Competing Frenzies for Expertise Unveiled

Reimagining Thailand's Approach to Court World-Class Talent

Competing Frenzies for Expertise Unveiled

In the modern world, talent trumps capitalism. This is a messageshouted out by business leaders, consultants, and HR execs for over a decade.

Klaus Schwab, founder of the World Economic Forum, proclaimed in 2012: "Capital is being outdone by creativity and the ability to innovate - and therefore by human talents - as the most essential factors of production. Just as capital replaced the manual trades during the industrial revolution, capital is now bowing down to human talent."

And in various corners of the globe, people were clearly listening in:

• Singapore rolled out its Tech Pass in 2020 to signal its ambitions of becoming Asia's Silicon Valley by granting "the tech titans of the modern era" unparalleled liberty to conduct business on the island.
• The UAE unveiled Golden Visas in 2019, targeting entrepreneurial prowess and strategic investment by offering holders renewable residency periods of 5-10 years and complete business ownership.
• Estonia became the first nation to issue Digital Nomad visas in 2020. These, in conjunction with Startup visas launched earlier, have been instrumental in transforming the tiny Baltic state into a startup haven and digital powerhouse. Last year, tech companies accounted for a greater share of Estonia's GDP (1.17%) than any other country, topping even Singapore (1.14%).

These are merely three examples. Governments across the globe, from Bermuda to Bali, Namibia to North Macedonia, and El Salvador to Sri Lanka, have increasingly come to understand that measuring success in the multipolar 21st century extends far beyond traditional concepts like cumulative capital or geopolitical influence. In the present day, establishing a competitive advantage calls for pioneering uses for new technology and AI, as well as substantial investments in a prized asset: genuine human talent.

As demand for this asset outstrips supply, its pursuit by forward-thinking governments and enterprises has evolved into a sharp, calculated game. Countries have fortified their positions by facilitating enticements like extended visas, advantageous tax rates, and 100% business ownership, only to escalate the stakes with highly desirable living conditions. These usually involve a combination of factors such as climate, culture, comfort, cuisine, and cost of living.

This isn't merely about enticing people from foreign lands who share their vision, knowledge, and experience. With this comes the tangible opportunity for economic growth,not least because of the stabilizing and revitalizing effects of increased taxable activity.

In a country that operates from a narrow tax base, Thailand simply cannot risk losing ground in the race for innovation. With only 15.4% of the 72 million Thai population comprising net taxpayers (see CHART), our capacity to generate revenue lags worryingly behind regional rivals like Vietnam (24%), Malaysia (27.5%), and Singapore (43.3%). An influx of global talent could represent a significant increase in revenue, potentially in the billions, which could be reinvested in transformative infrastructure projects while simultaneously lessening the tax burden on lower- and middle-income citizens.

|\ ||---|| Source: The International Survey on Revenue Administration, 2021 |

It is plausible to envision Thailand attracting 50,000 overseas experts within five years, generating an additional 15 billion baht annually. Imagine if we could lure as many as 5 million experts to our shores.

However, hammering out the conditions that compete with those offered in places like Estonia and Singapore will inevitably give rise to a host of thorny issues, so here is a preemptive list of five of the most pressing matters to address:

1. Streamlined Visas for Tech Leaders and Digital Nomads: These visas must be legally sound and provide holders with the security of long-term residency. They need to be acquired through a clear and straightforward application process that prioritizes experts in data technology and digital innovation
2. Smarter Tax Rates: While ensuring that the tax burden on Thai citizens does not increase, a simplified, flat tax rate (e.g. 15%) should be applied to foreigners in place of the current complex progressive system. This will enable prospective relocations to make more accurate financial projections and allow for comparisons between tax rates and costs of living in their home countries and competing destinations, leading to faster commitments from the global talent pool.
3. End-to-End Business Support: Creating agencies that provide streamlined, one-stop support for registering startups, obtaining licenses, and arranging visas and work permits will help demystify our often labyrinthine processes and eliminate numerous barriers and unknown elements that have deterred entrepreneurs in the past.
4. Equitable Access to Healthcare: Building on the world-renowned quality of Thailand's healthcare providers and cosmetic procedures, granting foreign workers equivalent medical care to that afforded to Thai nationals would further enhance our appeal.
5. Collaborative Integration Programs: Initiatives aimed at providing support in areas such as language, culture, and networking within local business communities would amplify the economic impact of foreign contributions.

