New Thai Govt's Populist Policies 'May Hit Growth Of Businesses'

[ajarnmark]

Providing these policies are put into effect, I predict inflation and unemployment.

and Mr. Economist, would you enlighten all of us why do you think so?

An increase in wage will never result in inflation or unemployment on its own and will never make the market destabilize. It would simply put more money in circulation which will result in devaluation of THB against foreign currency and hence making Thai exports more affordable and creates new jobs.

Completely opposite to what you predict. Go figure.

[dcutman]

Providing these policies are put into effect, I predict inflation and unemployment.

and Mr. Economist, would you enlighten all of us why do you think so?

An increase in wage will never result in inflation or unemployment on its own and will never make the market destabilize. It would simply put more money in circulation which will result in devaluation of THB against foreign currency and hence making Thai exports more affordable and creates new jobs.

Completely opposite to what you predict. Go figure.

Seems you are the great economist here, and it obvious you never had, or operated a buisness.

An increase in wage will never cause inflation?? Are you kidding me. That is like saying a sudden, drastic rise in fuel cost does not cause inflation.

Of course it does.

Labor, like fuel or anything else that one uses to operate a buisness, is called an expence to operate. Or operating expence witch ever you choose. When one's expenses go higher than normal and cuts to far into your margin of profit, you are forced to do one of many things. Raise prices,(inflation) cut an expence, (lay off people) or close your doors. (lay off everybody and cease to operate). Or move your operation to where your expences are not as great, and you can profit.(Cambodia Vietnam)

Completely opposite to what you say. Go figure.

Edited July 27, 2011 by dcutman

[dcutman]

Well, the article spurred some interesting comments on minimum wages and economics.

...

However, the real objective (of the article) is fear-mongering from the FTI business lobby to slow-down or prevent any change *perceived as detrimental to business interests* , albeit this article is quite tame compared to the norm in the USA.

So who out there feels that the minimum wage will start to change before the end of this year, or will it be next year, or will it be "never"??

First off I dont agree with the "Fear mongering" statement from this article.

I think they could raise it this year, but only 20 baht at the most. Next year another 20 baht and so on. If they do it any other way it would be another one of those policies that no buisness, (other than foriegn manufacturers) would abide bye. Seems however if this works out it will be a disaster. Just as all there other promices are going to be a disaster, or dissapointment.

Computer tablets for all primary students. Thats a joke. isint it? pretty worthless without the internet, and kids that actually want to learn.

150 billion baht high speed train to Chiang Mai. That will never happen. not in my lifetime anyway.

I dont know about this rice sceme if that goes through, not even sure how that will work,but it will be expensive.

This new sea wall or new city to protect BKK from sea level rise. Thats another one that will never happen. That one would cost several trillion baht.

I think the only ones gonna be without dissapoinment are the big coorporations. 10% reduction in taxes will be great for them. Of course there is going to cause a serious revenue issue for the government to opperate.

Is Thailand the only country in the world where politicians cant lie to get elected?

Edited July 27, 2011 by dcutman

[473geo]

Providing these policies are put into effect, I predict inflation and unemployment.

Maybe ...... but there will also be a HUGE HUGE reduction in poverty too.

Thailand is NOT the first country to have a minimum wage , you know, the greedy oligarchs have been screwing Thai people for hundreds of years now, general wealth and progress of society started in the west after such people were stopped from exploiting the VAST majority

The ONLY reason why Thailand is where it is now IS because of the low wages.Put up the wages and see what happens to all foreign investors, giant manufactures and tourism.

Of course after brain storming they will predict growth, did anyone else expect they will forecast total economy crash and higher unemployment.

I seriously doubt that the new government will ever admit that their election policy's were probably the worst idea ever for the economy, but best ides to get the votes

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

[whybother]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

[kuffki]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

Not only that, but if minimum wage is raised, other wages also need to be raised.

ie. "dream" investor paying 300 baht now, would have to pay even more. and in reality giants do not come to SE Asia because of the skilled labor.

PS. geo, can you name some investors who train and develop and pay above the minimum wage for unskilled/uneducated labor?

Edited July 27, 2011 by kuffki

[dcutman]

Providing these policies are put into effect, I predict inflation and unemployment.

Maybe ...... but there will also be a HUGE HUGE reduction in poverty too.

