Thailand's government intervenes: This is how SMEs should benefit from the crisis!

Thailand's government intervenes: This is how SMEs should benefit from the crisis!

Amid the economic turmoil Thailand is currently facing, the Thai government is pursuing a variety of projects to stimulate the economy. How Bangkok Biz News reports, the government is targeting five main pillars of its policy to provide the necessary support for small and medium-sized enterprises (SMEs) that make a significant contribution to the economy.

A central element of this strategy is the first pillar: the “Khon La Khrueng Plus” program, which aims to increase the purchasing power of the population. This measure is important to boost consumption and thus stabilize the internal market.

Credit support for SMEs

Another important pillar of the government strategy is debt assistance for small loans of up to 100,000 baht through specially established Asset Management Companies (AMC). The Governor of the Bank of Thailand, Mr. Witthaya Ratanakorn, is holding intensive discussions with the Ministry of Finance and the Thai Banking Association. The aim is to reduce the high cost of credit and negative lending, which currently represent enormous challenges for many SMEs.

The situation is tense: While general credit costs are around 5%, SMEs have to expect costs of 10-20%. A new simplified credit guarantee model appears to be in development to make lending easier and reduce risks.

Focus on key sectors

The Thai government has identified a total of five sectors that should be particularly promoted: agriculture and food, automotive, intelligent electronics, healthcare and tourism. There are also considerations to expand the supported industries to include retail and export. These steps are critical to driving economic recovery.

The necessary financial resources come from the “Financial Institution Development Fund” (FIDF), the remaining funds of which are not part of the regular government budget. This means that these funds can flow more quickly into economic support and are aimed exclusively at the current crisis. The aim is to boost lending and effectively implement measures to support SMEs.

Mr. Ratanakorn emphasizes the importance of the Bank of Thailand not only focusing on monetary policy aspects, but also addressing society's pressing issues. This signals that support for SMEs is not only an economic necessity, but also entails social responsibility.

Overall, it appears that the Thai government is approaching the challenges of their application with a clear plan and a deep understanding of the needs of SMEs. In these turbulent times, this could be the key to restoring economic balance and paving the way for sustainable growth.