Bangkok: Small and medium-sized enterprises (SMEs) in Thailand are set to gain a significant competitive edge as the government considers granting Made in Thailand (MIT) products a 20% advantage in government procurement projects. This initiative, announced by Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas, aims to drive economic growth by supporting local businesses and simplifying investment regulations.
According to Thai News Agency, Ekniti unveiled these plans during the "FTI Reinvent Thailand: New Dynamics for the Future of the Thai Economy" seminar. The event, organized by the Federation of Thai Industries (FTI) and its partners, highlighted SMEs as a critical pillar in the government's strategy to bolster the Thai economy. Key components of this strategy include enhancing competitiveness, improving funding access, reducing business costs, and expanding markets, particularly through a 20% competitive advantage for MIT products in government procurement.
The government also plans to promote financial opportunities for SMEs by encouraging banks to lend through Supply Chain Financing on a digital platform. This initiative aims to leverage the creditworthiness of larger business partners as a guarantee.
In efforts to modernize SMEs, the government will implement the "Big Brother/Little Brother" project, which mandates that multinational corporations benefiting from Board of Investment (BOI) incentives assist Thai SMEs with technology transfer and supply chain integration.
Additionally, the "Half-Price Plus" project will empower small retailers by equipping them with new skills, such as utilizing AI for business analytics, to improve their operations.
The government is also committed to deregulating existing rules to attract new investments. However, these measures await the formal assumption of duties by the new Cabinet and the presentation of its policy statement to Parliament.
Mr. Kriengkrai Thianukul, President of FTI, stressed the importance of collaboration between the government, financial, and private sectors under the Joint Committee of the Three Private Sector Institutions (JCC) to drive the Reinvent Thailand initiative. He advocates for restructuring the economy towards innovation, technology, and creativity.
Mr. Apichit Prasoprat, President of the Small and Medium-Sized Enterprise (SMI) Institute, proposed measures to support entrepreneurs impacted by the Middle East crisis, focusing on liquidity and supply chain risks. These measures include facilitating access to funding and liquidity management through programs like PromptBIZ and the "big brother/sister helping little brother/sister" concept.
Financial support for SMEs will be bolstered by special interest loans from the BOI's Competitiveness Enhancement Fund and soft loans from the Government Savings Bank, totaling 100 billion baht.
Credit guarantee measures, such as the SMEs Credit Boost program and the 'Quick Big Win' credit guarantee from the Thai Credit Guarantee Corporation, are designed to improve credit access and reduce lending risks.
Sittikorn Direksuntorn, Director and General Manager of the Small and Medium Enterprise Credit Guarantee Corporation, announced additional support measures for clients impacted by the Middle East conflict and rising energy costs. These include a 3-month moratorium on fees for affected clients and a payment deferral option for debtors under a restructuring plan, with registration open from March 15 to April 14, 2026.