SMEs Can Survive The Impact Of The Daily Minimum Wage Hike

Cost is one of the main reasons why Phuket has become a popular destination for leisure travellers. The best deals are offered by luxury 5 star resort in Phuket for international and local tourists. Normally, luxury resorts are unaffordable for regular tourists but in Phuket you will experience luxury for a reasonable price.

Meanwhile, the latest survey by the University of Thai Chamber of Commerce (UTCC) revealed that small and medium-sized enterprises (SMEs) are expected to survive the negative impact that will be generated by the hike in daily minimum wage because they are now relying on information technology and robots including online shopping.

The research further stated that sales of SMEs will increase because of high consumer spending with higher wages, government-sponsored welfare schemes, active government and private sector projects and the continuing growth of tourism and exports. SMEs can stay afloat with some becoming more profitable with the daily wage hike. SMEs that have been using technology like automated systems to replace humans can easily manage including those that distribute products and services online.

Based on the UTCC research, it is predicted that that daily minimum wage hike of 5 to 22 baht will increase circulation in Thailand’s economy by about 30 billion baht and increase economic growth by 0.1% 0r 0.2%. Since more wages are expected to lift the spending of 6 million workers, it will reinforce GDP growth by 4.2% to 4.5% this year.

The government has insisted that a hike in daily minimum wage is required because of economic conditions. The nationwide increase will depend on the province. For example, Phuket, Chon Buri and Rayong will get the highest increase at 330 baht daily. However, business leaders are asking for a review of the daily wage hike because SME’s, farms and the service sector may not be able to cope up.

However, tourists planning for a vacation in Phuket need not worry because luxury 5 star resort in Phuket will remain affordable. On the other hand, good value is not only determined by the amount saved from booking but from the enjoyment and experience that Phuket offers. The quality of Phuket resorts are world class and second only to a few in the world.