A Chance in Myanmar Induced by the Minimum Wage Policy in Thailand:A Case Study of Myawaddy Industrial Area

Abstract

The central goverment of Myanmar has developed the Myawaddy Industrial Area to enhance domestic small and medium-sized enterprises by setting up plants at the border of Thailand, but the present economic conditions in Myanmar make the realization of this plan difficult. In the Moe Sot district of Thailand, there are currently many Burmese migrant workers who could potentially become the workforce for the industrial area, if the central government creates new jobs. Multinational Corporations in Thailand plan trans-boundary investments to surrounding countries where workers are paid law wages, after Thailand enacted a nationwide minimum wage policy which regulates at least 300 baht per day per worker as of 2013. The Myawaddy Industrial Area could drive the industrialization of Myanmar, if the government institutes a duty free zone to attract foreign direct investment and develops infrastructure. This paper discuss the effects of the industrial area located at the border of Myanmar in relation to the maquila program in Mexico and the Export Processing Zone in NIEs as previous models.