Thailand is NOT the first country to have a minimum wage , you know, the greedy oligarchs have been screwing Thai people for hundreds of years now, general wealth and progress of society started in the west after such people were stopped from exploiting the VAST majority

The ONLY reason why Thailand is where it is now IS because of the low wages.Put up the wages and see what happens to all foreign investors, giant manufactures and tourism.

Of course after brain storming they will predict growth, did anyone else expect they will forecast total economy crash and higher unemployment.

I seriously doubt that the new government will ever admit that their election policy's were probably the worst idea ever for the economy, but best ides to get the votes

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

You must have missed that part. Yingluck is going to reduce coorporate tax to 20% from 30%.

I totally agree there needs to be training involved in this wage hike some place. But TIT. This government or any government previous has never considerd this should be the first part of the plan to raise wages. I am sure companies would much more willing if they new thier employees at least had the basics.

[MarceloRune]

Perhaps with an increase in wage, will come an increase in effort? Many Thais I know. find it hard to justify giving anything close to 100% effort, because nothing changes when they do. Anything that would increase effort and skill in my workplace is a bonus and I would find it great that, just once, a Thai comes in for a job interview with skills that are real, not wishy washy, which then takes on average another 6 months to train in-house.

Edited July 28, 2011 by MarceloRune

[SICHONSTEVE]

Providing these policies are put into effect, I predict inflation and unemployment.

Maybe ...... but there will also be a HUGE HUGE reduction in poverty too.

Thailand is NOT the first country to have a minimum wage , you know, the greedy oligarchs have been screwing Thai people for hundreds of years now, general wealth and progress of society started in the west after such people were stopped from exploiting the VAST majority

You just don't get it, do you!!!!

It won't prosper the poor at all, in fact they will be worse off than they are now as they will be the ones paying for these dishonest and unrealistic pre-election promises. They will have to pay more for their fuel and food (probably 90% of their household budget) - unemployment will rise inexorably as SME close their business'es in droves. Their agricultural policies are unworkable and unaffordable. Exporters will be hit by higher inflation making the baht stronger (just think how much of that is rice and food in general).

Look at everything at face value and you will be fooled into believing that they will be the ones to benefit!!!

I will tell you who the REAL winners will be and that is none other than 'big business' - if they stick to another unwise election pledge of bringing the business rate down (in 2 stages) from 30% to 20%. The real "stick-in-the-throat aspect is that most 'big business' lies in Bangkok - the only place that the 300 baht minimum wage is expected to be applied. Just how ironic is that!!! Talk about a "double whammy"

If she can extract her way out of this then she will earn my admiration and I shall award her the honour of being known as Khun "Houdini" Yingluck!!!! .

Over to you baby sister, and good luck - you will undoubtedly need it.

[dcutman]

I have found the cost of some of these PT promises. Of course niether party mentioned the cost or where the money is going to come from. I did not relise it was such an extensive list. I do remeber they did say they could shuffle monies around to pay for them. Here is what I found so far.

PUEA THAI PARTY

Policy pledges include:

- Guarantee a uniform daily minimum wage of 300 baht ($10) throughout the country; this would rise to 1,000 baht by 2020.

- Raise salaries of civil servants and state workers

- Universal medical care; patients pay 30 baht ($0.97) per visit 65 billion year

- Credit cards for farmers to buy fertilizer and other things needed for production; rice intervention scheme with a guaranteed 15,000-20,000 baht per tonne for unmilled rice. 450 billion a year (just for the rice)

- Three-year household debt moratorium for those with up to 500,000 baht in debt, focusing on teachers, farmers and civil servants; debt restructuring for those with more than 500,000 baht.

- Starting monthly salary of 15,000 baht ($500) for new university graduates, up from the current 10,640 baht.

- Free tablet computers for about 800,000 new school children each year. Puea Thai says these would cost 5,000 baht ($160) each and operate with open-source software. 4 billion a year

- Corporate tax cut from 30 percent to 23 percent in first year, 20 percent in second year. 150 billion a year

- Tax cuts for buyers of first homes and first cars

- A flat 20 baht fare for all 10 mass transit rail lines in Bangkok

- Promote Bangkok's Suvarnabhumi airport as regional hub. I think it already is 0

- High-speed rail lines linking key cities in the north, northeast, east and upper south regions. Trains to link with outskirts of Bangkok and eastern tourism, industrial hubs. At least 3 trillion (150billion a year over 20 years)

- Annual rural village development funds of between 300,000 and two million baht for each of Thailand's 73,000 villages. 55 billion a year (750,000 per average)

- Monthly welfare allowance of 600 baht for elderly citizens of over 60, rising to 700 baht at 70, 800 baht at 80, and 1,000 baht at 90. 17 billion year

- Free Wi-Fi and Internet connections in public places.

