Government Aims to Further Promote SMEs

In addition to its recent tax incentives targeting small and medium-size entities (SMEs) as reported here, the Thai government, through the Small and Medium Enterprise Promotion Committee, approved a nearly 2 billion THB budget to finance SME related projects.

As reported in the Bangkok Post, the budget will target six areas:

  1. Promoting SME activities through the Ministries of Industry, Commerce and Science and Technology.
  2. Establishing an SME recovery fund to assist SMEs affected by the economic downturn or those in the farming sector that have no access to financing.
  3. Financing new SMEs through incubator centers throughout the country.
  4. Strengthening SMEs by conducting in-depth analysis of SMEs to develop their products, services and marketing.
  5. Setting up 20 SME “one stop service centers” upcountry.
  6. Supporting community based enterprises and the “One Tambon One Product” scheme.

SMEs are expected to play a larger role in the Thai economy over the next five years by increasing their share of economic activity from 39% of GDP to 45%.