Thailand’s factories are facing a labour crunch, and robots may soon be clocking in.
A drop in Cambodian workers due to a simmering territorial dispute has forced Thai manufacturers to hurry automation plans, according to the Federation of Thai Industries (FTI).
The exodus of Cambodian labourers has hit sectors such as construction and agribusiness, where low-cost, manual labour is essential. FTI chairperson Kriengkrai Thiennukul said the disruption is pushing businesses to rethink their long-term strategies.
“The labour shortage is expected to be temporary, but the sector must adapt. Factories are starting to recruit more migrant workers from Myanmar, Vietnam, and Laos.”
Kriengkrai urged the Thai government to sign more labour agreements with neighbouring countries to ease the legal hiring process and fill the widening employment gap.
Currently, Thailand hosts an estimated three million migrant workers, primarily from Myanmar, Laos, and Cambodia, although not all are officially registered. Workers from Myanmar form the largest group, reportedly exceeding 2.9 million.
While short-term fixes are underway, Kriengkrai emphasised that automation will be key to solving Thailand’s labour issues in the future.
“Investing in automation can reduce costs and increase production efficiency, making industries less vulnerable to worker shortages.”
The FTI is also calling for urgent negotiations with Myanmar and Laos to import more legal workers, especially in labour-heavy industries such as food processing, agriculture, and construction.
Relations with Cambodia remain tense. Thai officials admit that restoring diplomatic ties may prove difficult in the near term. The FTI is also monitoring the fallout for Thai-owned businesses operating in Cambodia, particularly in the garment and footwear sectors, where Cambodian workers are a crucial part of the supply chain, reported Bangkok Post.
The instability has shaken investor confidence. The Thai Industries Sentiment Index fell to 86.6 points last month, its lowest level since October last year, following a score of 87.7 in June. The drop reflects industry worries over disrupted border trade and uncertainty surrounding a resolution to the political standoff.
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