BANGKOK (NNT) - The Ministry of Commerce has elaborated on an increase in commodity prices, saying it is related to many factors in addition to wages. The ministry is meanwhile, set to deploy officials to prevent unreasonable price increases.
On the 6th December, the national wage committee approved a minimum wage increase of 5-6 baht, raising daily minimum wages across the country to 313-336 baht effective from 1st January 2020, pending Cabinet’s approval.
On this matter, the Department of Internal Trade’s Deputy Director General Prayoth Benyasut, said today the Ministry of Commerce is confident the wage adjustment won’t cause an increase in commodity prices, as any such increase must take into consideration other costs such as energy, logistics, raw materials, and currency exchange rates and duties in the case of imported products.
He said no manufacturers have requested an increase in pricing following the new wages announcement, while local commercial affairs offices have not yet come across any increase in commodity prices. The ministry is deploying officials to monitor commodity pricing closely.
The director of Rangsit University’s Economic and Business Research Centre for Reform, Anusorn Tamajai said today this minimal increase in minimum wages won’t have any significant effect on overall purchasing power, but will increase the financial burden on smaller businesses.
He suggested the government implement hourly minimum wages, which should be higher than the daily amount divided into hours, such as 50 baht per hour, while at the same time workers must improve their skills and adjust to technological changes.