About 10 percent of the total 2.2 million small and medium enterprises (SMEs) in Thailand are likely to close down or relocate to other countries within the upcoming six months after the minimum wage was raised to 9.7 U.S. dollars this month, according to the Thai Chamber of Commerce (TCC).

TCC projected that some 5.6 percent of SMEs, which employ 1-25 workers nationwide will be forced to close while 5 percent of them would move out to invest overseas, local media reported Tuesday.

Only 1 percent of all companies would feel no pressure from the wage hike, and those are large firms with more than 500 workers, TCC's study said.

The chamber also anticipated that foreign direct investment to the country would possibly drop by 25 percent from the average 400 billion baht (13 billion U.S. dollars) annually. The impact would be more severe early next year as the wage hike is applied across the country, said the study.

From April 1, 2012 onwards, minimum daily wage in Thailand in seven provinces, which include the capital city of Bangkok, five other provinces in central part -- Samut Prakarn, Samutsakorn, Pathumthani, Nakorn Pathom and Nonthaburi -- and the resort island of Phuket, already rose to 300 baht (9.7 U.S. dollars).

Minimum wage rise is one of the Pheu Thai-led government's populist policies promised with the people during the election campaign ahead of July 3, poll last year.