Electronics Units In Thailand Considering To Relocate Due To Wage Hike, Floods

[webfact]

MANUFACTURING

Minimum wage hike, flood fears might force electronics units to relocate

NALIN VIBOONCHART

THE NATION

Industrialists warned yesterday that some units from the Thai electronics industry might relocate to other countries if they are unable to handle the jump in daily minimum wage to Bt300 starting from April 1 or remain uncertain about a flood crisis recurring in the future.

Gritsada Suptuaychone, secretary of the Electrical, Electronics and Allied Industries club under the Federation of Thai Industries, said it was possible for some factories, particularly those that are labour-intensive and can relocate their operations easily, to move out of Thailand. The two main factors that would lead them to relocate are high wages and uncertainty over government measures to prevent future floods.

Maxon Systems (Thailand), a South Korean electronic-components manufacturer, is an example of a firm that has already moved its operations to Cambodia, where it can afford the daily wage of Bt80. Maxon Systems had about 2,000 workers at its plant in Rojana Industrial Park.

Gritsada said assembly plants in the electronics industry could move their production facilities easily as the production process is not complicated.

"The electronics industry in Thailand has faced two serious crises - the impact from the tsunami in Japan and flooding in the home country. The manufacturers have been affected a lot. So they have to diversify risk by investing or relocating to other countries such as Thailand's neighbouring countries," he said.

Although the workforce in the neighbouring countries has lower skill levels when compared with Thai labour, electronics companies can train them to do the jobs. Apart from Cambodia, Burma is another interesting country for electronics firms as the minimum wage there is lower than in Thailand.

A source from Minebea, a giant Japan-based electronics firm in Thailand, said the company so far had not made any plans to relocate. However, any future plans to expand production in Thailand would be considered only after taking into account whether the government has a concrete plan to prevent flooding in the future and whether industrial estates invest in flood protection.

Minebea has manufacturing facilities in Lop Buri, Rojana Industrial Park in Ayutthaya, where its plant was inundated, and Bangpa-in, also in Ayutthaya.

A source from the Electrical and Electronics Institute said that according to preliminary estimates the export value of electronics components in the final quarter of this year would drop by between US$3 billion and $4 billion (Bt94 billion to Bt125 billion) because of the disruption caused by flooding. Export growth this year will decline by 5 per cent from about $30 billion in 2010. The institute will revise the forecast as many industrialists foresee export value dropping more than this estimate.

"We're keeping an eye on the manufacturers, whether or not some of them move out of Thailand," the source said. "We [the industrialists in this sector] have had discussions and there will be some firms that might move out of Thailand.

"Besides the floods and increase in wages, there is lack of clarity on privileges offered by the Board of Investment to flood-hit manufacturers, which could also be a factor in pushing them out of Thailand."

-- The Nation 2011-11-25

[givenall]

This government again showed its ignorant about economic system.You don't just raise salary to improve standard of living. You have to addvalue to the workforce before increasing their salary. If the workforce is thesame why should anyone give them more money? May be instead of trying to makepeople happy with empty promises, educate them to become more valuable andmarket will take care of the rest

Now they have to deal with unemployment

[DocN]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

[mortenaa]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

Well suddenly that greedy bastard was out of business because his biggest competitor moved to Cambodia three years ago, and overflowed the market with his cheaper products. You have no economic sense. Look at your home country. Those greedy bastards moved all production to China decades ago..

[Kilgore Trout]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

"Business is business and business must grow, regardless of crummies in tummies, you know"

The Lorax, Dr. Seuss

[Oberkommando]

Maxon Systems (Thailand), a South Korean electronic-components manufacturer, is an example of a firm that has already moved its operations to Cambodia, where it can afford the daily wage of Bt80. Maxon Systems had about 2,000 workers at its plant in Rojana Industrial Park.

Considering and in the process of moving. Maxon have moved 25%+ of their operations to Cambodia with an investment of B800million+

In addition, Cambodia is currently enjoying boom times when it comes to tourism, I've never seen Phnom Penh so busy!

[DocN]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

Well suddenly that greedy bastard was out of business because his biggest competitor moved to Cambodia three years ago, and overflowed the market with his cheaper products. You have no economic sense. Look at your home country. Those greedy bastards moved all production to China decades ago..

I am well aware of the REALITY, Professor! Thank you!

