Case Study of Petrochemical Industry, THAILAND

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1 Future Skill Needs and Anticipation Case Study of Petrochemical Industry, THAILAND Paper presented at the 1 st Future Expert Skill Meeting Needs and on Anticipation Future Skill Needs and Anticipation in Selected Sectors and Industries in the ASIA and Pacific Region OVEC, Bangkok, THAILAND

2 I. Introduction 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 percent range seen earlier. In 2016, the economy grew by 3.2 percent. As for 2018, it forecasts GDP growth of percent, with exports seen up 5 percent.

3 Thailand GDP Annual Growth Rate Source: Trading Economics, 2017

4 II. Demographics and Labor Market Population The total population in Thailand increased from 27.4 million people in 1960 to million people in There are 2.2 million illegal and legal migrants in Thailand, including expatriates from developed countries.

5 Thailand Population Source: Bank of Thailand, 2017 Available from:

6 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 governmentfunded family planning program has raised awareness and led to a dramatic fall in birth figures.

7 Structure of THAI Labor The majority of population age is between 15 years and over accounted for million persons. Approximately, million of these people were in the labor force or available for work. The million were employed, 450 thousand were unemployed and 280 thousand were seasonally inactive labor force. While million were not in the labor force or not available for work

8 Table 1: Comparison aged 15 years and over of populations by labor force status Unit : million persons Labor force status Jan Feb Dec Jan Persons 15 years and over 1. Total labor force employed unemployed seasonally Not in labor force

9 Employed of the Labor Force In 2017, the total number of employed persons was about million, which and 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 million and non-agriculture sector decreased by 0.18 million.

10 Table 2: Comparison of number of employed persons by industry Unit : Million persons Industry Jan Feb Dec Jan Total Agricultural Agriculture, forestry and fishing Non-Agricultural Manufacturing Construction Wholesale and retail trade; repair of motor vehicles and motorcycles - Transportation and storage Accommodation and food service activities Financial and insurance activities Real estate activities Public administration defense and compulsory social security - Education Human health and social work activities Other service activities

11 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.

12 Number of Employed Persons classified by educational level Labor Force Status SEP 2017 Employment 37, None 1, Less than Elementary 7, Elementary 8, Lower Secondary 6, Upper Secondary 6, General/Academic 4, Vocational 1, Teacher Training Tertiary level (Undergraduate Postgraduate) 7, General/Academic 5, Vocational 2, Teacher Training Others Unknown

13 2016 Figure 4: Comparing of number and rate of unemployment by level of educational attainment in January 2016 and 2017

14 III Petrochemical Industry 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.

15 Innovation-Driven Economy w.youtube.co m/watch?v=em R0v9l3A1Q Source:

16 Petrochemicals Thailand's PTT Ethane Separation Plant Video: Fluor "InterPlas Thailand": Plastics & Petrochemical Manufacturing at Its Best

17 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.

18 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.

19 Good practices in TVET schoolworkplace collaboration 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).

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21 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.

22 PTTGC s involvement in the V-ChEPC Project goes beyond in such many ways as the following: providing financial support helping 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

23 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.

24 Skill Scope and Framework 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 is responsible for developing professional qualifications as a mechanism to enhance the progress and productivity of manpower in the country called as Thailand Professional Qualification Institute (TPQI).

25 TPQI This agency has worked with industry groups and stakeholders to identify the competencies required to develop the industry called 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".

26 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: 4 th and 5 th as the following:

27 Mechanical Maintenance Technician; 4th level 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 Pathways The 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.

28 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)

29 Mechanical Maintenance Technician; 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 5th level Technician in the petroleum and petrochemical industries of mechanical maintenance at 5 th level

30 Petrochemical workforce Thailand Number of Vocational Students in Petrochemical Year Diplo ma Total Gradu ate Stude nts Note Male : 105, Female : 26

31 External Factors and Conditions

32 Technology 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.

33 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.

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

35 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

36 Curriculum and Professional Qualifications - 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.

37 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.

38 The professional qualification framework

39 Training Course Guidebook 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.

40 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

41 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

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