At this juncture, it's crucial not to lose sight of the importance of honing our gaze inward, focusing on our homegrown talent.

This is the driving force behind the Strategic Project and Leadership Development (SPLD) programme established by the Charoen Pokphand (CP) Group. Conceived by CEO Suphachai Chearavanont for the purpose of identifying local talent and providing a platform for fostering creativity and innovation, the programme empowers earmarked future leaders to grow and thrive within the ranks of the global talent pool.

Open to participants across every business line and department in the CP Group, regardless of position or pay grade, the programme offers action-based training through real-world assignments. Expert guidance from senior CP executives and external consultants ensures that participants refine their decision-making, problem-solving, and critical-thinking skills by tackling challenges facing CP divisions[6].

A project-based approach stresses collaboration and adaptability, moving participants out of their comfort zones and requiring them to apply their learnings across various fields. Involving participants in a business process or project from start to finish exposes them to a broader organizational perspective, fostering a closer alignment between individual contributions and overall objectives[6].

In conclusion, it is crucial to balance our outward focus with unwavering attention to our domestic human capital, specifically the young generation. A harmonious blend of outreach to global talent and nurturing homegrown talent will make Thailand a breeding ground for dynamic interchanges of knowledge and innovation.

Such an approach will only elevate the attributes that already make Thailand so alluring: its vibrant and diverse cultural heritage, the beauty and rich biodiversity of its countryside and national parks, an enviable quality of life with a relatively low cost of living, excellent medical and healthcare facilities, and a geographical location that makes it a natural hub for ASEAN and the wider Asian continent.

If we commit to creating genuinely competitive policies, backed by world-class systems and infrastructure, Thailand genuinely has the potential to become the preferred second home of the global talent pool, as well as an even more desirable homeland for our own people.

• TAGS
• economy
• Charoen Pokphand Group
• Human Resources
• talents
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Source: The International Survey on Revenue Administration, 2021

1. As governments worldwide understand the importance of human talent in the 21st century, they are offering incentives such as extended visas, favorable tax rates, and business ownership to attract global talent, recognizing that this could lead to economic growth and increased revenue.
2. In Thailand, with only 15.4% of the population being net taxpayers, attracting global talent could significantly boost revenue, potentially in the billions, which could be reinvested in infrastructure projects and lessen the tax burden on lower- and middle-income citizens.
3. To stay competitive, Thailand needs to address issues such as streamlined visas for tech leaders and digital nomads, smarter tax rates, end-to-end business support, equitable access to healthcare, and collaborative integration programs to attract and retain global talent.
4. Meanwhile, the Charoen Pokphand (CP) Group focuses on cultivating local talent through programs like the Strategic Project and Leadership Development (SPLD) initiative, which empowers future leaders by providing action-based training and real-world experience.
5. Balancing the pursuit of global talent and nurturing homegrown talent will make Thailand a hub for knowledge exchange, fostering a cultural blend that showcases Thailand's vibrant heritage, low cost of living, quality medical facilities, and geographical convenience.
6. Governments and businesses must stay committed to harnessing the power of technology, investing in education and self-development, and prioritizing career development to ensure the continuous growth and innovation of their economies.
7. Ultimately, the combination of a world-class infrastructure, attractive personal finance opportunities, an enabling business environment, and a focus on human talent development will position Thailand as a preferred destination for both global talent and its own people.

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