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.
Pita claimed that this idea might give workers more disposable income so they can further their own education. However, foreign investors have stated that the future administration should concentrate on long-term plans for transforming Thailand’s sectors and addressing the competitiveness of the labor market.
The keys lie in the restructuring of industry and education.
According to Stanley Kang, a former chairman of the Joint Foreign Chamber of Commerce, changing the educational system can create a setting where more educated individuals can contribute their skills to Thailand’s labor market. Additionally, more foreign investment in Thailand may result from this qualified talent. In addition, Stanley told ThaiPBS World that changing businesses might provide workers new skills and boost their pay.
Especially in the agriculture industry, Thailand still maintains a large population living in rural areas. Thailand is a nation that emphasizes agriculture as well. To encourage farmer abilities, I think the system should be changed, especially through automation. Farmers could address more economic problems in rural areas on their own if their incomes were higher, he continued.
Thailand’s labor market is competitive.
According to Pita, raising the minimum daily wage is another chance for workers to advance their skills independently using their own money. Stanley emphasized, however, that the future administration should develop a long-term plan rather than concentrating on a short-term approach, such as a significant rise in the minimum daily wage, to produce skilled workers for Thailand’s labor market.
The production of the appropriate talent for the market is one concern with educational reform. The following administration ought to reflect on this. Employers consider how to best train new hires to fit into the contemporary business model as soon as they enter the corporate world.
Political stability is a key element.
Stanley, who has spent his whole life in Thailand, acknowledged that political stability is a crucial consideration for international investors. The fact that the Thai people wanted political change is clear from this year’s general election, which will be important for the next administration. Stanley wanted a better picture of the new government to emerge as quickly as possible.
Political stability is one of the things that worries foreign investors. Along with politicians, the business sector is crucial in maintaining political stability. We have faced difficulties in Thailand in the past. In overcome these obstacles, the private sector has shown resiliency. To ensure that our nation is headed in the correct path, lawmakers, the corporate sector, and individuals should now collaborate.
Uncertainty may result from the pay increase.
The Chairman of the Thai Chamber of Commerce, Sanan Angubolkul, shared the worries of Thai business leaders by stating that a 20% increase in the minimum daily wage could cause foreseeable problems in Thailand’s economic structure. “An immediate gain of more than 20% results from going from the current 350 Baht to the 450 Baht. All industries would be concerned about this, particularly small businesses in the area. This approach will also provide difficulties for overseas investors and SMEs,” Sanan added.
Sanan stated that before this policy of increasing 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.