Raising the daily minimum wage to 450 baht, as promised in election campaign, addresses the cost of living, being pushed up by electricity, diesel and transportation prices, according to Move Forward party leader, Pita Limjaroenrat.
Pita said this policy could result in more disposable income for employees, so they could enhance their skills themselves. Foreign investors, however, have stated that next government should focus on long-term plans for changes in Thailand’s industries and address the competitiveness in Thailand’s labour market.
Industrial and educational transformation are the keys
Former Chairman of the Joint Foreign Chamber of Commerce, Stanley Kang, suggested that reforming the educational system could provide an environment in which more qualified talent could contribute their capabilities to Thailand’s labour market. This qualified talent could also attract more foreign investment to Thailand. Stanley also told ThaiPBS World that transformation of industries could develop new skills among their employees and generate additional income for them.
‘’Thailand still has a lot of people in rural area, especially in the agricultural sector. Thailand is a country also focused on agriculture. I believe there should be transformation of the system, including automation, to support farmer’s skills. When farmers have better income, they could solve more economic issues in rural areas by themselves,’’ he added.
Competitiveness in Thailand’s labour market
According to Pita, increasing the minimum daily wage is another opportunity for employees to upskill by themselves, using their disposable income. Stanley stressed, however, that the next government should establish a long-term strategy to generate qualified staff for Thailand’s labour market, rather than focusing on a short-term plan, such as a substantial increase in the minimum daily wage.
‘’One issue about reform of the educational system is whether the system produces the right talent for the market. This is what the next government should think about. When employees enter the corporate environment, employers think about how to provide the right training to fit into the modern business model”.
Political Stability is a significant factor
After living in Thailand for decades, Stanley admitted that political stability is a significant factor for foreign investors. This year’s general election is a key indicator for next government that the Thai people long for change in Thailand’s political landscape. At the same time, Stanley urged a clearer picture on next government as soon as possible.
‘’Political stability is one of those factors that foreign investors are concerned about. In addition to politicians, the private sector plays an important role in stabilising politics too. In the past, we have been through struggles in Thailand. The private sector has been robust in overcoming these challenges. Now politicians, the private sector and citizens should work together to make sure that our country is moving in the right direction.’’
The wage hike might cause uncertainty
Sharing Thai business leader’s concerns, the Chairman of Thai Chamber of Commerce, Sanan Angubolkul, told ThaiPBS World that a 20% rise in the minimum daily wage could lead to foreseeable trouble in Thailand’s economic system. ‘’If you increase from the present 350 baht to 450 baht, it’s an over 20% hike immediately. This would concern and worry all sectors, especially local enterprises. SMEs and foreign investors would be challenged by this policy as well,’’ added by Sanan.
Before this policy of raising the minimum daily wage gets implemented, Sanan suggested that employees, employers and government bodies in each province should discuss the potential impacts of this policy.
By Franc Han Shih, ThaiPBS World
