SMEs, OTOP and community enterprises are essential for the mobilization of national economy

March 18, 2013, at 0900hrs, at the Ballroom of Four Seasons Hotel, Bangkok, PM Yingluck presided over and witnessed the signing ceremony of joint integration project between the government’s specific financial institutions and government organizations. Participating in the ceremony were Industry Minister Prasert Boonchaisuk; Agriculture and Cooperatives Minister Yukol Limlaemthong; Deputy Finance Minister Tanusak Lekuthai; executives from both government and private sectors; and SMEs, OTOP and community entrepreneurs.

PM Yingluck gave an opening speech for the joint integration project between government’s specific financial institutions and government organizations that SMEs, OTOP and community enterprises were essential for the mobilization of national economy with the GDP of 3.9 trillion Baht, accounting for 37% of the national GDP. The SMEs-OTOP industry employed 11 million workers or about 84% of employment in the country’s private sector. The industry’s export value was 2.2 trillion Baht which accounted for 30% of the national export value.

PM Yingluck added that in order to enhance production capacity and competitiveness, it is necessary to plan for the competitive enhancement strategy to attract more investment. With the Government’s infrastructure development projects, such as high-speed railways, dual gauge railways, information and communication technology network development, as well as energy security, and water and irrigation management, cost of production and logistics would be decreased. Furthermore, it is also essential to spread prosperity nationwide to tackle the problems of disparity, unemployment, and to create business opportunities within the region along with mobilizing the national strategy on revenue earning and value adding.

According to PM Yingluck, SMEs and OTOP entrepreneurs could be categorized into 3 groups based on their current capacity. They are: 1) those with the readiness and capacity in export; 2) those with the readiness in receiving assistance and upgrading; and 3) those that have just started. The Government is set to provide various supports which include:

1) Support the development of network between big industries and SMEs in order to enhance mutual cooperation and production capacity, which would lead to the value adding of products.

2) Support SMEs’ production and services with innovations and knowledge, from customers’ behaviour to global trends and changing of the market in order to develop and add value to the products.

3) Support enhancement of production capacity and upgrade of products by acquiring modern machineries and technology to increase production volume.

4) Expand new markets and marketing channels in both domestic and international platforms.

5) Support new entrepreneurs systematically, and

6) Support access to sources of funds for new entrepreneurs, and for the upgrade of small community entrepreneurs to become bigger in the future.

PM Yingluck added that the integration of cooperation this time was also to prepare business entrepreneurs for the forthcoming ASEAN Community in 2015, and to reinforce the capacity building and competitive enhancement.