‘Systemic crisis’ comes for schools

Falling rolls, Al, fierce competition a toxic brew for sector, write Jutamas Tadthiemrom and Kamolwat Praprutitum

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The education sector is facing a turning point as school closures — once limited — are increasingly signalling a systemic crisis.

The latest shutdown of Patai Udom Suksa School, a well-known large private school operating for 55 years, marks what many see as a wake-up call.

The school succumbed to a severe decline in tuition payments, with more than 60% of parents unable to afford fees, compounded by the country’s sharply falling birthrate.

SECTOR UNDER PRESSURE

Supaset Khanakul, president of the Association Board of Coordination and Promotion of Private Education (APPE), warns that if closures accelerate to 80-90 schools a year, urgent reform will be unavoidable.

At the moment around 30-40 schools close each year, or close to 1% of the total, which authorities consider manageable. But this figure masks deeper structural stress.

Before the Covid-19 pandemic, many private schools invested heavily to improve facilities and programmes, hoping to keep pace with Thailand’s objective to raise education standards by the 2028 PISA assessment.

Investments in English Programmes (EP), native-speaking teachers, and infrastructure averaged 100 million baht per school — yet the financial return has been modest at just 15-20%.

“New generations of school owners may find other business sectors more profitable,” said Mr Supaset. “Many family-run schools simply have no successors willing to take on the burden.”

Unlike public institutions, private schools must cover all operating and staff expenses — making them particularly vulnerable when enrolment dips.

“When student numbers fall, revenues collapse immediately while fixed costs remain,” he added. “We need government-backed safeguards or we will face a domino effect.”

Private school advocates raise these concerns through provincial education boards, urging coordinated responses before more schools collapse under financial pressure.