Labour Minister Phiphat Ratchakitprakarn plans to boost the Social Security Fund's profitability by investing in international private companies, including Japanese corporations. The aim is to achieve 2.7 trillion baht in revenue and 5% growth next year.
Mr Phiphat said ministry officials and the secretary-general of the Social Security Office (SSO) had spoken to three Japanese fund management companies during an April 5-13 trip to discuss ways to increase the profit of the SSO's fund from 2.5% to 5% through investment in the East Asian country.
The officials visited three companies: Mitsubishi UFJ Financial Group, Japan's biggest financial institution; Sumitomo Mitsui Trust Bank, a real estate investment company; and Affirma Capital Managers Korea Limited, Japan's leading tax-free shop.
Mr Phiphat said these companies differ from each other, but the most important thing is how to achieve the policy goal of raising the 2.4 trillion-baht social security fund's profit to at least 5%, or 120 billion baht, per year.
The minister said the aim is to increase the fund's profit every year to strengthen the fund amid a rise in claimants as the population ages.
He added the fund's capital is expected to rise from 2.4 trillion baht last year to 2.6 trillion baht this year and 2.7 trillion baht next year and if the 5% goal is accomplished, the fund will not face expected insolvency in 2054.
He said the SSF's analysis department will consider whether to invest in the Japanese companies or anywhere else to ensure the best interests of workers in the social security system.
"As I've been assigned by the prime minister to oversee the Ministry of Labour, I'm responsible for finding a way to establish the ministry as an economic ministry to some degree.
"Most importantly, the Social Security Fund of the employees and workers under Sections 33, 39 and 40 must not face insolvency", said Mr Phiphat.