Thailand launches 20 billion baht fund to support struggling SMEs

Industry Minister Akanat Prompan announced plans to establish an Industrial Reform Fund worth at least 20 billion baht (US$593 million). This initiative aims to support manufacturers, particularly small and medium-sized enterprises (SMEs), in addressing liquidity challenges and enhancing their competitiveness.

SMEs are currently facing significant liquidity issues and difficulties in accessing financial resources amidst intensifying competition and rapid technological advancements, Akanat stated.

The ministry already oversees several funds designed to assist SMEs.

“We will integrate these funds into a single fund.”

Akanat noted that while many existing funds are well-intentioned, their functions often overlap. Managing them under the Industrial Reform Fund would provide clearer objectives, he added.

Creating this new fund may necessitate amendments to some ministerial laws.

“The process should be done within three months.”

The fund is expected to alleviate SMEs’ financial concerns and help them adopt technological innovations to enhance their operations.

The government aims to encourage Thai entrepreneurs to explore new S-curve industries, such as bioplastics, semiconductors, and electric vehicles (EVs).

Thailand’s EV market is expanding rapidly, aligning with government policies promoting the production and purchase of zero-emission vehicles.

Under the government’s 30@30 policy, Thailand aims for EVs to constitute at least 30% of total motor vehicle production by 2030. This goal translates to producing 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.

Akanat also plans to discuss with the Industrial Estate Authority of Thailand (IEAT) the possibility of establishing a new industrial estate for SMEs.

Typically, purchasing land to construct factories within industrial estates requires significant investment, said Akanat. However, the proposed estate would cater to SMEs with limited budgets, reported Bangkok Post.

“I will talk with the IEAT about a location and industrial zoning issues.”

In related news, Thailand is set to boost marketing opportunities for small and medium-sized enterprises (SMEs) through the newly announced Thailand SME Synergy Expo 2024.