- Build 30-km (18-mile) anti-flooding levees to protect Bangkok and satellite towns from tide surges around the Gulf of Thailand

- Special administrative status for southern Muslim provinces

- Campaign to wipe out illicit drugs

Everything in Thai Baht. All numbers came from fact checks on the net. Not sure how accurate. This is all I could find so far. If anybody can find missing price tags, please add to.

Total so far 891 Billion THB a year.

Thailands GDP 2 trillion THB

Edited July 29, 2011 by dcutman

[473geo]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

Legalise gambling, do not allow off shoring, tax at 8% on the baht, excellent additional revenue stream for the government, create employment........there are always solutions out there, you just gotta know where they are.....

Edited July 29, 2011 by 473geo

[473geo]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

Not only that, but if minimum wage is raised, other wages also need to be raised.

ie. "dream" investor paying 300 baht now, would have to pay even more. and in reality giants do not come to SE Asia because of the skilled labor.

PS. geo, can you name some investors who train and develop and pay above the minimum wage for unskilled/uneducated labor?

Once training commences,you quickly have a semi skilled workforce which deserves above the minimum wage, futher training and development takes people to supervisor roles.......if you are good, only months.....so what is this about unskilled/uneducated labour........ah that will be the companies who have no interest in anything but a cheap labour source

Just one more point why if the minimum wage is raised do "other wages need to be raised" for what reason? we have already heard how the current minimum wage is more than adequate to live on...... according to Tvisa experts.........so anybody receiving more than 150 baht a day above the current minimum would simply not need any more according to Tvisa experts of course...............unless the people higher up the payscale feel there should be a margin of differential...but life is tough, maybe they will have to take a bit less in order for the production labourforce to feel valued.....after all if companies cannot afford the additional burden of 100 baht a day for the lower paid workers....it would follow that those higher up the chain have no chance of a substantial payrise.......but then......it is possible they are on a bonus.....by keeping wages low they meet their bonus profit margin.......but of course that couldn't possibly have any bearing on why business is protesting....

,

[whybother]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

Legalise gambling, do not allow off shoring, tax at 8% on the baht, exellent additional revenue stream for the government, create employment........there are always solutions out there, you just gotta know where they are.....

Yes ... you're very good at coming up with solutions, and I don't deny there are lots more solutions out there. But, the government aren't talking about how they are going to fund their promises.

The government are promising reductions in corporate tax to assist businesses. Ofcourse, that won't make much difference for businesses that only make a small profit, or with the increase in wages, maybe making a loss. And it won't help the government, because they don't pay tax but they still need to increase the wage.

[whybother]

Once training commences,you quickly have a semi skilled workforce which deserves above the minimum wage, futher training and development takes people to supervisor roles.......if you are good, only months.....so what is this about unskilled/uneducated labour........ah that will be the companies who have no interest in anything but a cheap labour source

Just one more point why if the minimum wage is raised do "other wages need to be raised" for what reason? we have already heard how the current minimum wage is more than adequate to live on...... according to Tvisa experts.........so anybody receiving more than 150 baht a day above the current minimum would simply not need any more according to Tvisa experts of course...............unless the people higher up the payscale feel there should be a margin of differential...but life is tough, maybe they will have to take a bit less in order for the production labourforce to feel valued.....after all if companies cannot afford the additional burden of 100 baht a day for the lower paid workers....it would follow that those higher up the chain have no chance of a substantial payrise.......but then......it is possible they are on a bonus.....by keeping wages low they meet their bonus profit margin.......but of course that couldn't possibly have any bearing on why business is protesting....

Are you suggesting that everyone already being paid between the current minimum and 300 baht should now only get the new minimum?

What about all the training they have done or experience they have gained to get those increases above minimum wage? Is that no longer any value?

