BANGKOK, Thailand – Labor Minister Phiphat Ratchakitprakarn has pledged to explore measures to prevent a potential collapse of Thailand’s Social Security Fund (SSF) within the next decade due to insufficient funding. Despite the SSF currently holding 2.6 trillion baht and expected to grow to at least 4 trillion baht by 2034, concerns remain over its long-term sustainability. Thailand’s shrinking workforce and aging population pose challenges to the fund’s viability, with projections suggesting it could run out of money in 30 years.
To address these concerns, proposed measures include increasing contributions to the fund, extending the retirement age, and encouraging healthy elderly individuals to rejoin the workforce as part-time employees. The Labor Minister also suggested attracting more migrant workers to strengthen the workforce and encouraging them to participate in the social security system.
Investment strategies for the SSF may also need to shift, with a focus on boosting returns by increasing the proportion of investments in high-risk assets. Currently, 75% of the fund’s investments are in low-risk assets, despite the law allowing up to 40% in higher-risk investments. Discussions with the Social Security Office board are planned to explore the possibility of adjusting this investment strategy to achieve higher returns.
The Labor Ministry is organizing further discussions with international experts, including representatives from Singapore’s state investor Temasek and the International Labor Organization (ILO), to develop strategies that ensure the long-term sustainability of the SSF. The next session is scheduled for late October. (NNT)
