Singha Estate unfazed by possible minimum wage hikes

SET-listed developer Singha Estate is unconcerned about potential minimum wage hikes as the impact on its residential development, hotel and industrial estate businesses will be minimal.

Chief financial officer Chairath Sivapornpan said more than half of the construction labourers in its residential development business are skilled workers. The company is confident it can manage any potential effects effectively, said Mr Chairath.

“We factored in a possible rise in construction costs and labour wages during the pricing stage. There may be some impact on residential development, but we have contingency plans in place,” he said.

In the hotel business, the majority of wages are dependent on service charges. If non-skilled workers are needed, the company will outsource those positions, said Mr Chairath.

He said wage hikes have a minimal impact on its industrial estate business as the key attractions for its investors are abundant resources and robust infrastructure.

Situated on a 1,790.5-rai plot, S Industrial Estate Angthong has three power plants with a combined production capacity of 400 megawatts that are capable of generating steam.

Mr Chairath said the project’s strategic location near agricultural sources, livestock and water resources makes it an ideal choice for industrial businesses in the food sector and those that require excellent infrastructure.

“These businesses are less reliant on a large labour force,” he said.

A delay in establishing a new government will not have any significant impact on the company’s target homebuyers because it focuses on the highend segment and overseas buyers, said Mr Chairath.

“In 2021-22, despite sluggish economic growth and limited government spending, our sales performed quite well. We anticipate the impact on our customers from a government power vacuum will be minimal,” he said.

The company plans to launch three residential projects with units priced from 15-50 million baht in the fourth quarter, targeting revenue of 16.3 billion baht this year, a record high.