Future Skill Needs and Anticipation Case Study of Petrochemical Industry, THAILAND · 2018-03-21 · Future Skill Needs and Anticipation Future Skill Needs and Anticipation Case Study

Future Skill Needs and Anticipation

Future Skill Needs and Anticipation Case Study of Petrochemical Industry, THAILAND

Paper presented at the 1st Expert Meeting on Future Skill Needs and Anticipation in Selected Sectors and Industries in the ASIA

and Pacific RegionOVEC, Bangkok, THAILAND

As a newly industrialized country,

Office of the National Economic and Social Development

Board (NESDB) has launched the Current Quarter Model

(CQM) to predict the current economy of THAILAND.

"CQM" model has been used for a quarterly economic

forecast to be accurate to the facts.

NESDB predicted GDP growth at 3.9 percent in 2017,

compared with a 3.5-4.0 percent range seen earlier.

In 2016, the economy grew by 3.2 percent.

As for 2018, it forecasts GDP growth of 3.6-4.6 percent,

with exports seen up 5 percent.

I. Introduction

Thailand GDP Annual Growth RateSource: Trading Economics, 2017

II. Demographics and Labor Market

Population

The total population in Thailand increased from 27.4 million people in 1960 to 65.93 million people in 2016.

There are 2.2 million illegal and legal migrants in Thailand, including expatriates from developed countries.

Thailand PopulationSource: Bank of Thailand, 2017 Available from:

https://tradingeconomics.com/thailand/population)

Fertility rates in this country are now 30% below replacement level, although this doesn't mean that Thailand isn't growing.

The country now is currently facing two population issues: a quickly aging population and urbanization.

It’s claimed that the government-funded family planning program has raised awareness and led to a dramatic fall in birth figures.

The majority of population age is between 15 years and over accounted for 55.80 million persons. Approximately, 37.94 million of these people were in the labor force or available for work.

The 37.21 million were employed, 450 thousand were unemployed and 280 thousand were seasonally inactive labor force.

While 17.86 million were not in the labor force or not available for work

Structure of THAI Labor

Table 1: Comparison aged 15 years and over ofpopulations by labor force status

Unit : million persons

Labor force status 2016 2017

Jan Feb Dec Jan

Persons 15 years and

over

55.44 55.47 55.77 55.80

1. Total labor force 38.13 38.42 37.79 37.94

1.1 employed 37.58 37.87 37.36 37.21

1.2 unemployed 0.35 0.34 0.30 0.45

1.3 seasonally 0.20 0.21 0.13 0.28

2. Not in labor force 17.31 17.05 17.98 17.86

In 2017, the total number of employed persons was about 37.21 million,

which 10.63 and 26.58 million were in agriculture and non-agriculture sectors, respectively.

Comparing with January in 2016, it was shown that the number of employed persons in agriculture sector decreased by 0 .1 9 million and non-agriculture sector decreased by 0.18 million.

Employed of the Labor Force

Table 2: Comparison of number of employed persons by industryUnit : Million persons

Industry2016 2017

Jan Feb Dec Jan

Total 37.58 37.87 37.36 37.211. Agricultural 10.82 11.19 12.57 10.63

- Agriculture, forestry and fishing 10.82 11.19 12.57 10.63

2. Non-Agricultural 26.76 26.68 24.79 26.58- Manufacturing 6.58 6.60 5.93 6.21

- Construction 2.42 2.69 1.84 2.21

- Wholesale and retail trade; repair of motor vehicles and

motorcycles6.37 6.31 6.14 6.72

- Transportation and storage 1.33 1.28 1.22 1.30

- Accommodation and food service activities 2.86 2.71 2.65 3.02

- Financial and insurance activities 0.55 0.54 0.54 0.56

- Real estate activities 0.16 0.19 0.21 0.21

- Public administration defense 1.65 1.62 1.49 1.63

and compulsory social security

- Education 1.28 1.23 1.15 1.34

- Human health and social work activities 0.76 0.65 0.74 0.68

- Other service activities 0.81 0.84 0.82 0.87

- Others 1.99 2.02 2.06 1.83

Employed Labor Force by Level of Education Attainment

Most of Thai labor forces are educated at lower level including less than elementary, elementary, lower secondary, upper secondary as vocational level.

