Increasing the minimum wage to 600 Baht per day will increase production costs by 70%, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said. The comment from representatives of the private sector came after the Pheu Thai Party made the proposal during the announcement of their election campaign yesterday. Thai Enquirer



Increasing the minimum wage to 600 Baht per day will increase production costs by 70%, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said.

The comment from representatives of the private sector came after the Pheu Thai Party made the proposal during the announcement of their election campaign yesterday.

The JSCCIB said small businesses that are still recovering from the economic impacts of the Covid-19 pandemic will not be able to cope with such a huge increase in production costs and eventually, they will have to shut down.

The JSCCIB said the current rates of Bt328-354 per day are already suitable for the current economic situation and there is a risk of a global economic recession next year.

The hike to Bt600 will also lower the country's competitiveness and decrease the inflow of foreign investments into the country, they added.

In terms of forecasts, the representatives of the private sector expect the Thai economy to expand by 3.2% in 2022 and between 3-3.5% in 2023.

The 2022 GDP forecast is based on assumptions that exports will expand by 7.25% and inflation will reach 6.2% by the end of the year.

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