Bangkok: The Minister of Industry has unveiled a strategic initiative to inject a 20 billion baht budget through the SME Bank to enhance liquidity for small and medium enterprises (SMEs) without tapping into the national budget. The initiative emphasizes upgrading green businesses to curtail costs and promoting a model that encourages the use of reusable water bottles to address the surge in plastic waste, currently at 2.7 million tons. The overarching goal is to secure raw material availability and navigate the prevailing economic challenges.
According to Thai News Agency, Mr. Varawut Silpa-archa, the Minister of Industry, announced the plan ahead of a special cabinet meeting, highlighting measures implemented amid the ongoing energy crisis and global conflicts impacting production costs. The ministry has outlined three primary dimensions of support through the Small and Medium Enterprise Development Bank of Thailand (SME D Bank).
The first dimension focuses on providing access to funding. A significant budget of 20 billion baht is earmarked for low-interest loans at a fixed rate of 3% for three years. These loans include the SME Green Productivity loan, offering up to 30 million baht for upgrading to energy-efficient machinery or purchasing electric vehicles, the SME Empowerment loan with up to 1 million baht available without collateral, and the Beyond SMEs loan, which can also reach up to 30 million baht. A flexible loan approval process is emphasized to facilitate access.
The second dimension involves supporting vulnerable groups through the "3 Reductions" strategy: reducing the principal, interest, and monthly payments to sustain employment levels.
The third dimension concentrates on empowerment through upskilling, laying the groundwork for sustainable green business practices.
Mr. Varawut assured that the funds are in place and no national budget would be required to cover interest payments. "There's no need to use the national budget at all. We already have the funds. We can proceed immediately to assure entrepreneurs that they can access assistance without waiting for the national budget process," he stated.
Additionally, Mr. Worawut addressed the rising costs of plastic pellets driven by escalating oil prices. The Ministry proposed behavioral shifts to cut costs and ensure raw material security, such as adopting personal water bottles instead of disposable plastic ones. This behavioral change could significantly reduce waste, as the average use of two plastic bottles per person per day could result in a reduction of up to 4,000 bottles daily. Other initiatives include promoting the use of biofuels like palm oil B20 to B70 and increasing ethanol proportions to E85, alongside utilizing electricity generated from sugarcane biomass.
During the announcement, Mr. Varawut showcased his personal water glass, demonstrating his commitment to the campaign against plastic use by highlighting the name inscribed on its side.