After discovering that more than 1 million children have dropped out of school early this year, the government of Thailand plans to undertake efforts to locate and help them return to school, government spokesperson Chai Wacharonketold a press briefing.
Mr Wacharonketold said the government will launch “Thailand Zero Dropout” a program to help these children return to school.
The government working with the Equitable Education Fund intends to use a network of associated agencies to locate students who have dropped out of the educational system.
Once the former students have been discovered, they want to assist them in re-entering the educational system, as well as providing them with a curriculum tailored to their specific needs so that they can attain their full potential.
Furthermore, the government intends to establish incentives to attract private businesses and enterprises to join, including much-needed scholarships.
The government expects to launch its Thailand Zero Dropout app this month to help identify such pupils and track the project’s progress.
“Prime Minister Srettha Thavisin is concerned about the nation’s future after discovering that 1.02 million children aged 3 to 18 had not enrolled in school. “He ordered all parties involved to resolve the issue as soon as possible,” Mr Chai stated.
The news comes after Sompong Chitradab, an education specialist and executive director of the Equitable Education Fund (EEF), stated on Monday that there is a severe issue with pupils leaving the educational system early this year.
According to the Equitable Education Fund, 1,025,514 children dropped out of school in 2023, more than doubling from the previous year. The prior average was approximately 500,000 per year. He stated that many children drop out instead of continuing to high school.
However, current data reveal that more children are leaving the system at various stages, such as transitioning from elementary to middle school or middle school to a vocational school.
According to the Equitable Education Fund, high education costs, record family debt and unpredictable politics that create uncertainty about the labor market, investments, and the economy are also to blame, since they lead to more families pulling their children out of school, Mr. Sompong stated.
Household Debt in Thailand
Thailand’s household debt is expected to exceed 16.9 trillion baht, or 91.4% of GDP, by the end of the year, with non-performing loans (NPLs) in the banking system likely to be around 152 billion baht, according to TMB Thanachart Analytics.
The 3.4% growth was lower than the previous year, owing to commercial banks’ stricter lending practices. However, credit card loans, leasing, and personal loans grew at a faster rate, increasing household debt exponentially.
Non-performing loans in the banking sector increased by 2.79% to around 152 billion baht, while outstanding auto lease repayments due in 1-3 months totaled over 170 billion baht, excluding lending by non-bank organizations and special financial institutions (SFIs).
According to Surapol Opasatien, chief executive of the National Credit Bureau, the amount of debt under legal procedure is rapidly approaching Thailand’s total household debt of 16 trillion baht and the country’s GDP of 17 trillion baht.
As of November 2023, there were 2,674,081 debt-related cases totaling 15.99 trillion baht. The creditors have already received verdicts in 1.05 million cases totaling around 15 trillion baht, but they have yet to begin the legal execution process, according to Mr. Surapol.
Household Debt leads to Debt Clinics
Approximately 691,000 cases, totaling 761 billion baht, are currently undergoing the legal execution process. Surapol added that this might result in the debtors being compelled to sell their homes, automobiles, or other possessions to pay off the loan.
He stated that the number of retail borrowers seeking assistance through the central bank’s Debt Clinic programme increased by 43% in the first quarter, indicating a greater determination among financially disadvantaged individuals to handle non-performing loans (NPLs).
According to Sukhumvit Asset Management (SAM), the country’s second-largest asset management business in charge of the Debt Clinic, a total of 20,267 individual debtors applied for the scheme meant to restructure unsecured loans, a 43% rise over the previous year’s first quarter.
Of these applicants, 14,311 were determined to be eligible for aid, marking a significant 58% increase year on year. Among them, 7,145 borrowers with combined principle loans totaling 1.62 billion baht chose to engage the debt restructuring process.
Currently, 46,720 unsecured loan debtors are undertaking debt restructuring, accounting for 129,959 loan accounts and 9.46 billion baht in outstanding debts.
On average, the loan line per borrower is between 5,000 and 200,000 baht, with an average monthly debt installments of 2,470 baht. The longest restructuring time is 92 months.
