The Thai National Shippers' Council (TNSC) is confident exports will grow by 1-2% this year and suggested the planned hike in the daily minimum wage must be considered thoroughly, with supportive government measures provided under the wage committee mechanism.
Chaichan Chareonsuk, chairman of the TNSC, said exports as of March 2024 are expected to rise 1-2% this year, while the Israel-Hamas conflict should be monitored because it could escalate and expand to include other countries in the region.
If the conflict broadens and leads to the closure of the Strait of Hormuz -- the world's most important oil passageway -- the situation could affect global trade, he said.
Other concerns include production costs, including a planned increase in the daily minimum wage to 400 baht, the prices of oil and electricity, the Bank of Thailand's interest rate policy, elevated freight costs, and drought, which affects agricultural production.
The TNSC proposes the government support shippers insuring against risks, including exchange rate risk, to accommodate financial market volatility and the default payment risk of the country's trading partners in response to an economic downturn.
A sharp increase in the daily minimum wage would affect labour-intensive industries and small and medium-sized enterprises that are unable to adjust to become capital-intensive industries within a short time frame, said Mr Chaichan.
The government needs to manage production costs to maintain the competitiveness of Thai entrepreneurs amid a global economic slowdown, he said.
The government should also provide support measures for entrepreneurs through the wage committee, considering the impact on the economy and employment as a whole, said Mr Chaichan.
The daily minimum wage hike should take into account the cost of living, which varies by province, as well as the productivity of the labour force, he said.
Any wage hike should be gradual and in line with workers' skills, said Mr Chaichan.
The government needs to support productivity and the innovative skills of Thai workers, he said.
Joint investment funds should be created by the government for companies that need to increase their liquidity to hire skilled workers to improve their production processes and increase competitiveness, said Mr Chaichan.
For the first three months of this year, export value tallied US$71 billion, down 0.2% year-on-year.
The value of imports reached $75 billion, up by 3.8%, for a trade deficit of $4 billion, according to the council.