Business worried about 'guided economic policy'
The private sector is concerned over the government's "guided economy policy" as it would erode the rights of private enterprises.
Speaking at a seminar on "Moving Forward on Cost of Living Policy" organised by the Economic Reporters Association yesterday, panellists questioned the government's policy to direct private enterprises to increase the minimum wage and to implement many guided policies to force their operations.
Pornsilp Patcharintanakul, vice chairman of the Thai Chamber of Commerce, said the private sector was worried about the government's policy to direct their management. For instance, the policy to increase the daily minimum wage to Bt300 and highly subsidise farm goods would create difficulties for them as enterprises would face higher costs, while government maintains its price-control policy.
"After having a guided democracy system, we [the business sector] are concerned that the government will interfere with private enterprises by having a 'guided economy policy'," said Pornsilp.
He said the private sector agreed with the government's policy to reduce the income gap and increase wages for low-income people. However, the government should set a time frame and a clear plan for reaching the Bt300 wage target.
Pornsilp added that the government must have a long-term policy to promote the country's development. Under the plan to subsidise farm goods, the government should have a more systematic management to ensure the market mechanism works.
Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong denied that the government intended to change the administration policy to direct the private sector. However, the government wants to have closer cooperation from the private sector in helping boost the incomes of low-income people.
He pointed out that the high numbers of low-income people and the wide income gaps have created problems for the Thai economy for more than two decades. Therefore, rich people may need to be paid less to allow poor people to earn more in a bid to narrow the income gap.
Kittiratt said Thailand would face higher inflation in the near future following the policy to raise the minimum wage and the higher prices of some goods.
However, he said that inflation should not edge up much, as Thailand still had strong economic fundamentals and high national reserves.
