BANGKOK, 7 September 2012 – A leading economist has voiced his support to the government’s implementation of the new minimum wage policy across the country, which he believes will not severely affect the business sector.
Deputy Professor Narong Phetprasert from Chulalongkorn University commented that the Central Wage Committee’s resolution to raise the daily minimum wage to 300 baht in 70 remaining provinces on January 1st, 2013, is a sound move.
Mr. Narong stated that a higher wage will help raise the quality of life of workers considerably, while contributing to a boost in domestic purchasing power and the local economy.
He believes that the wage rise will not significantly hurt the business sector because the higher wage will contribute to a 15-percent increase in the costs of products, not 40 percent as rumors have suggested.
He added that the industries that may be affected by this policy include those labor-intensive sectors, such as textile and furniture.