[473geo]

Once training commences,you quickly have a semi skilled workforce which deserves above the minimum wage, futher training and development takes people to supervisor roles.......if you are good, only months.....so what is this about unskilled/uneducated labour........ah that will be the companies who have no interest in anything but a cheap labour source

Just one more point why if the minimum wage is raised do "other wages need to be raised" for what reason? we have already heard how the current minimum wage is more than adequate to live on...... according to Tvisa experts.........so anybody receiving more than 150 baht a day above the current minimum would simply not need any more according to Tvisa experts of course...............unless the people higher up the payscale feel there should be a margin of differential...but life is tough, maybe they will have to take a bit less in order for the production labourforce to feel valued.....after all if companies cannot afford the additional burden of 100 baht a day for the lower paid workers....it would follow that those higher up the chain have no chance of a substantial payrise.......but then......it is possible they are on a bonus.....by keeping wages low they meet their bonus profit margin.......but of course that couldn't possibly have any bearing on why business is protesting....

Are you suggesting that everyone already being paid between the current minimum and 300 baht should now only get the new minimum?

What about all the training they have done or experience they have gained to get those increases above minimum wage? Is that no longer any value?

Not the way I would run a business, but these companies are claiming they will struggle to offer the minimum wage.....so surely any other expectations cannot be met.....after all owners and shareholders must be encouraged to retain an interest and investment.........unless of course there are those in the market for investments that would take a bit less....the SET would suggest this may be the case.

Edited July 29, 2011 by 473geo

[473geo]

I suppose one way would be to lower the corporate taxes, that way you encourage long term investment from companies who can afford to pay above the minimum wage and are not exploiting your labour force, but actually training, developing and educating them in good business practice..........

One problem with that is that the government has to raise the wage it pays it's employees too. And with less income (ie taxes), it will be a double hit.

Legalise gambling, do not allow off shoring, tax at 8% on the baht, exellent additional revenue stream for the government, create employment........there are always solutions out there, you just gotta know where they are.....

Yes ... you're very good at coming up with solutions, and I don't deny there are lots more solutions out there. But, the government aren't talking about how they are going to fund their promises.

The government are promising reductions in corporate tax to assist businesses. Ofcourse, that won't make much difference for businesses that only make a small profit, or with the increase in wages, maybe making a loss. And it won't help the government, because they don't pay tax but they still need to increase the wage.

We cannot know how the government will fund their promises I agree....they are not established yet....I would expect to see a VAT rise....thus you recover from the high purchase population and the lower paid benefit because the percentage of VAT increase on their purchases is less than their percentage rise to the minimum wage.....just an opinion.....like you say we don't know yet

[whybother]

Not the way I would run a business, but these companies are claiming they will struggle to offer the minimum wage.....so surely any other expectations cannot be met.....after all owners and shareholders must be encouraged to retain an interest and investment.........unless of course there are those in the market for investments that would take a bit less....the SET would suggest this may be the case.

These companies are claiming they will struggle based on the reality that they will not only need to increase wages for those on minimum wage, but also pay increases to those currently being paid above minimum wage. A trained or experienced person currently getting more than the minimum wage (and even above the new minimum) will expect similar increases to those on the old minimum.

Also, what about SME's that might just be paying the owners a salary? They might not make a profit to take advantage of the reduced tax. They just need to take a hit on their personal salary.

[whybother]

We cannot know how the government will fund their promises I agree....they are not established yet....I would expect to see a VAT rise....thus you recover from the high purchase population and the lower paid benefit because the percentage of VAT increase on their purchases is less than their percentage rise to the minimum wage.....just an opinion.....like you say we don't know yet

Does the PTP have "a mandate" to increase VAT?

In most countries, the funding of campaign promises is usually part of the campaign. Would people have voted for the PTP because if the increased minimum wage if they were told that the lowest tax bracket was going to be raised from 0% to 5%? Ofcourse, they aren't suggesting that, but they haven't suggested anything to fund their promises yet.

[473geo]

Not the way I would run a business, but these companies are claiming they will struggle to offer the minimum wage.....so surely any other expectations cannot be met.....after all owners and shareholders must be encouraged to retain an interest and investment.........unless of course there are those in the market for investments that would take a bit less....the SET would suggest this may be the case.

