DEBT
Almost all labourers deep in debt
The Nation


Thanavath Phonvichai

BANGKOK: -- Up to 93.7 per cent of Thai labourers have admitted that they are heavily in debt, amid signs of rising unemployment if the country's political stand-off prolonged into the second half of the year, according to the survey by the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, director of the UTCC's Economic and Business Forecasting Centre, said the UTCC survey conducted from April 17-21 with 1,200 samples revealed that more than 90 per cent of labourers, especially those who made less than Bt15,000 per month, were heavily in debt.

The survey shows that the debt of 60 per cent of labourers who made less than Bt15,000 per month actually exceeded their income while 50 per cent of them had to take loans in order to sustain their day-to-day expenses and to pay for their shelter.

Currently, according to the UTCC, Thai workers' debt-per-household is equal to Bt106,000 and most of them - 56 per cent - got their loans from outside the system while 43.9 per cent got their loans from within the system. Most of them need an average of about Bt7,400 every month for loan repayment.

Thanavath said the ratio of outside-the-system debt to debt-per-household is the highest in six years when compared to previous UTCC surveys, which reflected that workers with lower wages are more in debt than their real income.

"Being in debt is now the number one concern for Thai labour, while last year it was ranked at number five," he said. "Other concerns this year include future income, rising cost of living, losing their job, and political problem. As of now, 90 per cent of the labour force does not have an extra job and 80 per cent of them are having problems repaying their debt, a development that is worrisome," he added.

On the other findings, Thanavath said 51 per cent of the Thai labour force saw the economy getting worse and 39 per cent of them are beginning to worry about losing their jobs while believing that it has become harder to find a new job.

Minimum wage inadequate

About 24 per cent of them said the current minimum daily wage was not adequate and believe the minimum wage should be increased to Bt388.25 per day and proposed that the government increase it to Bt498.06 per day in three years and Bt579.74 in five years.

Thanavath revealed that according to a business survey, there will be no hiring at this time, but there will be no downsizing either. However, if the political uncertainty prolongs and the economy remains sluggish, businesses might consider downsizing their work force in September and October this year.

Some businesses have already reduced their working hours and cut down on extra incomes, said Thanavath, adding he is worried that if operators cut their labour force, it would lead to a higher unemployment rate to 1.5-1.7 per cent - around 600,000 people - of the entire labour force, the highest in 10 years.

The unemployment rate last year was at 0.7 per cent - about 400,000 people of the entire labour force - and if the political stand-off prolonged into the second half of this year, more people will be out of jobs, said Thanavath.

Thanavath said he is against the decision to raise the value-added tax (VAT) to 10 per cent because it would exacerbate the economic crisis, which might fall into recession from rising expenditure and lower investment, tourism and domestic consumption. He said he does not see an increase in VAT helping the government make up for the slowdown in revenue collection because the caretaker government cannot spend their previous budget effectively and there is no need to find extra income.

"The government should reconsider any moves to raise taxes in the coming one to two years aimed at stabilising the fragile economy. Inflation has risen due to rising oil price, electricity costs have increased due to the weather, and the prices of goods have also increased. Therefore, there should not be any action that would add to the financial burden of businesses and the people," said Thanavath.

-- The Nation 2014-04-25

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…without thinking of consequences like REPAYING the Loans etc..ESP the Shark loans

Plus lets not forget on top of personal loans etc Inflation is affecting millions just on food purchase and daily school costs for children

This is going to create massive civil unrest far worse than what is being seen now

About 24 per cent of them said the current minimum daily wage was not adequate and believe the minimum wage should be increased to Bt388.25 per day and proposed that the government increase it to Bt498.06 per day in three years and Bt579.74 in five years.

Good luck with that. Then you'll be reading about how inflation is killing Thai laborers.

Fact of the matter is, most of the workers are unskilled and uneducated. They live in a society where the rich take full advantage of the poor, and that is never, ever going to change. The elite will always rule the peasants. So when it is stacked against you from the get go, and you're unskilled and uneducated, you don't have a whole lot of options other than to be happy with what you have. Oh, it would also help if you didn't spend money on things like iPhones, booze, and smokes.

