29 May 2023 Thai Economy Bolstering labor productivity at a faster rate than the increase in minimum wage rate may be an appropriate approach (Business Brief No.4005 Full Ed.) คะแนนเฉลี่ย คะแนนเฉลี่ย 5 stars 4 stars 3 stars 2 stars 1 star Raising the minimum wage rates will help bolster purchasing power of employees amid the rising cost of living. However, it will hurt labor-intensive businesses as they will incur additional operating costs, particularly those whose higher proportion of labor expenses is based on the minimum wage rates. If the minimum wage rates increase by approximately 30 percent and other labor expenses that are not based on the minimum wage rates increase as usual, for instance, by 5 percent, labor costs within the private sector will increase by roughly 16 percent on average. The agricultural, hotel, food service, construction and service businesses, including individuals hiring housekeepers, will incur additional labor costs by 18-28 percent because the higher proportion of wages in such businesses is based on the minimum wage rates. However, the net impact of higher labor expenses on their profitability will rest with their ability to manage income and costs, which may vary among businesses and enterprises. Labor problems are structural issues that are complex. They will likely persist even after the government raises the minimum wage rates, particularly when Thailand becomes an aged society. These issues along with changes in labor skills in alignment with business dynamism and the development of advanced technologies have led KResearch to take a view that bolstering labor productivity at a faster rate than the increase in the minimum wage rates may be an appropriate approach to help the business sector stay afloat and become sustainably competitive. If the government is the key advocate of the minimum wage rise, it should help shoulder expenses related to the increase in labor productivity while also implementing measures to help fragile businesses overcome these challenges, as well. View full article Login / Register Or Enter the code from the poll Annotation This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow. Thai Economy SpendingBeing employedEmployment Related Analysis View all 12 Mar 2018 Thai Economy Households are Cautious about Spending in 1Q18 According to a survey on household economic conditions for February, views of Thai households across the country toward economic conditions and the cost of living over the next three months remained unchanged. This is reflected in the 3-month Expected KR-ECI that was static at 47.1 in February. Households still had positive views toward income and employment, given the daily minimum wage rise slated for April 2018, while prices of some key agricultural produce, namely “Hom Mali” rice and cassava, have begun to increase. However, households were concerned about growing debt.... Read more 0 KB 0 KB 19 Feb 2018 Thai Economy Thai economy continues to grow in 2018 Growth of 4.0% is expected (Business Brief No.3727) The Thai economy in 4Q17 was buoyed by high growth in exports and tourism, while household consumption started to improve compared to... Read more 0 KB 0 KB 9 Feb 2018 Thai Economy Official launch of EEC: Key to Thailand’s Economic Development (Current Issue No. 2899 Full Ed.) The National Legislative Assembly (NLA) has approved the Eastern Economic Corridor (EEC) bill which is expected to boost investor confidence in large-scale, long-term investments by providing private investors additional incentives, namely non-tax privileges and a speedier process for licensing, in addition to the government's efforts to promote EEC investment through infrastructure projects and tax incentives. ... Read more 0 KB 0 KB 22 Jan 2018 Thai Economy Thai Household Debt May Fall to 77-78% of GDP in 2018 (Current Issue No. 2896) In 3Q17, Thailand's household debt fell from 78.4 percent of GDP – as recorded in 2Q17 – to 78.3 percent of GDP, which could be the res... Read more 0 KB 0 KB 18 Jan 2018 Thai Economy Economy Likely Unfazed by THB5-22 Daily Minimum Wage Hikes Nationwide (Business Brief No.3722 Full Ed.) The National Wage Committee recently agreed to raise the daily minimum wage to THB315.97, on average, or a range of THB308-330 across the... Read more 0 KB 0 KB 12 Jan 2018 Thai Economy Household sentiment toward economy continues to improve for 3 straight months, sending positive signal for private consumption in 1Q18 ... Read more 0 KB 0 KB View all