The increase in the daily minimum wage to 300 baht nationwide from Jan 1 will have little effect on the IT retail sector, business operators say.
Yongyuth Chaichana, managing director of IT trading centre at Thaippatana Arcade Ltd, said the wage hike pushed up costs for his firm by only 5%, which is not much.
All industries would be affected by the rise in labour costs, but the effect was minimal for IT businesses, Mr Yongyuth said.
He expected IT market would continue to expand this year on the back of the government’s stimulus measures.
Somyos Chavalit, managing director of J.I.B Computer Group, took the same tone, saying the wage hike only slightly increased his company’s operating costs.
His firm would look for way to increase profits to set off the increased labour cost, probably by marketing IT products that yield a higher profit.
He expected the IT market to grow by around 10% this year, but competition would be more intense. He predicted small IT retailers would not survive and that the market would in the near future be dominated by a few giant retailers.
Ekachai Sirijirapattana, managing director of IT City Plc, said his firm had no problem with the wage rise because most of its employees have bachelor degrees and are already being paid more than 300 baht per day.
Mr Ekachai expected the IT market would further expand as new products gradually enter the market in 2013.
Nath Nathnitikaratch, managing director of the System Ltd, said the wage hike had no impact on his firm as most employees were already getting more than 300 baht a day.
As a result of the increase, many people would have more money to spend which would in turn help boost IT sales, he said.
Adisak Sukhumwittaya, executive chairman of Jay Mart Plc, his company would not face any impact of the wage hike as his employees were paid more than 300 baht a day.
Nakhon Chanthila, manager for market development at Zeer Rangsit Shopping Centre, said his company already pays 10% above the new minimum of 300 baht a day, so there is no problem.
Mr Nakhon projected the IT market would continue to expand this year on the back of new products, particularly the introduction of Windows 8.