I can't see how the political climate is to blame for this.

Prices were already well on the increase before the protests and lets face it, this was already news last year.

The government created a debt bubble, and they are the ones to blame.

Laborours on 15,000 a month??... In Korat they get 6000 to 8000 a month.

Last night in a restaurant of about 50 customers, at least half spent the duration of their meal playing on iphones and ipads. They are punching above their weight.

From what i have seen in Chiang Mai. The labour is Burmese!

I would think the debt situation covers more than just labourers but having a settled job with guaranteed monthly salary doesn't make things easier if people are magpies and have to have everything going because it's shiny and new and they beat their friends and family to it.

That's what you get for not letting Thaksin come back.

If he was here everyone would have been rich in 6 months.

He said so.

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…

Well, you just try yourself to get by with wife + 2 kids on less than 15000 Baht per month.

That's what you get for not letting Thaksin come back.

If he was here everyone would have been rich in 6 months.

He said so.

"I promise that I will make all Thai people rich within six months."

The Thai laborers must be "fake Thais".

From what i have seen in Chiang Mai. The labour is Burmese!

Indeed. And they really get the short end of the stick. Grossly underpaid and over worked.

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…

Well, you just try yourself to get by with wife + 2 kids on less than 15000 Baht per month.

Well perhaps they shouldn't have bought that Toyota pick up truck under the governments 1st time buyers program is what keestha is getting at.

never mind the labourers the ones earning 50,000bht.plus are also up to their necks in debt.most of it is in the drive.

Judging by the number of used car tents popping up in my area there must be a lot of people selling off cars they can't afford. In the past 12 months the number of used cars for sale must have doubled.

From what i have seen in Chiang Mai. The labour is Burmese!

Indeed. And they really get the short end of the stick. Grossly underpaid and over worked.

I agree, but they're willing to do the work for the wages that many Thais consider themselves above. I'd imagine that one day soon ever the lower tier jobs won't be available for Thais to do no matter how desperate they become.

I'm always amazed when I see a new truck/car parked in front of (but usually near a hammock) a "dwelling" which consists of tin and wire. Some only have 3 walls, but that new shinny vehicle says much. Just think when the owner is on the road, s(he) is "king" (of the road) and "not poor."

Yes you can see this everywhere - what can you see you ask - Thai people trying to live the good life with no means to support it.

I for one wish them a good life but firstly learn about life and how to aquire it - cerainly not by buying everything that is advertised such as IPods,skin whitening creams,new cars,new motorbikes etc etc - learn to do without, learn to budget, learn to enjoy the simple things in life - now the hard one learn to WORK otherwise come 2015 things will only get worse - how come you ask? - ASEAN means more people available to WORK and live yet remit money back home this should tell you something - if it doesn't then enjoy wallowing in your self made debt.

The debt problems of the Thai labourers are only going to get worse over the coming years. In the Thai social ladder unskilled workers are about the lowest of the low. Most have terrible accommodation, tin sheds and such, no sign ever of an improvement in their daily living standards, all their costs going up never down, nothing to offer their children for the child's future, their woes just continue to mount and not one political party wants to help them.

The current turmoil in the streets of Bangkok has nothing to do with "rich vs poor", it's all about getting control of the system to make the leaders and hangers of a group on get into the extremely rich pickings of Goverment money. The Reds never talk about how they will improve the lives of the less well off, they prattle on for hours about defending Democracy, the evil strengths of the "Elite" etc etc. The other side yabbas away about corruption and how it is wrong but never have said how they will eliminate it from Thailand. They talk of reforms but again what and how are not supplied. It's all about me and bugger all others. How many law suites have been promised because one person said something to upset another from the opposing side.