These companies are claiming they will struggle based on the reality that they will not only need to increase wages for those on minimum wage, but also pay increases to those currently being paid above minimum wage. A trained or experienced person currently getting more than the minimum wage (and even above the new minimum) will expect similar increases to those on the old minimum.

Also, what about SME's that might just be paying the owners a salary? They might not make a profit to take advantage of the reduced tax. They just need to take a hit on their personal salary.

By SME's do you mean Shoestring Mediumsize Entities? I have already stated I admire small business for getting in there, providing alternative, and pitching against the big boys, unfortunately Thailand is changing and the big boys in many cases have arrived, as they are all over the world, the transition will not be pleasant, in my eyes probably not an improvement, but money talks, and if big business sells your commodity cheaper, the minimum wage isn't what will drive you out of business, not having the ability to pitch in a new niche market will probably finish you.

[whybother]

By SME's do you mean Shoestring Mediumsize Entities? I have already stated I admire small business for getting in there, providing alternative, and pitching against the big boys, unfortunately Thailand is changing and the big boys in many cases have arrived, as they are all over the world, the transition will not be pleasant, in my eyes probably not an improvement, but money talks, and if big business sells your commodity cheaper, the minimum wage isn't what will drive you out of business, not having the ability to pitch in a new niche market will probably finish you.

SME's are the life blood of industry and employment in all countries. It would be economic suicide for a government to make a large percentage of them go out of business.

[473geo]

We cannot know how the government will fund their promises I agree....they are not established yet....I would expect to see a VAT rise....thus you recover from the high purchase population and the lower paid benefit because the percentage of VAT increase on their purchases is less than their percentage rise to the minimum wage.....just an opinion.....like you say we don't know yet

Does the PTP have "a mandate" to increase VAT?

In most countries, the funding of campaign promises is usually part of the campaign. Would people have voted for the PTP because if the increased minimum wage if they were told that the lowest tax bracket was going to be raised from 0% to 5%? Ofcourse, they aren't suggesting that, but they haven't suggested anything to fund their promises yet.

As we cannot know yet, I will allow you to speculate on the response of the public to your speculation.....I offered an opinion no more no less......I understand there is a133 billion surplus and only 45billion will be utilised to hold inflation by being allocated to fuel price containment.......but this is only hearsay.....and I do not run the country

[473geo]

By SME's do you mean Shoestring Mediumsize Entities? I have already stated I admire small business for getting in there, providing alternative, and pitching against the big boys, unfortunately Thailand is changing and the big boys in many cases have arrived, as they are all over the world, the transition will not be pleasant, in my eyes probably not an improvement, but money talks, and if big business sells your commodity cheaper, the minimum wage isn't what will drive you out of business, not having the ability to pitch in a new niche market will probably finish you.

SME's are the life blood of industry and employment in all countries. It would be economic suicide for a government to make a large percentage of them go out of business.

why? you have 500,000 small garages who are struggling to make a living, cannot afford the minimum wage.........then let us say a major company moves in, I don't need to give any publicity, not quite the same, but they will in effect employ the same amount of people......if there is a demand in the market place.....as you know people can join, or set up a niche market service that perhaps delivers an improvement on the corporate product....it is the way of the modern world.....the man who owns a car lot has to outsource his finanace deals, by this fact alone he is behind the major corporate companies in what he can offer......so he'd better think about how to retain and attract customers another way.....or he sinks

[whybother]

SME's are the life blood of industry and employment in all countries. It would be economic suicide for a government to make a large percentage of them go out of business.

why? you have 500,000 small garages who are struggling to make a living, cannot afford the minimum wage.........then let us say a major company moves in, I don't need to give any publicity, not quite the same, but they will in effect employ the same amount of people......if there is a demand in the market place.....as you know people can join, or set up a niche market service that perhaps delivers an improvement on the corporate product....it is the way of the modern world.....the man who owns a car lot has to outsource his finanace deals, by this fact alone he is behind the major corporate companies in what he can offer......so he'd better think about how to retain and attract customers another way.....or he sinks

Is this one of your "I write it, but I don't really believe it" posts?

There is a lot of business between the small garage and a major company. Where does a major company come from?

The minimum wage increases offset by tax cuts on profits push things in favour of the large companies. There needs to be a balance between supporting SMEs and supporting large businesses.

