Thailand Delays Minimum Wage Hike Due to Lack of Quorum - Impact on Economy and Investments Revealed
Thailand's planned increase in the minimum wage to 400 baht per day has been postponed by about two weeks, causing uncertainty in the labor market. The delay is due to a lack of a quorum at committee meetings discussing the hike, according to a senior labour official.
The new minimum wage will only apply to businesses with more than 200 employees, and it was part of the ruling party's campaign promises to boost economic growth. However, the delay in implementation could have repercussions on the economy, which is already struggling with high household debt and a slowdown in manufacturing.
The government's stimulus scheme, where individuals will receive 10,000 baht each to spend in local communities, is set to kick off soon. This initiative aims to stimulate consumer spending and drive economic growth. The central bank expects the economy to grow by 2.6% this year, up from 1.9% in 2023.
Overall, the delay in the minimum wage hike could impact businesses, workers, and investors in Thailand. It's essential to monitor the situation closely and assess the potential effects on various sectors of the economy. Stay tuned for more updates on this developing story.