This total number of employed persons is approximately 45 percentage of the total number of employed persons educated at tertiary level.

Labor Force Status SEP 2017

Employment 37,246.78

1. None 1,134.08

2. Less than Elementary 7,336.59

3. Elementary 8,282.77

4. Lower Secondary 6,109.60

5. Upper Secondary 6,237.31

5.1.General/Academic 4,834.33

5.2.Vocational 1,399.89

5.3.Teacher Training 3.09

6.Tertiary level (Undergraduate – Postgraduate) 7,896.66

6.1.General/Academic 5,026.78

6.2.Vocational 2,095.68

6.3.Teacher Training 774.19

7. Others 96.70

8. Unknown 153.09

Number of Employed Persons classified by educational level

Figure 4:Comparing of number and rate of unemployment bylevel of educational attainment in January 2016 and 2017

2016

Many countries have recently rolled out innovation strategies for the 21st century.

Thailand has been promoting successive economic development schemes for over 50 years, successfully becoming an upper-middle income country during this period.

III Petrochemical Industry

Innovation-Driven Economy

Source: http://thaiembdc.org/thailand-4-0-2/

https://ww

w.youtube.com/watch?v=EMR0v9l3A1Q

Thailand's PTT Ethane Separation Plant Video: Fluor

https://www.youtube.com/watch?v=gXXTl_hM_EM

"InterPlas Thailand": Plastics & Petrochemical Manufacturing at Its Best

Petrochemicals

V. Skill Needs Assessment and Anticipation for Petrochemical Industry

Thailand has examined the best practices in TVET school-workplace collaboration: bridging the skill gap to meet manpower needs of the 21st century workplace.

TVET educational institutions must collaborate with the industry.

Thailand has used several methods to survey skill needs such as -TVET &national education policy, - international & national standards and strategy papers, - advocacy and information materials, - research papers and syntheses, - evaluation reports, - case studies & good practices and statistical information.

The Vocational Chemical Engineering Practice (V-ChEPC) launching at Map Ta Phut Technical College in Thailand’s Rayong province, supported by a comprehensive group of partners.

PTT Global Chemical (PTTGC),

The Petrochemical Industry Group,

The Federation of Thai Industries,

The Suksaphat Foundation,

The Petroleum Institute of Thailand, and

The Office of the Vocational Education Commission (OVEC).

Good practices in TVET school-workplace collaboration

Map Ta Phut Technical College was selected as the prototype to develop qualified technicians to support petroleum and petrochemical industries of the country and can be served as a role model for vocational studies.

PTTGC’s involvement in the V-ChEPC Project goes beyond in such many ways as the following:

providing financial supporthelping to develop the curriculum for the

petrochemical engineering program. serving as lecturers, giving students the

opportunity to hear from experts.Giving on-the-job training and practical

experience to petrochemical students at PTTGC’s plants

This component is crucial, as learning the “tools of the trade” allows participating students to apply the relevant knowledge and skills they need in the workplace. This reflects the concept “to learn and to experience, in order to be skilled.” Graduates of the program are offered professional employment at PTTGC.

This project also links to CSR Strategy: Trust and Growth.

In the world of work, the competency consists of three main streams: knowledge, skills, and attitude at work. Each job in various industries focuses on the specific skills to perform effectively.

Thailand has set the organization which isresponsible for developing professionalqualifications as a mechanism to enhance theprogress and productivity of manpower in the

country called as Thailand ProfessionalQualification Institute (TPQI).

• Skill Scope and Framework

This agency has worked with industrygroups and stakeholders to identify thecompetencies required to develop the industrycalled Professional Standards.

This determines the performance of individuals in the profession as well as certification of skills. It also defines with the creation of standards to measure performance in order to guarantee "Qualification".