[473geo]

SME's are the life blood of industry and employment in all countries. It would be economic suicide for a government to make a large percentage of them go out of business.

why? you have 500,000 small garages who are struggling to make a living, cannot afford the minimum wage.........then let us say a major company moves in, I don't need to give any publicity, not quite the same, but they will in effect employ the same amount of people......if there is a demand in the market place.....as you know people can join, or set up a niche market service that perhaps delivers an improvement on the corporate product....it is the way of the modern world.....the man who owns a car lot has to outsource his finanace deals, by this fact alone he is behind the major corporate companies in what he can offer......so he'd better think about how to retain and attract customers another way.....or he sinks

Is this one of your "I write it, but I don't really believe it" posts?

There is a lot of business between the small garage and a major company. Where does a major company come from?

The minimum wage increases offset by tax cuts on profits push things in favour of the large companies. There needs to be a balance between supporting SMEs and supporting large businesses.

Support the farmers, do you realise how many 'small business' interests are affiliated to farming, always amazes me that people ridicule the support for good rice prices, given that farming and the associated industries, make up circa 40%+ of the working population (educated guesstimate) then one would expect full on support for rice subsidy from all the medium sized industries........unless of course it becomes either or....then I guess they would prefer a direct subsidy.....because the reality is they are using cheap labour to make products that they can make major profit on abroad.......well here is another one for you, as the major stores diversify from groceries, to clothes,electrical goods,shoes, trainers,sports equipment....shall I go on....well let me tell you prices are tumbling and they are cutting margins for the SME business......as I say....won't be the extra 100 baht a day that smothers theSME's

[473geo]

SME's are the life blood of industry and employment in all countries. It would be economic suicide for a government to make a large percentage of them go out of business.

why? you have 500,000 small garages who are struggling to make a living, cannot afford the minimum wage.........then let us say a major company moves in, I don't need to give any publicity, not quite the same, but they will in effect employ the same amount of people......if there is a demand in the market place.....as you know people can join, or set up a niche market service that perhaps delivers an improvement on the corporate product....it is the way of the modern world.....the man who owns a car lot has to outsource his finanace deals, by this fact alone he is behind the major corporate companies in what he can offer......so he'd better think about how to retain and attract customers another way.....or he sinks

Is this one of your "I write it, but I don't really believe it" posts?

There is a lot of business between the small garage and a major company. Where does a major company come from?

The minimum wage increases offset by tax cuts on profits push things in favour of the large companies. There needs to be a balance between supporting SMEs and supporting large businesses.

Major companies put out to SME's and that is one area where such business may suffer, the major corporates procurement sector is ruthless, they negotiate to leave limited margin for the producer in order to maintain their profit levels and competitive edge........any SME that has a say three year contract to supply product may well have failed to build into the module a major lift in the minimum wage, unfortunate, another part of the learning curve. While I agree this could well cause a loss of margin for the remaining duration of the contract, do we blame the government for putting up the minimum wage to a reasonable level, the major corporate purchaser for driving down the margin for the producer, or the SME management for being short sighted and not ensuring sufficient margin.

[wintermute]

I think the Thai government ripping off other governments might effect "growth of business" more than local politics.

[whybother]

Major companies put out to SME's and that is one area where such business may suffer, the major corporates procurement sector is ruthless, they negotiate to leave limited margin for the producer in order to maintain their profit levels and competitive edge........any SME that has a say three year contract to supply product may well have failed to build into the module a major lift in the minimum wage, unfortunate, another part of the learning curve. While I agree this could well cause a loss of margin for the remaining duration of the contract, do we blame the government for putting up the minimum wage to a reasonable level, the major corporate purchaser for driving down the margin for the producer, or the SME management for being short sighted and not ensuring sufficient margin.

"do we blame the government for putting up the minimum wage to a reasonable level" - Who else can you blame?

And this isn't just about raising minimum wages. No one is saying don't raise minimum wages.

It's about raising minimum wages by such a large percentage in such a short time. The tax offset will help some companies, but only those that are making enough profit after taking in all the extra costs.

