TCC:Daily wage rise affects SME operators

BANGKOK, April 2 (TNA) - The Thai Chamber of Commerce has assessed that the country's daily minimum wage increase in first seven provinces, including Bangkok, to 300 baht, which has become effective since April 1, 2012, should affect operators of local small–and medium-sized enterprises (SMEs), as their production costs should soar by 60 per cent. Phumin Harinsuth, Vice Chairman of the Thai Chamber of Commerce, warned Monday that production costs of local SME operators employing a maximum of 25 workers should jump by 60 per cent immediately, projecting that about 100,000 SMEs, representing 5.6 per cent of total SMEs nationwide, would have to close down their businesses within six months due to the new daily minimum wage hike. Phumin acknowledged a survey conducted recently found that those who favoured the daily minimum wage rise were SMEs employing small amount of workers and using machines mostly instead; while those who opposed the government's wage hike claimed that there had been no measures in good place yet to further boost workers’ competitiveness. (TNA)