NESDC urges political parties to be discreet in making election promises
The National Economic and Social Development Council (NESDC) has urged political parties to be realistic when announcing their policies during the election campaign, as some of the policies could have long-term consequences for the economy and society.
The general election is tentatively scheduled for May 7, while political parties have been publicising their populist policies since last month.
“By promising to increase cash handout in the state welfare card scheme to 700-1,000 baht, parties should be able to clarify where they would get the money from,” NESDC secretary-general Danucha Pichayanan said on Friday.
“The scheme is already underfunded and has to rely on other sources like the Welfare for Grassroots Economy and Society Fund.”
Currently holders of the state welfare card, who are citizens earning less than 100,000 baht a year, are entitled for up to 300-baht monthly cash handout.
Danucha added a database of low-income earners should be created and their status updated yearly, as well as launch programmes to tackle poverty by areas and individually to reduce the number of people applying for the scheme.
Policy relating to minimum wage is another point of concern for the socio-economic development agency, as it could affect the decision of foreign investors.
“Currently only 2 million people in Thailand are earning minimum wage, and about half of them are migrant labour,” said Danucha. “Most of the skilled workers are already earning more than the minimum wage, as employers are willing to pay more for increased performance.”
Danucha said political parties should be extra careful when making a promise on minimum wage at the policy level, as it could trigger concern among foreign investors that Thailand is adjusting the wage across all sectors and all levels of employment.
“This could cause foreign companies to delay any investment plans and seek other destinations that have cheaper labour cost. The promise itself would have only minimal impact on Thai voters, as most of them already earn above the minimum level,” he explained.