[473geo]

Major companies put out to SME's and that is one area where such business may suffer, the major corporates procurement sector is ruthless, they negotiate to leave limited margin for the producer in order to maintain their profit levels and competitive edge........any SME that has a say three year contract to supply product may well have failed to build into the module a major lift in the minimum wage, unfortunate, another part of the learning curve. While I agree this could well cause a loss of margin for the remaining duration of the contract, do we blame the government for putting up the minimum wage to a reasonable level, the major corporate purchaser for driving down the margin for the producer, or the SME management for being short sighted and not ensuring sufficient margin.

"do we blame the government for putting up the minimum wage to a reasonable level" - Who else can you blame?

And this isn't just about raising minimum wages. No one is saying don't raise minimum wages.

It's about raising minimum wages by such a large percentage in such a short time. The tax offset will help some companies, but only those that are making enough profit after taking in all the extra costs.

A rise in the minimum wage pushes more disposable income into the purchasing sector, so if the SME's have a good product the market will probably be able to absorb a price increase....

Limited inflation can promote growth in the economy

Tell me are you able to release the percentage and timing of the minimum wage rises you appear to be privy to.......I doubt it will be an immediate full on rise......but if it suits your political standing to hold the new government to this promise......then I feel you are not discussing the possible effect of a realistic minimum wage increase but rather angling to accuse the government of either causing hardship/unemployment/failed business........or not delivering on their promise........

For me as I have stated previously I think the government will build the minimum wage as quickly as is reasonably possible.....people may get impatient but I think as long as the promise is delivered this term the government will be ok.

[kuffki]

Major companies put out to SME's and that is one area where such business may suffer, the major corporates procurement sector is ruthless, they negotiate to leave limited margin for the producer in order to maintain their profit levels and competitive edge........any SME that has a say three year contract to supply product may well have failed to build into the module a major lift in the minimum wage, unfortunate, another part of the learning curve. While I agree this could well cause a loss of margin for the remaining duration of the contract, do we blame the government for putting up the minimum wage to a reasonable level, the major corporate purchaser for driving down the margin for the producer, or the SME management for being short sighted and not ensuring sufficient margin.

"do we blame the government for putting up the minimum wage to a reasonable level" - Who else can you blame?

And this isn't just about raising minimum wages. No one is saying don't raise minimum wages.

It's about raising minimum wages by such a large percentage in such a short time. The tax offset will help some companies, but only those that are making enough profit after taking in all the extra costs.

A rise in the minimum wage pushes more disposable income into the purchasing sector, so if the SME's have a good product the market will probably be able to absorb a price increase....

Limited inflation can promote growth in the economy

Tell me are you able to release the percentage and timing of the minimum wage rises you appear to be privy to.......I doubt it will be an immediate full on rise......but if it suits your political standing to hold the new government to this promise......then I feel you are not discussing the possible effect of a realistic minimum wage increase but rather angling to accuse the government of either causing hardship/unemployment/failed business........or not delivering on their promise........

For me as I have stated previously I think the government will build the minimum wage as quickly as is reasonably possible.....people may get impatient but I think as long as the promise is delivered this term the government will be ok.

Arise in minimum wage = a rise in prices, so rest assured there will be no more disposable income, if anything less disposable income. Then, there will also be more unemployment which again means less disposable income.

Then there will be higher prices, meaning less spending, also meaning less exports, also meaning less jobs and again means less income.

Wages usually rise along with the prices, not other way around.

[whybother]

A rise in the minimum wage pushes more disposable income into the purchasing sector, so if the SME's have a good product the market will probably be able to absorb a price increase....

Limited inflation can promote growth in the economy

Tell me are you able to release the percentage and timing of the minimum wage rises you appear to be privy to.......I doubt it will be an immediate full on rise......but if it suits your political standing to hold the new government to this promise......then I feel you are not discussing the possible effect of a realistic minimum wage increase but rather angling to accuse the government of either causing hardship/unemployment/failed business........or not delivering on their promise........

For me as I have stated previously I think the government will build the minimum wage as quickly as is reasonably possible.....people may get impatient but I think as long as the promise is delivered this term the government will be ok.

There is always inflation. In most countries, wages usually increase at a similar rate to inflation.

The PTP are saying that there will be a rise to 300 baht nation wide within 12 months. I am not discussing what they might do. I am discussing what they have promised to do.

If the PTP are going to promise things so that they get elected, then they should be held responsible for the consequences ... or for not delivering on their promise. You can't really expect otherwise, can you? Do you think the Democrats would be treated any differently?