The private sector has expressed its concern over the plan of the new Pheu Thai-led government to raise minimum wage to 300 baht per day across the board, saying that the measure will prompt an increase of 140 billion baht a year to the capital labor cost.
Thai Chamber of Commerce (TCC) Vice-Chairperson Pongsak Assakul said the domestic private sector and a number of foreign investors have already been worried about the huge impact from the upcoming government’s policy on the production cost.
Mr Pongsak viewed that small and medium businesses are likely to receive impacts the most. He suggested that the government enforce assistance packages in order to alleviate the consequences if it really wants to forge ahead with the minimum wage adjustment.
Apart from the aforementioned impact, it is worrying that Thai and foreign investors might shift their production base here to other countries which offer lower wages but have similar investment climate.
Nevertheless, the TCC vice-president stressed that the Thai business sector is ready to work and discuss with the new government closely for long-term benefits of the country.