The global economic downturn will inevitably hit most businesses hard inside Thailand including those with a plethora of non-Thais inside their payroll.
There are currently around 2.2 million foreign workers legally in Thailand according to official data but IOM suggests that the number could be as high as 4-5 million if one includes the informal sectors.
The informal sector will undoubtedly be hardest hit as day labourers and migrant workers suffer the brunt of the economic impact of the coronavirus outbreak. But professional workers and skilled workers will suffer from the pandemic as well.
In Bangkok alone, there are 80,000-90,000 professional work permit holders and tens of thousands more around the country.
This number does not even take into account those who bypass the official work permit system, such as so-called digital Nomads or other professionals who come to Thailand temporarily to do business on a non-standard visa.
It has to be very clear that Thailand’s foreign labour market is quite diverse, unique and complex, with many nationals operating a wide range of businesses. For just a brief snapshot, there are Japanese manufacturers, Chinese firms serving their own export/import market, Chinese businesses serving Chinese tourists, European professionals importing food and technology goods, Korean healthcare and skincare businesses and various US tech companies. All will be impacted by this outbreak. Expats working in Thailand will also face times of uncertainties, layoffs and difficult situation.
Sectors Affected
The predominant and obvious loser on the battlefield is the tourism industry. According to the Association of Thai Travel Agents, there is a drop of 91 per cent of tourist arrivals in March from the same period in 2019. The recorded drop in tourist arrivals in February was 44 per cent.
Very few tourist industry companies are prepared to account for zero income for several months. Tourism accounts for 17 per cent of Thailand’s GDP and employs over 12 per cent of the workforce directly, including many expats.
The second group of people on the chopping block will be engineers in the Thai Oil & Gas sector. Although these professionals usually have envy-inducing packages, the current oil wars mean that the sector could be looking at a lot of turnovers before long.
Already, Japanese, Korean and certain EU manufacturing companies have downgraded operations and production, and foreign nationals who are managing directors, overseas sales agents or direct manufacturing experts have been asked to take a salary reduction.
Education professionals including kindergarten and university teachers might have their new contracts reduced as there will be pressure on salaries in general. Many part-time lecturers have been let go and many have left the country fearing work permit issues.
Good teachers were already scarce prior to COVID19 crisis. The outbreak will make things worse.
Government help
With nearly every sector that employs expats severely affected by the coronavirus, the government should not be strictly enforcing work permit renewals and overstay rules.
The most obvious concern is the congregation of people at various immigration bureaus and overcrowding at reporting centres which threaten not only foreign workers with the possible spread of coronavirus but also Thais working at these bureaus.
Strict reporting regulation also means that stressful bureaucratic concerns are heaped on top of stressful economic ones. Foreigners with work permits and businesses must be given bureaucratic leeway and support just like their Thai counterparts to properly manage their businesses and given a fair chance to recover once the outbreak subsides.
It should be reminded that informal but skilled workers like digital nomads, artists and artisans contribute not only to Thailand’s economy through rent, retail and other purchases but they also contribute to Thai society through the exchange of information. They too should benefit from relaxed regulations.
The coronavirus knows no nationality or national borders. We are all in this together. Let us hope the Thai government are listening.
By Michaglio Masiario and Cod Satrusayang
