BANGKOK, Aug 2 – Over 500 automotive factories will be immediately and heavily affected by the daily minimum wage rise to Bt300/day, as set out by the new government’s policy, according to Thavorn Chalassathien, spokesman of Thai Autoparts Manufacturers Association.
There are about 1,000 small-and medium-sized auto spare parts factories out of 2,000 countrywide. The entire industry currently requires a workforce of over 500,000 labourers.
As the cost of production is now increasing, Mr Thavorn said that automotive spare parts will be adjusted at an accordingly higher price by 10-15 per cent.
The spokesman advised the government to support entrepreneurs regarding cost reductions such as electricity bills, while it should consider drafting a ministerial regulation granting the businesses a three-year exemption of contributing to social security funds.
Mr Thavorn also recommended that instead of lowering corporate taxes from 30 to 23 per cent as earlier planned to help subsidise businesses– but as the state stands to lose as much as Bt106 billion through such measures, the new government should opt to cut taxes not as low as 7 per cent. The margin could be used to offset the cost burden for businesses.
