Faced with the prospect of rising costs after the expected hike in the country’s minimum wage next month, 15 of Thailand’s largest garment manufacturers have indicated that they will halt local expansion plans.
Thai Garment Manufacturers Association president Sukij Kongpiyajarn told local press that the move was made as a sign of opposition to the Thai government’s plan to increase the daily minimum wage in at least six Thai provinces from $7 a day to $9.75 on April 1. Wages in Thailand’s other provinces will also increase up to 40 percent, although they will remain below $9.75. Local media quoted an association official saying that 30 percent of the smaller producers in the garment industry might shut down due to the wage hike.
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