FTI:5-10% of SMEs may close down by Q2

BANGKOK, January 2 (TNA) - The Federation of Thai Industries (FTI) says that approximately 5-10 per cent of small and medium-sized enterprises (SMEs) in Thailand may close down their businesses by the second quarter of this year, as they cannot afford to pay the 300-baht daily minimum wage, fully imposed nationwide as of January 1, 2013. FTI Vice Chairman Thaveekij Jaturajarernkul acknowledged on Wednesday that Thai SMEs, especially labour-intensive ones namely garment factories and those in agricultural and service sectors, have been affected by the government-sponsored 300-baht daily minimum wage. Thaveekij said that the affected SMEs had earlier informed the government that they would not be able to pay their workers at the new rate, as it would push up their production costs; while several overseas garment importers have already switched and bought cheaper garments from other rival countries and SME operators with enough capital have relocated their factories to neighbouring Laos, Cambodia and Vietnam. According to the FTI vice chair, factories in provincial areas have also relocated to Bangkok, where their owners can save several costs, including those of logistics, after the 300-baht daily minimum wage was equally effective nationwide. Meanwhile, FTI Secretary General Sommat Khunset urged the government to issue assistance measures to SME operators, including shouldering the portion of their increased wage to help them survived in their businesses and to specify a clear cut policy to help labour-intensive factories to survive, namely discouraging migrant workers to work in Thailand in the next five years. The FTI secretary-general also suggested that the government timely support Thai industries considering to relocate to neighbouring countries. (TNA)