The private sector is afraid that increasing the minimum wage to 400 baht nationwide will cause the index to fall.

Bangkok, F.T.I. fears that increasing the minimum wage to 400 baht nationwide will cause the index to fall, pointing out that it will aggravate "SMEs". Mr. Kriangkrai Thiennukul, Chairman of the Federation of Thai Industries (F.T.I.) revealed the results of the survey of the industrial confidence index in April 2024 at a level of 90.3, decreasing from 92.4 in March 2024, which was a decrease in every component. Both overall sales Overall orders Production volume Operating costs and operating results Confidence in the industrial sector has decreased as a result of a slowdown in domestic demand, such as automotive products, furniture, textiles, and clothing. Because the economic situation is uncertain. As a result, people are cautious about spending. Entrepreneurs, especially SMEs, are concerned about the policy of raising the minimum wage to 400 baht per day uniformly throughout the country. which will affect production costs Meanwhile, the end of the government's diesel price subsidy measures. As a result, energy costs and transportation costs will increase. At the same time, the drought problem is intensifying. This affects agricultural product production and causes water shortages. In addition, entrepreneurs are also affected by cheap products from foreign countries dumping into the Thai and ASEAN markets. However, in April there are few working days due to holidays. Continuing during the Songkran Festival, resulting in a decrease in product production. Exports slowed down as demand from trading partners decreased due to the uncertainty of the world economy. Including the impact of the conflict situation in the Middle East has intensified. The Russian-Ukrainian war has not yet been resolved. Affecting energy prices in the world market Including the problem of unrest in Myanmar that affects border trade. However, there are still positive factors in April from the arrival of foreign tourists during the Songkran festival. This has a positive effect on sales of products in the consumer product group. Meanwhile, the global market has seen increased demand for food products due to food shortages and drought problems. In addition, entrepreneurs with debt burdens have also benefited from the fact that many commercial banks and financial institutions have lowered their interest rates (MRR). 0.25% for a period of 6 months to help vulnerable customers. At the request of the Prime Minister From a survey of 1,268 entrepreneurs covering 46 industry groups of the Federation of Thai Industries (F.T.I.) in April 2024, it was found that the factors that entrepreneurs are increasingly concerned about include the world economy (79.4 percent), oil prices (100 percent). 56.6 each, domestic economy 56.4 percent, domestic political situation 40.2 percent, exchange rate (Exporter's perspective) The reference exchange rate is the baht against the US dollar at 39.5 percent, respectively. Factors that are of concern have decreased, including loan interest rates at 68.5 percent, respectively. Meanwhile, the index is forecast for the next 3 months to be at 98.3, decreasing from 100.8 in March 2024, with risk factors from severe drought problems. Affecting agricultural products and causing water shortage problems for consumption. including in the agricultural and industrial sectors At the same time, entering the low season of the tourism sector causes a decrease in foreign tourists. In addition, geopolitical risks from conflicts in the Middle East and the Russia-Ukraine war put pressure on the world economy and the export sector. However, there are still positive factors from Budget disbursement for 2024 will help stimulate the economy in the second half of the year. Propose that the government issue measures to help with energy prices for 3 months to reduce costs for entrepreneurs and reduce the burden of living expenses, such as fixing the price of diesel fuel not to exceed 30 baht per liter, giving discounts on electricity prices to SMEs, as well as issuing measures to promote Use alternative energy Delay the increase in the minimum wage fo r now. As the production sector continues to slow down, more than 3.18 million SMEs are still unable to bear the burden of rising costs. Points out that the increase in the minimum wage rate must be in accordance with the mechanism of the sub-committee considering the minimum wage rate for each province. and the Wage Committee (tripartite) by considering them in accordance with the economic factors of each province. and proposes to issue measures to encourage entrepreneurs to implement ESG concepts, including reducing greenhouse gas emissions, such as easing conditions for easier access to green loans, subsidizing expenses used to invest in environmental management technology. Reduce carbon credit certification fees by 50% in 2024, etc. Source: Thai News Agency