In a spirited defense of his government’s populist agenda, Prime Minister Srettha Thavisin reassured the public on Wednesday that the proposed increases to the daily minimum wage would “not be a disaster” for business owners.
Speaking at a business forum, the prime minister expressed dissatisfaction with the recent decision by a wage committee—comprising government officials, labor representatives, and businesses—to approve a modest 2.37 per cent hike in the minimum wage, ranging from 330 baht to 370 baht per day.
Thailand Prime Minister’s Stand on Minimum Wage Policy
“This government does not agree with that hike,” Prime Minister Srettha declared, emphasizing the need for Thai citizens to have employment opportunities that come with dignity.
The ruling Pheu Thailand party, led by Srettha, had campaigned prominently on the promise of raising the minimum wage to 400 baht a day, a commitment that is now being scrutinized in light of the recent wage committee decision.
Despite the discontent expressed by the prime minister, the labor minister hinted at a larger minimum wage proposal later this month, withholding specific details.
Srettha defended the Thailand government’s position by highlighting previous efforts to support businesses, such as reductions in electricity and energy prices. He echoed the sentiment that a well-implemented wage increase would not be detrimental to businesses but, rather, could have a positive impact.
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The business community, however, remains wary of rising costs and wages, expressing concerns about potential impacts on competitiveness amid sluggish economic growth. The Federation of Thai Industries has cautioned that businesses may bear the brunt of higher minimum wages alongside increased borrowing costs, potentially diminishing the competitiveness of Thai companies.
Against a backdrop of economic challenges, Thailand’s second-largest economy recorded a lower-than-expected growth rate of 1.5 per cent in the July-September quarter. The sluggish pace was attributed to weakened exports and subdued government spending, highlighting the delicate balance the government must navigate in addressing both the needs of the workforce and the concerns of businesses.