TPQI

Meeting the demands of Thailand’s petrochemical industry, TPQI has set the qualification of this technician of career in petroleum and petrochemical industries. These are classified into 2 levels: 4th and 5th as the following:

Characteristics of Outcomes- Basic theoretical and practical knowledge that can be

applied in a variety of operations in petroleum and petrochemical industries.

- Analytical skill - Solve Problem skill - Independent of a complex responsible duty.

Qualification PathwaysThe promotion of professional qualifications requires an

experience and learning development of the petrochemical technicians. They can apply for an assessment when they fit all criteria to get promotion in career.

Mechanical Maintenance Technician; 4th level

Competency Unit in operation of this Qualification- Safety in Mechanical Maintenance- Checking, Repairing or Replacing of

Malfunctions Rotating Equipment and Auxiliary System (rank1, 2, and 3)

Characteristics of Outcomes

- knowledge and skills on complex specialized operations

Qualification Pathways

Upgrading of professional qualifications requires the technician’s experience and performance to criteria. This can apply for an assessment.

Target group

Technician in the petroleum and petrochemical industries of mechanical maintenance at 5th level

Mechanical Maintenance Technician; 5th level

Petrochemical workforce Thailand

Number of Vocational Students in

Petrochemical

YearDiplo

maTotal

Gradu

ate

Stude

nts

Note

2556 528 528 -

2557 81 81 131Male : 105 ,

Female : 26

2558 266 266 40

2559 77 77

2560 261 261

External Factors and Conditions

1. Fracking technology is capable of extracting a large quantity of natural gas. It is an extraction technique that combines

two technologies,

- hydraulic fracturing and

- horizontal drilling.

The technique consists of pressurized injection of chemicals and sand into the ground.

Technology

2. On-purpose of precursor-sourcing technology can help to reduce the problem of shortage in petrochemical precursors.

Since these two technologies significantly impact competitiveness between international players, producers who can utilize them will be able to produce petrochemical precursors at a lower cost and at a higher quantity.

3. Bio-plastic Technologies can contribute to new specialty products development. It can also be expected to environmentally conscious customers.

Environment

4. 3D printing technology

It is another important technology to create new opportunities for plastic producers.

As the results, bioplastic technology and 3D printing will better meet consumer needs.

This will present an important opportunity for Thai operators to enhance the value of their supply chain in order to expand markets to the world in the future.

Therefore, Thai operators must adjust and improve themselves in order to remain competitive with other global players

- In 2013, the Committee of Thailand Professional Qualification Institute and the PTIT Council of Trustees established the professional qualifications and occupational standards in petroleum and petrochemical sectors.

- The guidelines for the petroleum and petrochemical business has been used as a benchmarking tool in developing their teaching programs.

-They can be a test to assess the technicians' skill and a gap of training course.

- And also, It is aimed at raising the qualifications and skills of technicians in the petroleum and petrochemical sectors as a preparation for ASEAN Economic Community integration.

Curriculum and Professional Qualifications

Thailand has developed the national vocational qualification system consisting of

- professional qualification framework,

- classification of occupations,

- professional standards,

- organizations/stakeholders,

- quality control of professional qualification process

responsible by certified organizations, professional qualifications framework, and professional qualifications database and the information systems.

Curriculum and Professional Qualifications

The professional qualification framework

The Petroleum Institute of Thailand (PTIT) provides the Training Course Guidebook to stakeholders with courses organizing throughout the year.

The guidebook was used to develop both operational and managerial personnel to meet the criterion for organizations’ competency development based on their training needs.

Training Course Guidebook

Anticipating skill needs in Thailand

1. Trend of world technology changes

2. Economic expansion of each sector

3. Networks of investment with

foreign countries

4. Structures of world and Thai population

Anticipating skill needs in Thailand

5. Labor market and occupational standards

6. Quality demand – using Diamond Model (Gap of demand and supply on

competency requirements)

7. Institution and Industries partnership