Survey:Thai SMEs concerned over impacts from wage hike

BANGKOK, September 6 (TNA) - A latest survey has found that local private business operators, particularly those of small and medium-sized enterprizes (SMEs), are worried over impacts from the Thai government's policy on raising daily minimum wages for workers nationwide to 300 baht, effective from January 1, 2013. Saowanee Thairungroj, President of Bangkok-based University of the Thai Chamber Commerce, acknowledged on Thursday that the government’s decision on the equal 300-baht daily minimum wage hike would boost domestic consumption but it would, on the other hand, affect up to 90 per cent of local SMEs. Saowa-ee said her university's recent survey also found that the local private sector wants the Thai government to help develop workers’ skills and capabilities; while complaining that they have not yet been benefited from the government’s policy on a cut in corporate income tax so far. Saowanee revealed that the local private sector also urged the Thai government to ensure liquidity for SMEs and allow goods prices to reflect their costs in line with the market mechanism, rather than implementing price control, so that local business firms can survive amid rising wage and fuel costs. Kobkarn Wattanavarangkura, Chair of Japan-based Toshiba Thailand Co, cautioned that the Thai government’s nationwide 300-baht daily minimum wage policy could prompt local business operators to increasingly apply machines and innovation in their production processes, noting, however, that Toshiba has not had any layoff plan as it is still able to adapt and has not been affected by wages. Meanwhile, the Ministry of Labour earlier reported that its recent survey, jointly conducted with the Thai Chamber of Commerce and the Federation of Thai Industries or FTI, found 99 per cent of local SMEs had been able to manage the increased daily minimum wage though conceding its negative impacts.(TNA)