One day soon the great mass of Thais will awake and say "What about me?" " Who is going to look after my interests and improve the miserable life I lead" The nations of the West over the last 200 years were most fortunate to have inspired people to push for the rights of the less well off and the political parties of the day either accepted that or disappeared from the system. Never have I seen a political party in Thailand stand up and promise to help the people of Thailand go forward so all reap the benefit of good, honest , practical and sound decisions. It's all about ,"Thainess" which is another way of saying "up you mate"

The damage of the last 10/12 years can all be laid at the feet of the most self centered people who lead both factions of the divide. May they one day wake up to their folly as the mass of people here will rise and take over.

BAYBOY.

That's what you get for not letting Thaksin come back.

If he was here everyone would have been rich in 6 months.

He said so.

"I promise that I will make all Thai people rich within six months."

The Thai laborers must be "fake Thais".

And when the Thai voters did then put his sister/party into power, their first real act was to cut corporate-taxes, whereas the poor are still poor, after almost three years.

Perhaps Thaksin was joking, when he made his 'pre-election promise', or perhaps time flows differently in the Middle-East ?

If this happened in the UK, there would be a group of protesters following him round, singing "Why Are We Waiting" at every opportunity !

Why shouldn't they be in debt up to their eyeballs? with all those populist schemes the government

are throwing at them just to appease and pacify the uneducated masses.....

The debt problems of the Thai labourers are only going to get worse over the coming years. In the Thai social ladder unskilled workers are about the lowest of the low. Most have terrible accommodation, tin sheds and such, no sign ever of an improvement in their daily living standards, all their costs going up never down, nothing to offer their children for the child's future, their woes just continue to mount and not one political party wants to help them.

The current turmoil in the streets of Bangkok has nothing to do with "rich vs poor", it's all about getting control of the system to make the leaders and hangers of a group on get into the extremely rich pickings of Goverment money. The Reds never talk about how they will improve the lives of the less well off, they prattle on for hours about defending Democracy, the evil strengths of the "Elite" etc etc. The other side yabbas away about corruption and how it is wrong but never have said how they will eliminate it from Thailand. They talk of reforms but again what and how are not supplied. It's all about me and bugger all others. How many law suites have been promised because one person said something to upset another from the opposing side.

One day soon the great mass of Thais will awake and say "What about me?" " Who is going to look after my interests and improve the miserable life I lead" The nations of the West over the last 200 years were most fortunate to have inspired people to push for the rights of the less well off and the political parties of the day either accepted that or disappeared from the system. Never have I seen a political party in Thailand stand up and promise to help the people of Thailand go forward so all reap the benefit of good, honest , practical and sound decisions. It's all about ,"Thainess" which is another way of saying "up you mate"

The damage of the last 10/12 years can all be laid at the feet of the most self centered people who lead both factions of the divide. May they one day wake up to their folly as the mass of people here will rise and take over.

BAYBOY.

Sorry mate.... but you are just ranting on about how Thailand has a social underclass which is struggling.

But hey... I got news for you... Every country in the world also have their very own struggling social underclass.

I am sure if there was a solution to the problem, political parties would be falling over themselves to bring in such policy fit for a veritable Utopia.

I think the fact that not a single nation has been able to form a Utopia where everyone is rich and nobody has financial problems screams out to me that Thailand is actually NOT unique.

On the one hand you criticize others for not coming up with reform plans that you seem to think will fix this problem, and on the other hand you offer up none of your own solutions..... Countries and their struggling social underclasses around the globe await your words of wisdom.

Unless you can find the alchemy to fix it.... your rant is therefore just useless rhetoric.

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…

Well, you just try yourself to get by with wife + 2 kids on less than 15000 Baht per month.

That's nearly impossible! But the worst thing to do in such a scenario is to borrow expensive money. Enter the poverty cycle.

I really don't think it's anything new.

A good few years ago I was working for a Thai company that secured an order that gave them 15 to 18 months work. The workforce were told there would be regular OT on the job. Within a few weeks the car park couldn't hold all the brand new pick-ups that appeared.

By the end of the contract most of them had gone having been 'owned' for just a year. The workers who had to sell when the OT ran out didn't seem concerned in any way, to them it was just the way that things were done.

No doubt when the next job came in they just repeated the whole exercise.

