Thai SMEs urge for postponement of wage hike policy

SURAT THANI, Oct 21 (TNA) - Small and medium-sized industrial operators have urged the Thai government to postpone the implementation of the daily minimum wage hike policy in 70 provinces across the country to the beginning of 2016, said Payungsak Chartsuthipol, president of Federation of Thai Industries (FTI). The FTI president said officials of the Joint Provincial Development Private Committee representing four southern provinces, including Chumphon, Surat Thani, Nakhon Si Thammarat and Phatthalung, held a meeting on Koh Samui resort early today and agreed that financial assistance must be given to SME industrial operators in order to boost their cash flow. And in order to boost the cash flow, they proposed that the government policy in raising daily minimum wage in 70 provinces, due to start next January 1, ought to be postponed to the beginning of 2016. Skills of the labour force should also be developed in order to meet the market demand along with an assistance given to SME operators who have been affected from the increase of the daily minimum wage as their production costs have risen, said Mr. Payungsak. On the existing palm oil prices which have dwindled in the country, the officials proposed that a private-run palm oil institution be set up to help planters, especially in provinces along the Gulf of Thailand. Palm oil annual production in Thailand fetches between 60-70 billion baht while there is a need to further develop its quality so that it could compete with neighbouring Malaysia, he said. Officials also discussed plans on stabilising natural rubber prices which have fallen sharply in the country and agreed to widen cooperation to all member countries of the Association of Southeast Asian Nations, except Brunei and Singapore. The widening of cooperation plan is aimed at controlling global demand and supply of natural rubber. (TNA)