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Sectors face downside of higher daily wage


Published July 18, 2019
By The Nation

Securities brokers expect the new government to raise the minimum daily wage to Bt400 from Bt325, shortly after formation of the new Cabinet.

Although the higher wage will boost domestic consumption, it would also lead to a spike in the production costs of some industrie

Natthachart Mekmasin, assistant MD at Trinity Securities Co Ltd, said industries relying heavily on manual labour will be most adversely affected, such as food, agriculture, automotive and electronic components. Producers in these sectors will likely see a decrease in profits. However, it will only have a marginal impact on the overall stock market as bigger industries such as energy, commercial bank and retail will not be significantly affected by the new wage rate.

Original Source: https://www.nationthailand.com/business/30373142

Gross profit of construction contractors may decrease by 2 per cent from an average of 8-10 per cent.
Created at 2019-07-21 21:52:04