Minimum wage hikes unlikely to impact Thai goods pricing significantly

[webfact]

The Commerce Ministry’s planning unit has weighed in on the ongoing debate regarding the impact of minimum wage increases on domestic goods and services, suggesting that such hikes are unlikely to significantly influence the pricing landscape.

Poonpong Naiyanapakorn, the director-general of the Trade Policy and Strategy Office (TPSO), has argued that a rise in the daily minimum wage by an average of 2.37% to 345 baht (US$9.8) would only marginally increase inflation, bringing it to a range of 0.13 to 0.25%.

 

Poonpong conceded that the effect of such wage adjustments would differ across industries, particularly based on the levels of labour intensiveness. He proposed that industries with considerable labour costs might have to streamline their expenditures, while sectors with fierce competition might only witness negligible price modifications.

 

“Products and services that are most likely to feel the impact of the wage adjustment include processed food, rice, communication services, fresh vegetables, and fresh fruit.

 

by Alex Morgan

Picture courtesy of Nutthawat Wicheanbut

 

Full story: The Thaiger 2023-12-14

 

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[hotchilli]

4 hours ago, webfact said:

The Commerce Ministry’s planning unit has weighed in on the ongoing debate regarding the impact of minimum wage increases on domestic goods and services, suggesting that such hikes are unlikely to significantly influence the pricing landscape

Or population spending... sorry TAT they won't be booking domestic hoildays with their windfall.

[BritScot]

The minimum wage in Thailand is scandalous. When goods manufactured in Thailand cost more in Thailand than in the uk after export import says it all. Prices are not cheaper in Thailand infact often are more expensive so when people are paid £12 for a 12+ hour day compared to £12 an hour and contribution to a pension is not far off slave labour.