Business worried about 'guided economic policy'

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'."

He said the private sector agreed with the policy to cut the income gap and increase wages for low-income people. But the government should set a time frame and a clear plan for reaching the Bt300 wage target.

Pornsilp said the government must have a long-term policy to promote national development. The plan to subsidise farm goods should have a more systematic management to ensure the market mechanism works.

Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong denied the government intended to change the administration policy to direct the private sector. But he said the government wanted to have closer cooperation from the private sector to help boost the incomes of low-income people. The high number of low-income people and wide income gap have created problems for more than two decades. So, 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 after the policy to raise the minimum wage and higher prices of some goods. But it should not edge up much, as Thailand still had strong fundamentals and high national reserves.