BANGKOK, 8 May 2012 – The Industry Ministry has announced that only 60 new factories were opened in April, the lowest number in 20 years. The ministry cited the effect stemmed from the imposition of the 300-baht minimum wage policy.
The combined investment value of new factories opened in April is only 1.3 billion baht, a significant drop from last year’s value of 17.8 billion baht. The value in April this year is even lower than the figures during the Tom Yum Kung Crisis in 1997 and Global Hamburger Crisis in 2009.
The ministry said many investors have delayed their plans as they are concerned over the 300-baht minimum wage policy. Currently, only seven provinces have enforced the law, other provinces will have to follow suit next year.
Despite the low number, the ministry is confident that foreign investors still consider Thailand as a potential production base, but they need time to study the effects of the wage hike policy.
