APAC Supplement
Thailand’s universities face the growth test
As Thailand searches for new engines of economic growth, universities are being asked to build the talent, research and industry links needed to compete in a rapidly changing economy.
By Seb Murray
APAC Supplement
Thailand’s universities face the growth test
As Thailand searches for new engines of economic growth, universities are being asked to build the talent, research and industry links needed to compete in a rapidly changing economy.
By Seb Murray
15 October 2026
In brief
- Thailand is tasking its universities with driving national economic growth to overcome years of sluggish expansion.
- Backed by US$3.5 billion in funding, reforms target high-tech workforce training, research commercialisation and industry partnerships.
- Success requires institutions to adapt at digital speed, elevate English skills and balance basic with applied research.
Thailand is giving its universities a bigger role in an increasingly urgent drive to find new sources of economic growth.
The government has already begun turning that ambition into cold, hard policy: its draft Education for 2028-32 calls on universities to help build a “new growth engine” by developing the national workforce and lifting up productivity. The document was shaped with more than 50 higher education institutions, part of a wider push to produce graduates for rising industries and to forge deeper links with business and commercialise more academic research.
Those tasks are now pressing, as Thailand strives to break free from years of sluggish growth. Economic growth has hovered around two percent for several years running, a far cry from the breakneck pace of expansion of a few decades ago that made Thailand an “Asian tiger” and a booming export economy.
The Southeast Asian nation is now hunting for fresh growth drivers. And it is betting on areas such as data centres, high-value manufacturing, pharmaceuticals and biotechnology to provide the spark. That gives universities a bigger part to play: building the talent and research base which those industries increasingly rely on.
“Given the growth across the ASEAN region and investments from global businesses into the region, the opportunities for Thai universities to build global employer connections are rapidly increasing,” says Andrew Crisp, an international higher education consultant. “Whether that’s through graduate recruitment, executive education, research or other business connections.”
Turning academic strength into economic firepower
Thailand is thankfully not starting from scratch. Several of its institutions are already recognised globally; 13 are featured in the QS World University Rankings 2027, led by Chulalongkorn University based in the capital, Bangkok.
Nine Thai business schools also hold accreditation from AACSB, the US-based accreditation body.
“Thailand’s universities are increasingly connected to the world,” says Crisp.
Some of those roots run deep. “After all, Sasin School of Management was founded with Kellogg and Wharton as joint partners as far back as 1982,” he says, referring to two leading US management schools.
The challenge is turning those academic strengths into economic firepower. In July, Thailand’s Higher Education Minister Yodchanan Wongsawat called on universities to become “engines of the country’s new economy”, through commercialising research, building technology companies and forging stronger links with investors and industry.
Some of that machinery is already being built. Thailand now has 13 university holding companies — vehicles designed to turn academic research into commercial ventures — with more than $15 million in capital between them and investments in more than 110 businesses.
There is serious money behind the wider push, too. The government has earmarked 115 billion baht (~US$3.5 billion) for higher education in 2026 — nearly three-quarters of its overall budget for higher education, science, research and innovation.
Crisp sees scope for Thai universities to build deeper ties with multinational companies expanding across Southeast Asia. “Positioning the universities as regional experts, offering a gateway to the ASEAN business ecosystem, will be key going forward,” he says.
Others are inclined to agree. “Thailand should encourage stronger linkages between universities and the industry, through joint research, internships or other ways to foster a deeper exchange,” says Pavida Pananond, Professor of International Business at Thammasat Business School in Bangkok.
Research needs attention as well. Professor Pananond argues that Thai universities should push harder into basic research, which can lay the groundwork for innovation in the future, rather than concentrating too heavily on work with an immediate payoff.
“For science-related subjects, Thai universities should push for more basic research, not just applied ones,” Professor Pananond says.
Building the workforce
The government is making bets on the industries it sees will drive economic growth. Thailand ultimately wants to churn out more than 670,000 graduates for growth industries including advanced manufacturing, digital technology and biotech. It also wants to train at least 20,000 highly skilled workers in semiconductors, advanced electronics, AI and electric vehicles.
