and Poverty Alleviation

Ooca works to eliminate stigmatization associated with mental health conditions and to provide people with direct access to mental health professionals through online mental health platforms and video-call counseling services.

Health

Mapsea Corp.’s job matching platform SEASON is a specialised marine recruitment platform, utilising technology to link marine jobs to the right talent. The returns generated will be directed towards building a marine forest.

Employability

We aim to ensure access to high quality, inclusive, and youth-centred life skills and financial literacy for all children and young people worldwide, especially to the most vulnerable.

Education, Employability, Financial Inclusion

Case Studies

Case Studies in Thailand

ChangeFusion – Mutually building the mutual fund

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Social Investment Landscape in Asia