Thai PM Calls for Higher Wages & Diverse Incentives for Foreign Investments In ASEAN

• 24 January 2024
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Thai Prime Minister Srettha Thavisin has called on leaders of other ASEAN countries, including Malaysia and Cambodia, to work together to find ways to raise minimum wages and propose changes to foreign investment incentives, according to Thailand Business News on 22 January 2024.

Speaking at the World Economic Forum in Davos, PM Thavisin emphasized the imperative for Thailand to move beyond the allure of low labor costs to attract foreign investments. Instead, he outlined a comprehensive strategy focusing on clean energy, top-notch international schools, robust public healthcare, fair capital markets, zero corruption, and a business-friendly environment.

In a panel discussion, Thavisin highlighted the need for ASEAN countries to collaboratively address the issue of low minimum wages, which he perceives as a hindrance to the region’s overall growth. He expressed his intention to engage with the Prime Ministers of Cambodia and Malaysia to discuss ways of elevating minimum wages collectively. Thavisin stressed the importance of regional leaders working in tandem to establish minimum wages at reasonable levels, fostering economic growth across ASEAN nations.

Beyond advocating for higher minimum wages, Thavisin proposed the adoption of diverse incentives to attract foreign investments from the US, Europe, and China. He urged ASEAN countries to explore alternative approaches, underlining the significance of a varied set of economic incentives. This strategic shift aims to position Thailand and its regional counterparts as attractive investment destinations, moving away from traditional low-cost labor paradigms.

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