Can anyone say they are really surprised, Thais are very much like children ..must have must have must have…

Well, you just try yourself to get by with wife + 2 kids on less than 15000 Baht per month.

That's nearly impossible! But the worst thing to do in such a scenario is to borrow expensive money. Enter the poverty cycle.

Why get married when you cannot even feed yourself?

The debt problems of the Thai labourers are only going to get worse over the coming years. In the Thai social ladder unskilled workers are about the lowest of the low. Most have terrible accommodation, tin sheds and such, no sign ever of an improvement in their daily living standards, all their costs going up never down, nothing to offer their children for the child's future, their woes just continue to mount and not one political party wants to help them.

The current turmoil in the streets of Bangkok has nothing to do with "rich vs poor", it's all about getting control of the system to make the leaders and hangers of a group on get into the extremely rich pickings of Goverment money. The Reds never talk about how they will improve the lives of the less well off, they prattle on for hours about defending Democracy, the evil strengths of the "Elite" etc etc. The other side yabbas away about corruption and how it is wrong but never have said how they will eliminate it from Thailand. They talk of reforms but again what and how are not supplied. It's all about me and bugger all others. How many law suites have been promised because one person said something to upset another from the opposing side.

One day soon the great mass of Thais will awake and say "What about me?" " Who is going to look after my interests and improve the miserable life I lead" The nations of the West over the last 200 years were most fortunate to have inspired people to push for the rights of the less well off and the political parties of the day either accepted that or disappeared from the system. Never have I seen a political party in Thailand stand up and promise to help the people of Thailand go forward so all reap the benefit of good, honest , practical and sound decisions. It's all about ,"Thainess" which is another way of saying "up you mate"

The damage of the last 10/12 years can all be laid at the feet of the most self centered people who lead both factions of the divide. May they one day wake up to their folly as the mass of people here will rise and take over.

BAYBOY.

Sorry mate.... but you are just ranting on about how Thailand has a social underclass which is struggling.

But hey... I got news for you... Every country in the world also have their very own struggling social underclass.

I am sure if there was a solution to the problem, political parties would be falling over themselves to bring in such policy fit for a veritable Utopia.

I think the fact that not a single nation has been able to form a Utopia where everyone is rich and nobody has financial problems screams out to me that Thailand is actually NOT unique.

On the one hand you criticize others for not coming up with reform plans that you seem to think will fix this problem, and on the other hand you offer up none of your own solutions..... Countries and their struggling social underclasses around the globe await your words of wisdom.

Unless you can find the alchemy to fix it.... your rant is therefore just useless rhetoric.

What you call rants, are commonly called opinions...

I can't understand why in each of your post you have to make personal attacks.

Can anyone say they are really surprised, Thais are very much like children ..must have must have must havewithout thinking of consequences like REPAYING the Loans etc..ESP the Shark loans

Plus lets not forget on top of personal loans etc Inflation is affecting millions just on food purchase and daily school costs for children

This is going to create massive civil unrest far worse than what is being seen now

Excuse me are you talking about Thais or Americans? I am confused!

Karl Marx says to Marie Antoinette, "Credit is the opiate of the masses."

Marie replies, "Let them eat cake at 24%."

Whats now? The new Samsung Galaxy S 5 is out! And the fancy shoe box condo in Pattaya/Hua Hin is built!

fully agree with the poster above who says thai are like kids, must have must have... and most don't even know how to use their little high-end gadgets except for the stupidity of facebook and the likes (look at me look at me)...

recently i've deliberately started to speak mostly english to those with poshy phones telling them they can look it up on google translate or whatever dictionary on their SMART phone..................... "phone smart so you smart too, chai mai?"

Minimum wage inadequate

That said it all, on 7,500 baht/month not considering daily living expenses, it'll take them 4 months to save up for a new iPhone - poor people really have it tough.

Minimum wage inadequate

That said it all, on 7,500 baht/month not considering daily living expenses, it'll take them 4 months to save up for a new iPhone - poor people really have it tough.

Yeah it's tough, but it's not the government's job to bail them out.