On Saturday, Thai real estate officials urged the new government to gradually raise the minimum wage to avoid a sharp rise in costs.
The president of construction company W House, Voravut Kanchanakul, noted that the new government should gradually raise the minimum wage so that entrepreneurs can cope with rising construction costs. He also added that the new government should first of all deal with issues of the cost of living. Worawut said he would like to see the government formed properly in order to gain the confidence of domestic and foreign investors. He expects a new government to be formed by August, but if it takes longer, it could hurt business and government spending.
"If a new government appears sooner, many problems can be quickly resolved," he said.
State Housing Bank Inspector and Acting Director of the Real Estate Information Center, Wichai Weeraatkapan, expressed his concern about the delay in the formation of a new government.
He stated that this could delay government approval of the FY2024 budget. A delay in government budget approval could have a depressing effect on the property market and lower Thailand's GDP, Wichai explained.
"It's hard to say how fast the economy will recover because politics is a sensitive issue," he said.
He advised the new government to consider the impact of the minimum wage increase, saying it would raise costs for small businesses and cut jobs. However, he does not expect the increase in the minimum wage to affect the real estate market because most developers pay their workers above the official minimum wage.
"We believe the new government will adequately raise the minimum wage without making a drastic change," he said.
The president of the Thai Flats Association, Pirapong Jarun-ek, said he was looking forward to a quick and smooth formation of the new government. He also noted that the new government should introduce stimulus measures for the economy as soon as possible so that it can recover.
"I want the new government to gradually raise the minimum wage," he said, adding that a sharp increase could cause inflation.
