Thailand’s Cabinet has ordered the Ministry of Finance to come up with plans to provide additional financial aid to small and medium enterprises (SMEs) that have been affected by the Covid-19 pandemic. Government Spokesperson Narumon Pinyosinwat said, “The Ministry of Finance will estimate the budget to be used as well as the loan limit and interest rate and will present to the Cabinet again in the next meeting”.
It was reported that a survey by the Finance Ministry revealed that SME operators who were unable to obtain loans during Covid-19 pandemic were mostly those who had never applied for a loan from financial institutions before, resulting in these institutions having no record of their repayment ability and therefore refusing to grant loans to avoid risk. Furthermore, some SMEs application for loans were rejected because they have their status listed under non-performing loans although they still have the capacity to continue their businesses.
The Ministry of Finance has assigned the Office of Small and Medium Enterprises Promotion (OSMEP) to come up with measures tailored specifically to help SMEs in the above two groups, such as providing loans from the OSMEP’s fund instead of relying on financial institutions. The measures are expected to be ready by the end of July.
Meanwhile, Prime Minister Prayut Chan-o-cha said the government has come up with fresh measures, including quotas under procurement projects to buy products and services from small- and medium-sized (SMEs) enterprises. Speaking in a TV Pool broadcast, General Prayut said that in recent weeks, he had personally visited a number of business associations to listen to their pandemic-related woes. After the meetings, General Prayut said he had decided to implement a raft of measures to help them.
First, he said he had directed quotas be instituted from all state procurement budgets to purchase local products from small, medium and micro-sized businesses so they can gain additional income. This will apply to quality products that are properly certified and registered and will be done in a way that is consistent with World Trade Organization regulations, said General Prayut. He pointed out that SMEs employ more than 14 million people and they play a very important role in the economy. While the state will do its part to help SMEs, he said he wanted large business owners to help support local SMEs too when they make buying decisions.
