BANGKOK, 28 March 2012 – Chairman of the Strategic Committee for Reconstruction and Future Development (SCRF) Virabongsa Ramangkura has suggested that Thai business entrepreneurs should turn to neighbouring countries in their search for lower labour cost.
During a meeting with the Deputy Managing Director of the International Monetary Fund (IMF), Mr. Naoyuki Shinohara, the SCRF Chairman pointed out that Thailand’s upcoming implementation of the 300-baht minimum wage hike policy is a justified measure to assist low-income earners. He added that it is time for entrepreneurs to consider relocating their production base to neighbouring countries where wage rates are still lower if they are impacted by the entry into force of the policy and are unable to adapt to the change.
Mr. Virabongsa said that Thailand is seeing a shortage of labour in many industries. Over 10 million illegal immigrants account for the majority of the country’s current workforce. Thus, Thailand must understand that it will not be able to contain all businesses within the country, especially those which rely mainly on labour workforce, such as textile, leather and SMEs. It is recommended that they shift their operation to countries with lower cost of labour. Meanwhile, businesses which intend to remain in Thailand must work hard to enhance their production capacity.