Does that make it any better?

[animatic]

The inevitable exodus of capital, jobs and productivity is on schedule.

There seems an inexhaustible ability to shoot their own foot here.

[Thaddeus]

There seems an inexhaustible ability to shoot their own foot here.

As soon as any government starts to dally with basic economic principles of the business sector, the business sector reaches for the calculator.

[Bakseedaa]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

Long live those Greedy Bastards...... who would you rather have as neighbours, those greedy bastards or a gang of Red Shirts.... ?

[AleG]

Is the PTP government, as with the floods, claim that nobody could had seen this coming?

They have set the course for higher unemployment and inflation in the country, hopefully when people start to notice they will see who, when and how things started to go downhill.

[Oberkommando]

PTP are not solely to blame, it is simple economics.

Cambodia offers an attractive package for investors, while Thailand remains crippled by domestic crisis.

[AleG]

Hun Sen must be laughing himself silly at the prospect. His investment in destabilizing Thailand is starting to pay off.

[tlansford]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

+1

To companies who want to exploit workers for 80bht per day, let them move. They'll do it anyway. It's a race to the bottom.

Thailand has to take care of it's own. There are other reasons for companies to invest in a country besides having the lowest labor costs & Thailand must work on that.

Exploitation is exploitation. People, environmental, you name it.

[scotbeve]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

+10

[Oberkommando]

Hun Sen must be laughing himself silly at the prospect. His investment in destabilizing Thailand is starting to pay off.

No need for Hun Sen to do anything, Thailand has accomplished that all by itself!

[philw]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

+1

To companies who want to exploit workers for 80bht per day, let them move. They'll do it anyway. It's a race to the bottom.

Thailand has to take care of it's own. There are other reasons for companies to invest in a country besides having the lowest labor costs & Thailand must work on that.

Exploitation is exploitation. People, environmental, you name it.

Plus plus

Think you are both dead right.

[Oberkommando]

People were no doubt saying the same thing when the businesses and factories were relocated to Thailand from wherever they were before.

Let's hope Cambodia benefits as much as Thailand has done.

[DocN]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

Long live those Greedy Bastards...... who would you rather have as neighbours, those greedy bastards or a gang of Red Shirts.... ?

I would have to think long and hard about that!

...especially, because I don't see the point and what "a gang of Red Shirts" would have to do with this....

Edited November 25, 2011 by DocN

[moe666]

Send them to Burma, a few years ago the wage for some girls carving designs into laquer ware was 35 cents a day US plus board and room. The daily wage for a road worker was 70 cents a day no room and board. It may make good economic sense for companies to move for lower wages but it doesn't make it right morally or other wise.

In due time they will have exhausted all of the low paying countries and then what will they do.

[DocN]

Send them to Burma, a few years ago the wage for some girls carving designs into laquer ware was 35 cents a day US plus board and room. The daily wage for a road worker was 70 cents a day no room and board. It may make good economic sense for companies to move for lower wages but it doesn't make it right morally or other wise.

In due time they will have exhausted all of the low paying countries and then what will they do.

+1

[Oberkommando]

Send them to Burma, a few years ago the wage for some girls carving designs into laquer ware was 35 cents a day US plus board and room. The daily wage for a road worker was 70 cents a day no room and board. It may make good economic sense for companies to move for lower wages but it doesn't make it right morally or other wise.

In due time they will have exhausted all of the low paying countries and then what will they do.

With dwindling World resources they will have no shortage of people willing to work for next to nothing and quite possibly just to survive.

They will rely on the desperation of poorer countries ever-increasing populations and import cheap foreign labour as singapore does for it's heavy industries including shipbuilding.

[Sydebolle]

Seriously, is anyone surprised? I ran a company in Nongprue/Pattaya with the following problems which led me to suggest everyone NOT to invest in Thailand's economy:- brown outs and power cuts EVERY week- city water running unreliably; pressure varies and so does the quality- phone lines ongoingly down (they nick the copper wires); makes Fax obsolete yet is still used by many Thai sub-suppliers- internet is expensive, slow and also unreliable at times- labour protection act protects labourers; did you every try to sue staff who just walked out of the job and took company assets along?- red tape: ever tried to open an internet banking account and credit card swiping facility? I did and it took me seven godforsaken months - run a girlie bar; never a staff problem. Try to run a normal business with THB 10'000/monthly wage per staff, limited English? Forget it, the applicants give you the willies...... and so the story goesQuintessence was; I moved this business away to Cambodia. I pay the staff proper salaries and give them human housing and food. Never had staff problems, profits are considerably better than in Thailand and the government does not intervene in anything. Ah, and visa/work permit is a walk in the park compared to the LOS. So, yes, go and look around before sinking a lot of money into frustrating Thailand

