Chairman of the Federation of Thai Industries (FTI), Suphan Mongkolsuthee has cautioned on raising the daily minimum wage to 400 baht, as it would have a detrimental impact on SMEs, as reported in Bangkok Post.

Instead, he said a wage rise must respond to economic conditions in each area, adding how to the private sector attaches importance on improving skills among workers so they can have a better chance of earning more income.

According to him, a wage hike should be deliberated by the tripartite national wage committee and the increase should depend on regional economic conditions, as reported in Bangkok Post.

He added: "A hike should not result in the same wage across the country. Such an increase would benefit migrant workers. Most Thai workers already have better wages. However, they need to focus on improving their skills."

On the other hand, Deputy Chairman of the Thai Labour Solidarity Committee, Chalee Loysoong, welcomed reports that the government aims to raise the daily minimum wage to 400 baht.

However, he said the government should step up efforts to rein in rising prices to ensure workers really benefit from the wage hike.

It should also come up with measures to ensure employers comply with the wage rise, he added. This could include reducing the corporate income tax to help employers out, he said.

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