The Cabinet acknowledged the monitoring of commodity prices related to the minimum wage increase, following the suggestions from the Ministry of Commerce.
Gist
1. Effects of the minimum wage increase on production cost and commodity prices
1.1 Production cost: Most of essential consumer goods produced by large-scaled entrepreneurs, such as vegetable oil, soap, laundry powder, cement and reinforced steel, are not affected from the latest minimum wage increase (effective from 1 January 2013), since minimum wage of 300 Baht was adjusted earlier since 1 April 2012 in 7 provinces (Bangkok, Samutsakorn, Pathumthani, Nakornpathom, Nonthaburi, Samutprakarn and Phuket). As for small and medium enterprises (SMEs), such as textile, furniture and leather products, the effect will be seen by at least 2-6%.
1.2 Selling prices: There might be a psychological effect on both wholesale and retail shops which results in their increasing of the commodity prices. For this, inspection officers will closely monitor.
1.3 Minimum wage raise empowers people’s purchasing power which results in the increase of sales volumes and the decrease of production cost per unit. Moreover, other governmental policies, such as reduction of corporate income tax, will also contribute to the decrease of production cost.
1.4 Entrepreneurs may manage to reduce their production cost that is affected by the minimum wage raise by increasing their employees’ efficiency. The increase of employees’ efficiency will result in the increase of production efficiency and, thereby, the decrease of production cost. This will also benefit national economic growth as a whole.
2. Trend of commodity prices in 2013
The prices of most products will be stable at around the same level as in 2012 since material prices used in the production are expected to be stable. Other factors such as Dubai crude and exchange rate are expected to be around 100-120 USD/barrel (88.98-124.09 USD/barrel in 2012) and around 28.50-32.50 baht/USD (30.38-32.05 baht/USD in 2012) respectively.
The Cabinet approved resolutions of the Illegal Migrant Worker Administration Committee made in its third meeting in 2012 (3/2012) on 26 December 2012 about the extension of 120-day grace period for illegal migrant workers with Myanmar, Laotian, and Khmer nationalities, together with their children (not over 15 years of age), who have already worked in Thailand to proceed with the acquisition of temporary passport or certificate of identity from their countries of origin, and complete registration process to become legal migrant workers and to be able to continue working with their Thai employers. The cabinet also approved for concerned offices and authorities to proceed according to the Committee’s resolution:
1) Ministry of Interior
(1) Issue an announcement to grant 120-day grace period for illegal migrant workers with Myanmar, Laotian, and Khmer nationalities, together with their children (not over 15 years of age), who have already worked in Thailand to reside in the Kingdom as a special case.
(2) determine the visa fee for dependents of migrant workers with Burmese, Laotian and Cambodian nationalities whose age are under 15 years old.
2) Immigration Bureau is to proceed on the Non-Immigrant-LA visa and the 2 year permit to reside in the Kingdom for the Burmese, Laotian and Cambodian migrant workers and their children aged under 15 years old.
3) Ministry of Public Health is to offer health examination to the Burmese, Laotian and Cambodian migrant workers who were granted the grace period to stay in the Kingdom.
4) Department of Employment
(1) To set up One-Stop-Service stations in the appropriate areas to facilitate the aforementioned process for migrant workers and their employers.
(2) to accept the request applications for the employment of migrant workers
(3) to publicize about this matter
(4) to accept application for a working permit under section 9 of Alien Working Act B.E. 2551
(5) to grant working permit and build a Bio Data database. In cases that the migrant workers do not pass health examination, the Department may annul the permission, refund the paid fee and inform concerned offices to proceed on the matter.
5) Ministry of Foreign Affairs is to grant the authority in approval of Non-Immigrant-LA visa to the Immigration Bureau to facilitate Burmese, Laotian and Cambodian migrant workers and children aged under 15 years old.
6) Social Security Office is to include the migrant workers with working permit issued under section 9 of Alien Working Act B.E. 2551 into the social security system.
7) Ministry of Finance is to provide budget to support this matter
8) The Royal Thai Police and related offices are to act appropriately with the employers and the migrant workers who are under the procedure of this special permission, and to act strictly according to their authority after the end of the grace period.
The Cabinet approved of the following points proposed by the Ministry of Foreign Affairs:
1. to allow the Ministry of Foreign Affairs to appoint its government official to work as the director of communication and public relations at ASEAN-China Center, Beijing, from 2013-2016. Since work responsibility is focusing on the collaboration between China and ASEAN, the person in charge should be a government official with an expertise in foreign affairs, having knowledge about ASEAN and an experience as expatriate.
2. to approve for the relocation of work with the ASEAN-China Center to be considered a government service, not a leave of work for an international organization.
3. to allow the aforementioned government official to receive disbursement rights as other government expatriates of the same level who are working in the People’s Republic of China.
--Cabinet Meeting (Yingluck Shinawatra) January 15, 2013--