The winners of Thailand's election will harm businesses, jobs, and competitiveness, an industry group said on Tuesday, after industrial sentiment dropped last month.
The Southeast Asian country's main opposition parties, Move Forward and Pheu Thai, have agreed to form a ruling coalition after they trounced military-backed rivals that have controlled government for nine years.
Move Forward has promised to increase the daily minimum wage to 450 baht $13.29 with annual revisions from an average 337 baht, while Pheu Thai has said to increase it to 600 baht by 2027.
Although it did not object to higher wages, the FTI said that the government should set them based on skills and productivity.
Every time wages are raised, Thailand's competitiveness falls and FDI decreases, said FTI Vice Chairman Montri Mahaplerkpong, also known as FTI's vice chairman.
FTI vice chairman Wiwat Hemmondharop, another FTI vice chairman, said Thailand should adopt average wages, not minimum wages, to help businesses adjust.
If wages rise a lot, small ones will die first, he said.
A fast, big jump in wages without looking at the business structure will make people lose their jobs, he said.
The federation said a new government should be set up quickly to tackle economic challenges as global growth has slowed.