Natthaphon Luangwongpaisan criticizes Thailand’s nationwide minimum wage increase to 400 baht, advocating for region-specific adjustments to avoid inflation, layoffs, and economic challenges in less developed areas.
Criticism of Nationwide Wage Increase
Natthaphon Luangwongpaisan, Chairman of the Upper Northeastern Chamber of Commerce in Thailand, has openly criticized the government’s plan to implement a nationwide minimum wage increase to 400 baht per day, effective October 1. He argues that this approach overlooks the diverse economic conditions of various regions, suggesting that wage policies should be tailored to local circumstances instead of applying a uniform standard.
Regional Disparities and Economic Impact
Natthaphon highlights significant disparities in infrastructure between major cities like Bangkok and less developed provinces. He asserts that while metropolitan areas may support higher wages, smaller regions face challenges due to a lack of basic infrastructure, which can deter investment. He warns that a blanket wage increase could exacerbate economic struggles in these areas, potentially resulting in job losses and reduced business viability.
The Case for Gradual Adjustments
Furthermore, Natthaphon cautions against the risks of rapid wage increases, noting that such actions could lead to inflation. He advocates for gradual adjustments and a focus on improving worker skills instead of purely raising wages. This approach, he believes, would promote long-term sustainability for both workers and businesses, ensuring that wage policies align with local economic realities.
Source : Business Leaders Reject Nationwide 400 Baht Minimum Wage Hike
