Tuesday, June 18, 2024

National minimum wage rise could harm SMEs

Thai government plans to raise daily minimum wage to 400 baht to boost consumption, despite concerns about negative impacts. Foreign chambers of commerce suggest gradual increase to support small businesses.

Raising Minimum Wage to Boost Consumption

One of the key initiatives by the Thai government to stimulate the economy is raising the daily minimum wage to 400 baht. This move is aimed at increasing domestic consumption and driving economic growth. Despite the government’s commitment to implement this policy by October, concerns have been raised about potential negative implications.

Challenges Faced by SMEs

In a recent discussion with Thai PBS World, Vibeke Lyssand Leirvag, Chairwoman of Joint Foreign Chambers of Commerce in Thailand, highlighted the concerns of various organizations regarding the wage hike. While the majority of chambers support the idea, there are worries about the ability of small and medium enterprises in less affluent provinces to cope with the sudden increase. It is feared that some SMEs may struggle to sustain their businesses and may be forced to shut down as a result.

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