Bangkok, The Chairman of the NRCT is confident that Thai exports will continue to grow at least 1-2% in 2024 and proposes that wage adjustments must be considered thoroughly and determine assistance measures under the Wage Committee mechanism. Dr. Chaichan Charoensuk, Chairman of the Shippers' Council of Thailand (STC), said that Thailand's international trade situation in March 2024 found that exports were worth 24,960.6 million US dollars. Compared to the same month last year (YoY), it shrank by 10.9 percent and had a value in baht of 892,290 million baht, a contraction of 6.6 percent (when deducting gold, oil, and weapons. found to contract by 5.6 percent), while imports were valued at 26,123.8 million US dollars. expanded by 5.6 percent and had a value in baht of 944,828 million baht, expanding by 10.7 percent, resulting in Thailand's trade balance in March 2024 having a deficit equal to 1,163.3 million US dollars, or equal to 52,538 million baht. An overview of Thailand's international trade in Januar y - March of 2024 found that Thailand exported a total value of 70,995.3 million US dollars. Compared to the same period last year (YoY), it shrank by 0.2 percent (when deducting gold, oil, and weapons. Found that it expanded by 1.3 percent) and had a value in baht of 2,504,009 million baht, expanding by 4.2 percent, while imports were worth 75,470.5 million US dollars. expanded by 3.8 percent and had a value in baht of 2,692,023 million baht, expanding by 8.2 percent, resulting in Thailand's trade balance in January - March 2024 having a deficit of 4,475.2 million US dollars, or equivalent to 188,014 million baht. However, the NRCT forecasts export work targets for the entire year 2024, forecasting Thai exports to grow at 1-2 percent (as of March 2024), with important factors to watch for, including 1) geopolitical conflicts. The protracted Israeli-Hamas conflict has had an impact on other countries in the Middle East, such as Iran, affecting trade and the overall economy. and affecting the Strait of Hormuz , which is the main route for world oil transportation. 2) Concerns about production costs include 2.1) Minimum wages. which adjusted to 400 baht 2.2) Energy costs such as oil and electricity 2.3) The policy interest rate remained stable at a high level. The MPC voted 5 to 2 to maintain the policy interest rate at 2.5 percent per year, and 2.4) Ship freight costs increased high. on every route. 3) Drought problems affect agricultural production. (Fruits come out later than normal season. The production of rubber is less than usual) In addition, the NRCT has important recommendations: Must support and assist exporters to insure important risks, including 1) exchange rate risk to accommodate the fluctuations in the financial market at the end of the year and 2) the risk of counterparty payments To support economic risks and payment abilities of trading partners As for the matter of increasing the minimum wage, 'Wage adjustments must be considered in every aspect and determine measures to help entrepreneurs un der the Wage Committee mechanism. Considering the impact on the economic system and employment as a whole' because there are important considerations including: 1) Raising the minimum wage to the same 400 baht nationwide is not consistent with the business model. Especially product groups that are labor-intensive and low-skilled, such as food, agriculture, textiles and clothing. Thailand must compete with low-cost products from China and Vietnam that produce the same products. Therefore, raising the minimum wage is not consistent with the country's economic fundamentals. It will cause Thailand to lose its ability to compete on the world stage. Especially towards key competitors 2) Minimum wage that is inconsistent with labor productivity (Productivity) will cause problems to the production sector. while the budget allocation to raise labor productivity is less than 1%, reflecting fragile productivity; and 3) a jump in the minimum wage will affect existing industries or labor-intensive industries and SMEs tha t are unable to change or Transitioning to a high-class industry in a short time 'It is very important for the government to manage production costs in order to maintain the competitiveness of Thai entrepreneurs in the global economic slowdown.' There are suggestions to the government for adjusting the minimum wage as follows: 1) It should be adjusted wages and determine measures to assist entrepreneurs under the Wage Committee mechanism (Tripartite Committee) in each area It must take into account the cost of living that varies in each area and the productivity of the labor force. (Productivity) and must consider the impact on the economic system and employment as a whole. 2) Please consider adjusting wages carefully and increasing them gradually. 3) Adjusting wages must be consistent with labor skill. The government must clearly support Total Productivity and Innovation skills of Thai workers, and 4) a joint investment fund should be set up with companies that need to increase liquidity for hiring skilled workers to improve production processes to increase competitiveness. 'Dr. Chai Chan said . Source: Thai News Agency
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