There are fears on the part of some employers that increased labor costs (the new minimum wage applies to every employee in Thailand, regardless of age, sex, industry, or nationality) will affect already struggling SMEs and could lead to employee layoffs or even force some SMEs out of business.
Many employers fear that Thailand’s international and regional competitiveness will be negatively affected by increased labor costs, which could trigger Thai businesses to employ greater numbers of informal labor. Migrant workers from Thailand’s neighbors, particularly Cambodia, where the daily minimum wage is $2.03 and Burma (also known as Myanmar) where the daily minimum wage is 58 cents, are expected to come in even greater numbers, attracted by higher wages. In fact, some Cambodian factory owners are complaining that they are now facing a labor shortage as locals move to Thailand for better wages.
(Parker, 2013)