Labour protests dismay foreign investors

Continuing labour protests for wage increases are alarming foreign investors, who could cancel their investment plans in Thailand, says Board of Investment (BoI) secretary-general Atchaka Sibunruang.

In some instances, work has been stopped for many days, preventing companies from delivering items to customers on time. "Because of this, many [foreign investors] have delayed investment plans in Thailand or are considering investing in neighbouring countries," said Dr Atchaka.

Investors want the government to solve the problem as soon as possible, she said. Otherwise the issue will be a new threat to confidence in Thailand.

Some investors have reported that workers have shut down machinery to cause their employers financial damages.

Yet applications for BoI incentives last year were at their highest in 40 years at 723.4 billion baht. This shows that Thailand can still attract investors, said Dr Atchaka. But protests, especially in the automobile sector, are alarming investors, she said.

Dr Atchaka said foreign investors had also expressed concern over labour shortages in Thailand, especially in the electronics and textile industries. The BoI has been requested to extend its incentives to plants hiring immigrant labour, normally ineligible for special BoI privileges.

Some companies that have failed to source enough Thai workers are seeking to set up factories along the border in the hope of hiring immigrant labour more easily, she said.

At the end of last year the electronics sector was running at 90-100% of production capacity, creating a need to raise capacity to meet orders, she said. The same phenomenon is happening in the automotive industry, she added.

Taweekit Chaturacharoenkhun, a vice-chairman of the The Federation of Thai Industries, said he had submitted a letter to the BoI to allow factories hiring immigrant labour to receive the same privileges as those that use Thai labour.

He reasoned that many industries want to increase production but lacking workers, especially in the textile, electronics and automotive industries.