The nation needs graduates with the skills companies actually want — but those demands are changing at pace. Digital skills are already rising up the list. AI is changing the mix again as companies rethink jobs and automate some tasks, even entire roles.
That leaves universities chasing a moving target.
“Tomorrow’s labour market may look very different from the past; Thai universities will need to ensure graduates have the digital skills employers want and offer ways for graduates to update their skills given the rapid pace of technological change,” says Crisp.
Professor Pananond argues that universities need to sharpen “critical and analytical thinking skills that can be applied in research areas and everyday problem solving”.
English is another weak spot; Thailand ranks 116th out of 123 countries and regions for English proficiency, according to international language-training company EF’s index.
Catching up with AI
Artificial intelligence is also shaking things up by stripping away the premium once placed on simply knowing things.
“Factual knowledge, knowledge of what things are, is no longer constrained. AI knows all the facts,” says Ian Fenwick, Director of Sasin School of Management.
That leaves universities with the job of teaching students to question, judge and solve problems.
“The challenge for humans will be the need for nimbleness, agility and adaptability of mindsets,” Fenwick says. “The challenge for education will be to build those nimble, agile, adaptable minds.”
Thailand therefore needs universities that can keep refreshing what they teach as technology tears through the labour market, just as institutions elsewhere are grappling with the same problem.
“Rather than simply asking which existing jobs AI will replace or support, we should ask a more fundamental question: what should a job actually look like in an AI-enabled world?” says Fenwick.
“If the nature of work is being rebundled, then the knowledge, skills and experiences that universities and business schools provide must also be reconsidered,” he adds.
Sasin is, for one, developing “AI personas” that allow students to quiz characters in business cases and rehearse negotiations or presentations. It is also building AI “study buddies” designed to learn alongside students and give them tailored insights.
“AI provides a laboratory in which students can practice and hone their skills without endangering their business or its resources,” Fenwick says.
But keeping courses current is only part of the task at hand. Given that the skills employers need will keep changing, graduates need to be able to think on their feet too. Professor Pananond argues that “in all fields, a stronger push to foster analytical and critical thinking skills is instrumental”.
If Thailand wants to break into new industries, its universities will have to move with them.
“The challenge for universities, especially, is their speed of response and global engagement,” says Fenwick.
“As complex institutions that have evolved through a different era, it is often challenging for universities to operate at digital speeds,” he adds. “Yet that challenge has to be met if we are to be successful.”
Lessons from Malaysia
Thailand happily does not have to look far for a blueprint. Its neighbour has spent years pulling its universities closer to business while building a large international student market.
Malaysia regularly polls more than 1,000 employers on the universities producing the strongest graduates. It has also built a booming international education market, attracting more than 150,000 overseas students at present count, helped by relatively low costs and the widespread use of English.
“Getting the basics right in the country is the first step,” Crisp says.
Thailand has plenty to work with: globally ranked universities, billions in public funding and a growing push to make research into actual businesses. But there are holes to plug. Universities need tighter links with companies, stronger English and digital skills, more basic research and above all, more speed.
The university growth test
Universities cannot, of course, get Thailand’s economy humming again on their own. The factors blunting growth stretch far beyond the academy. They include an ageing and shrinking population, alongside crushing household debt that is squeezing consumption. Manufacturing, once a powerful growth engine, is also sputtering.
But universities can definitely help Thailand build the skills and research it needs to compete in the new industries it is chasing.
“Universities and business schools can play an important role, not simply in preparing people for existing jobs, but in helping reimagine how work, skills and education should be rebundled for the future,” says Fenwick.
MEET THE AUTHOR
Seb Murray is a journalist and editor who writes often for the Financial Times and has written for The Times, The Guardian, The Economist, The Evening Standard and BBC Worklife. He focuses on higher education and global business. He also produces a wide range of content for a range of corporate and academic institutions. Seb is also a recognised expert on higher education and speaks at international conferences.