Fears of SME failures as court throws out wage complaint
Hundreds of small and |medium-sized enterprises with a total trade value of Bt3 billion to Bt4 billion will go bankrupt this year, as they have |not yet recovered from last year's floods and will soon face higher |wage costs, according to a source from th
The comment came after the Central Administration Court |on Monday dismissed a complaint filed by a group of Thai and |Japan enterprises calling for a |delay in the increase in the daily |minimum wage to Bt300 set for early next month, saying the government’s policy is based on an unfair analysis.
The FTI source said SMEs from various sectors, mainly electronics, furniture, and home decorative items, would have to close down |soon as they are unable to adjust to the rapid increase in wages, while at the same time they cannot increase their capacity or competitive efficiency.
Delay urged
"Enterprises agree with the policy to increase wages and raise income standards. However, the increases should be delayed, since the government has no plan to boost the efficiency of labourers or help them [businesses] increase competitiveness," the source said.
Jirabul Vitayasingh, secretary-general of the Lifestyle Products Association, said many SMEs that rely on supply chains would face higher manufacturing costs and tougher competition after wages are raised.
He said hundreds of SMEs |had already shut down because |of the impact of last year’s flood-|ing. Some that are still operating have not yet recovered from the flood, but now much face higher wage costs as well, which could force them out of business as well.
FTI vice president Vallop Vitanakorn said many enterprises would face a tough time as they could not raise retail or export prices amid high competition.
He pointed out that some Thai garment manufacturers had already asked for price increases. However, importers have threatened to buy cheaper products from other countries that pay even lower wages than Thailand.
Meanwhile, to promote export of home decorative items and gifts, the International Trade Promotion Department will hold the 33rd Bangkok International Gift and Bangkok International Houseware (BIG & BIH) fair from April 17-22 at Bitec, Bang Na.
Nuntawan Sakuntanaga, director-general of the department, said the fair would emphasise Thailand as an Asean trading and manufacturing centre for innovative products.
The event will feature products from 600 companies and will |exhibit selected design works. The department expects more than 100,000 visitors and imme-|diate sales of Bt1 billion, Nuntawan said.
