Give SMEs a fighting chance

In advanced economies, business start-ups are encouraged, and budding SMEs are provided with a level playing field.

In contrast, a well-known businessman recently came out in support of the Yingluck government’s plan to immediately raise the minimum wage to Bt300 baht a day countrywide. This gentleman also asserted that “Bt500 a day would be even better”. Luckily, very few people listened to the self-opinionated reasoning of this person, because such a move would hurt, or even bankrupt fledgling SMEs. A sensible approach should be to raise the minimum wage at the rate of 20-25 per cent a year for, say, five consecutive years. It is also noteworthy that every time a minimum wage is raised, consumer product retailers with outlets strategically situated around the country benefit handsomely as a result.

Vint Chavala

Lamphun