According to Pita Limjaroenrat, the head of the Move Forward party, raising the daily minimum wage to 450 baht as pledged during the election campaign will help reduce the rising cost of living caused by rising prices for fuel, electricity, and transportation.
According to Pita, this approach can give workers more spare income so they can invest in their own skill development. However, foreign investors have emphasized that the future government should concentrate on long-term plans for changes in Thailand’s sectors and deal with the country’s labor market’s competitiveness.
The keys are industrial and educational reform.
Stanley Kang, a former chairman of the Joint Foreign Chamber of Commerce, proposed that changing the educational system may create a setting where more competent individuals might offer their skills to Thailand’s labor market. Additionally, this skilled manpower can encourage more international investment in Thailand. Additionally, Stanley told ThaiPBS World that changing businesses might help individuals gain new skills and increase their pay.
“Thailand still maintains a large rural population, particularly in the agriculture industry. Thailand is a nation that prioritizes agriculture. I think that in order to support farmer abilities, the system needs to be changed, especially through automation. When farmers earn more money, they will be able to address more economic problems in rural areas on their own, he continued.
The labor market in Thailand is competitive.
Pita contends that raising the minimum wage gives workers yet another chance to advance their skills independently and with their own money. Stanley emphasized, however, that rather than concentrating on a short-term strategy, such as a significant rise in the minimum daily wage, the future administration should adopt a long-term strategy to generate skilled personnel for Thailand’s labor market.
“Whether the educational system creates the right talent for the market is one concern with educational reform. The following administration ought to consider these issues. Employers consider how to deliver the appropriate training to fit into the contemporary business model as soon as employees enter the corporate environment.
Political stability is a crucial component.
Stanley acknowledged that political stability is an important consideration for foreign investors after living in Thailand for many years. The general election this year is a crucial sign that the Thai people want to see change in the country’s political system for the upcoming administration. Stanley recommended a fuller picture of the incoming government at the same time.
One of the things that worries international investors is political stability. The private sector, in addition to politicians, is crucial to maintaining political stability. In the past, Thailand has faced difficulties. These difficulties have been successfully overcome by the private sector. Now that our nation is headed in the right path, lawmakers, the corporate sector, and individuals should collaborate to ensure that it does so.
The wage increase could lead to uncertainty
Sanan Angubolkul, the chairman of the Thai Chamber of Commerce, shared the worries of Thai business leaders when he said that a 20% increase in the minimum daily wage may cause predictable problems for Thailand’s economic structure. “If you increase from the current 350 Baht to the 450 Baht, it is an immediate increase of more than 20%.” All industries would be concerned and alarmed by this, particularly local businesses. This strategy will also pose difficulties for SMEs and overseas investors,” Sanan continued.
Sanan stated that before this policy of raising the minimum daily wage is put into effect, employees, companies, and government authorities in each province should talk about the potential effects of this policy.
