National —
On September 21st, 2024, Mr. Phan Phaniangwet, the Managing Director of Thai President Foods PLC, the producer of Mama instant noodles, expressed no opposition to the proposed minimum wage increase to 400 baht.
Phan urged the Thai government to finalize the decision quickly, citing the recent volatility of the Thai baht.
The baht’s rapid appreciation in recent weeks, reaching 32.87 against the US dollar as of the morning of September 22nd, has slightly reduced the cost of importing raw materials, such as tapioca flour, said Phan. However, it has also impacted export revenues.
As the company engages in both importing and exporting, Phan noted that the effects have been manageable so far.
Phan emphasized that the exchange rate has been fluctuating significantly, from 37 baht per US dollar to under 33 baht, and it remains uncertain how much further it will drop. He called on government regulators to prevent excessive currency swings, as businesses need time and clear signals to adjust.
Regarding the proposed minimum wage hike, Phan stated that the company does not oppose it and encouraged swift government action.
He believes wage increases would boost purchasing power more effectively than the government’s planned 10,000 baht cash handout.
Currently, Mama’s sales are growing by 8-9%, as the product remains a household staple, regardless of economic conditions, remarked Phan.
