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Thai garment producers urge govt to hold back wage hike
Nov '11
The Thai Government has been urged to hold back the wage hike that is to come into affect soon, so as to ease the difficulties of the flood-hit garment producers in the country.

Garment entrepreneurs of the country are apprehending that new investments coming to the Thai garment industry are likely to get diverted to other Asean countries, as the recent floods have badly damaged their facilities and they are also likely to confront the issue of high labour costs next year owing to the decision of the Government to increase wages.

President of the Thai Garment Manufacturers Association (TGMA), Sukij Kongpiyacharn, said investments from the country would also get diverted to other Asean countries, which are comparatively less exposed to government policies. He added that the labour scarcity caused by floods may trouble the domestic industry in future.

Moreover, due to the impact of floods, the country's garment export growth is also likely to remain flat during the current year, he stated, and added that the hike in labour costs would especially trouble several small and medium sized firms that are affected by floods.

Meanwhile, 169 trade associations convened a meeting with the Commerce Ministry's Department of Export Promotion, Business Development Department and Intellectual Property Department and sought measures to help them overcome the effects of floods.

Most private industrialists at the meeting strongly voiced their concern that if the daily minimum wage is hiked to THB 300, it would impede the recovery and growth of the industries already ailing due to floods.

The private entrepreneurs opined that Government measures like extending fiscal support and soft loans would not prove sufficient to back rehabilitation of their industries, if they need to utilize the same to counter high cost of labour.

According to the Ministry reports, around 350,000 businesses in 31 provinces, which constitute 70 percent of the total enterprises in the country, have been hit by this year's floods.

Fibre2fashion News Desk - India

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