Thailand’s SMEs to receive 1.9 billion baht support fund

Industry Minister Akanat Promphan is advancing initiatives to assist small and medium-sized enterprises (SMEs) in mitigating financial pressures and enhancing their technological capabilities to remain competitive.

The Industry Ministry’s broader objective is to reform Thailand’s manufacturing sector, according to Akanat. To this end, the ministry plans to provide financial aid through its SME development fund, aiming to alleviate the financial challenges faced by these enterprises.

SMEs will have access to low-interest loans designed to boost their competitiveness and address liquidity issues. A total of 1.9 billion baht (US$57 million) has been earmarked for this purpose, Akanat said.

“This will help SMEs gain better access to financial sources and develop their businesses more sustainably.”

Previously, the minister revealed intentions to establish an Industrial Reform Fund worth over 20 billion baht (US$600 million) to support manufacturers, particularly SMEs. This new fund will consolidate various existing funds under the ministry, including those aimed at aiding SMEs, said Akanat.

“Many funds are well-intentioned, but their functions may be redundant, so they need to be managed under the Industrial Reform Fund to have clearer purposes.”

Akanat also plans to collaborate with the Small and Medium Enterprise Development Bank of Thailand to implement a debt moratorium for SMEs. Borrowers will have their principal payments suspended for three months.

Additionally, Akanat is expediting the creation of the I-EA-T Incubation Centre for SMEs in Bangkok, aimed at keeping SMEs abreast of new technologies. The centre will be operated by the Industrial Estate Authority of Thailand (IEAT), reported Bangkok Post.

“The centre should be ready to open by year-end.”

IEAT officials intend to construct the centre within the Lat Krabang industrial estate compound.

In related news, 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.