Issue 18

The formation of the ASEAN Economic Community (AEC) in 2015 will provide many opportunities for small and medium-sized enterprises (SMEs). The Federation of Thai Industries (FTI) Chair Supant Mongkolsuthree gives a glimpse of what is to come for Thai SMEs.

SMEs are the backbone of the Thai economy,” says FTI Chai Supant Mongkolsuthree. “They represent more than 2.7 million entrepreneurs, which also account for 81% of employment. The promotion of SMEs, which has been added to the national agenda, indicates the vital role of SMEs in the economic growth of the country.”

The FTI has set strategies to improve and enhance the competitiveness of Thai SMEs and to provide opportunities for them to prepare for the AEC in 2015. The first strategy is to take a proactive approach in seeking new markets.
“The FTI has joined the SMEs-Proactive project initiated by the Department of International Trade Promotion (DITP), where Thai entrepreneurs are given opportunities to display their products at international trade shows,” says Mongkolsuthree. “Furthermore, the FTI organises business-matching activities to create business opportunities for Thai SMEs in ASEAN markets.”

Moreover, the establishment of Special Economic Zones along the border areas is believed to widen the distribution channels for Thai products which would lead to higher employment and an increase in economic output. This would allow SMEs to widen their perspective from domestic to foreign markets, which will in turn enable them to grow and be more competitive.

A second strategy is to help SME entrepreneurs reduce their manufacturing costs. According to Mongkolsuthree, Thai entrepreneurs should focus on research and development, and innovation to further production capacity. Greater use of technology and e-commerce can also help increase long-term profits. The FTI offers various courses for SMEs to improve their technological knowledge.

To further assist Thai operators, the FTI has conducted various workshops and training sessions to help SME entrepreneurs sustain their businesses.
The final way that the FTI assists SMEs is through paving the way for financial aid. “The FTI is willing to assist with financing,” says Mongkolsuthree. “We have negotiated with major financial institutions to help them [SMEs] by offering low interest loans to meet their financial needs. The FTI has also discussed with the Thai Credit Guarantee Corporation to increase the loan guarantee rate for SMEs operators.”

For more information, visit www.fti.or.th
Words by: Manisa Phromsiripranee