Thailand’s Prime Minister urges ASEAN to focus on incentives beyond low labor cost, pushing for higher minimum wages.
Thailand’s Shift From Low Labor Cost to Other Incentives
Prime Minister Srettha Thavisin emphasized the need for Thailand to move away from using low labor cost as a way to attract foreign investments. Instead, he advocated for focusing on clean energy, good international schools, public health care, fair capital market, zero corruption, and ease of doing business during a panel discussion at the World Economic Forum in Davos.
“Low labour cost should not be the attracting point. The attracting point should be clean energy, good international schools, good public health care system, fair capital market, zero corruption, and ease of doing business.”
Prime Minister Srettha Thavisin
ASEAN Collaboration on Minimum Wages
Thavisin also called for collaboration among ASEAN countries to increase their minimum wages, seeing low labor costs as an obstacle to the region’s growth. He expressed his intention to discuss this issue with the Prime Ministers of Cambodia and Malaysia, emphasizing the need for leaders to work together to raise minimum wages to a reasonable level.
Alternative Incentives for Foreign Investments
In addition to raising minimum wages, Thavisin suggested using other incentives to attract investments from the US, Europe, and China. He urged ASEAN countries to consider alternative approaches to draw foreign investments, emphasizing the importance of diverse economic incentives. A video of Thavisin’s remarks was posted on X and the topic was covered on Thai PBS World.
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization comprising ten Southeast Asian countries. The minimum wage in ASEAN countries varies significantly, ranging from US$98 per month in Cambodia to US$1,200 per month in Singapore.
Here is a table summarizing the minimum wages in ASEAN countries for 2023:
| Country | Minimum Wage (US$ per month) |
|---|---|
| Brunei | US$290 |
| Cambodia | US$98 |
| Indonesia | US$277 |
| Laos | US$128 |
| Malaysia | US$260 |
| Myanmar | US$130 |
| Philippines | US$202 |
| Singapore | US$1,200 |
| Thailand | US$330 |
| Vietnam | US$176 |
It is important to note that these figures are just a starting point, and actual wages may vary depending on factors such as industry, experience, and location. Additionally, some countries may have different minimum wages for different sectors or regions.
The minimum wage is a critical policy tool for promoting social justice and reducing income inequality. It helps ensure that workers are paid a fair wage for their labor and can meet their basic needs. However, setting the minimum wage too high can also have negative consequences, such as job losses and reduced economic growth.