[Mosha]

Send them to Burma, a few years ago the wage for some girls carving designs into laquer ware was 35 cents a day US plus board and room. The daily wage for a road worker was 70 cents a day no room and board. It may make good economic sense for companies to move for lower wages but it doesn't make it right morally or other wise.

In due time they will have exhausted all of the low paying countries and then what will they do.

Return jobs to where these companies are actually based would be nice, but we all know that won't happen any time soon.

[Xonax]

PTP are not solely to blame, it is simple economics.

Cambodia offers an attractive package for investors, while Thailand remains crippled by domestic crisis.

The political crisis in Thailand is far worse than the flood crisis. Thailand is a divided country where only greed rules!

Edited November 25, 2011 by Xonax

[DLock]

"Morals and exploitation" - the catchwords used by failed businessmen to condemn those businesses that have succeeded by being smarter.

It's the same cheap labour that made the computer you are typing your posts on.

The same labour that allows you to afford to buy your shoes, your clothes, your iPOD and your TV.

Your beef should not be with these smart companies.

They are been wooed by all the Asian countries with incentives and tax breaks to help increase employment, skills and drag their economies up a few notches. It's the reality of the world we live in - competition and economics....and soon Thailand is going to understand just what those 2 words really mean in the harshest way possible.

[SICHONSTEVE]

The inevitable exodus of capital, jobs and productivity is on schedule.

There seems an inexhaustible ability to shoot their own foot here.

"or remain uncertain about a flood crisis recurring in the future".

Don't worry!!!! Yingluck will absolutely guarantee that "Thailand will never have floods again" as she doesn't like them as they ruin her mascara and slow down Thaksin's passage back to Thailand. Oh yes!!! they have killed 600 people and made life hell for millions of her fellow citizens (almost forgot that bit).

She will form 3 or 4 committees to work towards preventing excess rain from landing on Thailand including an "anti-rain dance committee" , FROC2, FROC3 and FROC4 working independently of each other just in case her absolute guarantee becomes a 50% guarantee and then a 'worthless' guarantee when the next rainy season starts.

Not bad really - Yingluck has "f****d up the country in about 3 months - what took her so long, I hesitate to ask????:jap:.

Edited November 25, 2011 by SICHONSTEVE

[Oberkommando]

Not bad really - Yingluck has "f****d up the country in about 3 months - what took her so long, I hesitate to ask????:jap:.

They can always have another coup to remove her, and the farcical Thai political process can start all over again.

Wouldn't want her to become only the second elected Thai PM after her brother to serve a full term would we?

[Insight]

They promised a minimum wage.

They said nothing about the existence of jobs (or complete lack thereof) to receive it

[ozzieman05]

Ahhhhhhhhwwww....will they not be making 10 Gazillion Dollars profit next year but only 9,5 due to the massive raise in wages?

It's really time to relocate!

Is there a place, where minimum wages are below 150 THB?

Where we can trample on the environment a little more, for less bribe money, so the "inspectors" look the other way?

Are there swampy wetlands elsewhere, where a flood normally runs out and just vanishes into the ground, that we could build a massive concrete structure on...and complain, if we get flooded again...although we bought the place for a handful of cash, got taxes lowered and...and...and...

If there is a parallel universe, these greedy b@stards would be hanging from a tree by their b@lls.

+1

To companies who want to exploit workers for 80bht per day, let them move. They'll do it anyway. It's a race to the bottom.

Thailand has to take care of it's own. There are other reasons for companies to invest in a country besides having the lowest labor costs & Thailand must work on that.

Exploitation is exploitation. People, environmental, you name it.

How many times have I heard of Thai companies employing people from Cambodia etc

Putting them to work and holding back wages

when it comes to a head and a lot of money involved

The thai companies call immigration and have the workers deported

all the owed money stays in Thai company pockets

In a country full of Buddhist Karma is part of your culture

Thai wife says the time for Karma has come