Almost All Labourers Deep In Debt

[Flashermac]

Up to 93.7 per cent of Thai labourers have admitted that they are heavily in debt, amid signs of rising unemployment if the country's political stand-off prolonged into the second half of the year, according to the survey by the University of the Thai Chamber of Commerce (UTCC).

 

Thanavath Phonvichai, director of the UTCC's Economic and Business Forecasting Centre, said the UTCC survey conducted from April 17-21 with 1,200 samples revealed that more than 90 per cent of labourers, especially those who made less than Bt15,000 per month, were heavily in debt.

 

The survey shows that the debt of 60 per cent of labourers who made less than Bt15,000 per month actually exceeded their income while 50 per cent of them had to take loans in order to sustain their day-to-day expenses and to pay for their shelter.

 

Currently, according to the UTCC, Thai workers' debt-per-household is equal to Bt106,000 and most of them - 56 per cent - got their loans from outside the system while 43.9 per cent got their loans from within the system. Most of them need an average of about Bt7,400 every month for loan repayment.

 

Thanavath said the ratio of outside-the-system debt to debt-per-household is the highest in six years when compared to previous UTCC surveys, which reflected that workers with lower wages are more in debt than their real income.

 

"Being in debt is now the number one concern for Thai labour, while last year it was ranked at number five," he said. "Other concerns this year include future income, rising cost of living, losing their job, and political problem. As of now, 90 per cent of the labour force does not have an extra job and 80 per cent of them are having problems repaying their debt, a development that is worrisome," he added.

 

On the other findings, Thanavath said 51 per cent of the Thai labour force saw the economy getting worse and 39 per cent of them are beginning to worry about losing their jobs while believing that it has become harder to find a new job.

 

About 24 per cent of them said the current minimum daily wage was not adequate and believe the minimum wage should be increased to Bt388.25 per day and proposed that the government increase it to Bt498.06 per day in three years and Bt579.74 in five years.

 

Thanavath revealed that according to a business survey, there will be no hiring at this time, but there will be no downsizing either. However, if the political uncertainty prolongs and the economy remains sluggish, businesses might consider downsizing their work force in September and October this year.

 

Some businesses have already reduced their working hours and cut down on extra incomes, said Thanavath, adding he is worried that if operators cut their labour force, it would lead to a higher unemployment rate to 1.5-1.7 per cent - around 600,000 people - of the entire labour force, the highest in 10 years.

 

The unemployment rate last year was at 0.7 per cent - about 400,000 people of the entire labour force - and if the political stand-off prolonged into the second half of this year, more people will be out of jobs, said Thanavath.

 

Thanavath said he is against the decision to raise the value-added tax (VAT) to 10 per cent because it would exacerbate the economic crisis, which might fall into recession from rising expenditure and lower investment, tourism and domestic consumption. He said he does not see an increase in VAT helping the government make up for the slowdown in revenue collection because the caretaker government cannot spend their previous budget effectively and there is no need to find extra income.

 

"The government should reconsider any moves to raise taxes in the coming one to two years aimed at stabilising the fragile economy. Inflation has risen due to rising oil prices, electricity costs have increased due to the weather, and the prices of goods have also increased. Therefore, there should not be any action that would add to the financial burden of businesses and the people," said Thanavath.

 

 

http://www.nationmul...t-30232165.html

[Flashermac]

Several taxi drivers have told me that their families still have not been paid for the rice crop they sold last October, which means they have to send home the money they make. Driving a taxi was supposed to supplement their income, not be the sole income.

[cavanami]

Our little business here in Samut Sakhon is showing the signs of the slowdown. We are now in month 4 of 2014 and

our income is 1/4 of what it was last year!

 

We hear that businesses all over Thailand have greatly slowed down!!

 

We do some international business so we are looking for that to keep us afloat. We also have some on-going projects

are various BKK hospitals, as the medical industry is still booming.

 

We have been anticipating a slowdown since last year, but it is here now, for sure!!!

[WorldFun]

and the taxi meter income has not risen since like 20 years while inflation has been like 100%++?

[WorldFun]

cav, no surprises there so good to hear you are not going down yet

[Flashermac]

and the taxi meter income has not risen since like 20 years while inflation has been like 100%++?

and the taxi meter income has not risen since like 20 years while inflation has been like 100%++?

 

It did go up some years ago, in that it clicks over more quickly. Even so, taxis are still cheap. But drivers have told me they still don't want the minimum charge to go up from 35 baht. They fear it would stop more Thais from taking taxis. As it is now, you can go across town for about 40 baht on the skytrain or underground, if you happen to live anywhere near them.

[radioman]

There was some survey I read about global taxi prices somewhere, think Thailand came out as one of the cheapest and with flagfall at barely US$1 seems crazy to me. I would happily support a 60-90 Baht (US$2-3) flagfall charge. At least it might encourage some drivers to make some of the less appealing journeys they always seem to want to refuse now.

[Mekong]

RM,

 

I disagree, if I go to fortune tower from home I will take a 5 Baht Song Taew and the MRT from Lumpini to Rama IX total cost 45 Baht, if the wife is with me we grab a taxi since it is usually less than 90 Baht, if the flag fall rose to 90 Baht then it would be cheaper to use Song Taew and MRT for two.

 

As Flash pointed out it the flag fall does go up then BTS / MRT will become more economical than grabbing a cab and this is what the taxi drivers are worried about.

[jitagawn]

I hate to driver in Bangkok and only do so when I have large items to transport.

As such I use the BSTS and at night the taxis a lot and truly it s an excellent value.I try to tip if they are reasonably

courteous

 

Its also helpful to keep in touch with my Issan dialects

[jitagawn]

Over the next few years DEBT will be a dominant theme-the world is drowning in debt

due to our felonious credit based fiat currency ponzi scheme...US leads the way.