Thai SMEs express concerns to Pita on proposed minimum wage hike
The Federation of Thai SME on Tuesday met the leader of the Move Forward Party, Pita Limjaroenrat, to discuss potential problems if the minimum daily wage is raised to 450 baht.
According to the the federation chairman, Sangchai Theerakulwanich, representatives of small and medium-sized enterprises (SMEs) were concerned about the potential cost burden such a wage increase would have on their business which is trying to recover from the prolonged Covid-19 crisis. SMEs currently employ 12 million people.
The federation has proposed five urgent measures to Pita, which can alleviate the problems faced by SMEs that are vital contributors to the Thai economy.
1. Measures to stimulate the grassroots economy and distribute income to local areas.
2. Measures to help SMEs lower production costs and to curb the rising cost of living for consumers whose purchasing power has fallen considerably through restructuring of the energy cost structure.
3. Measures to help SMEs obtain low-cost working capital loans, rehabilitate SMEs' non-performing loans, provide special privileges and promote the establishment of ann SME fund to help them recover and develop their business.
4. Measures to upgrade SMEs capabilities and their workforce through advanced technology, equipment and innovations.
5. Measures to revise laws and regulations that adversely affect SMEs.
Noratheb Boonkep, the federation's secretary-general, said that Thai SMEs are currently struggling to recover from the adverse impacts of the Covid crisis amid the higher electricity cost and rising cost of living that have weakened consumers' purchasing power. Higher cost of labour would hurt SMEs even more. Any proposal to increase labour costs must consider the current economic situation and go through a tripartite consultation process, Norathep said.
