State agency seeks THB1-billion budget to boost SME competitiveness
Senior official reveals Covid outbreak led to closure of millions of businesses
The economic downturn triggered by the Covid-19 crisis has slowed both the Thai and global economies, leading to the closure of over 3.2 million Thai small and medium enterprises (SMEs).
Panita Shinawatra, acting director of the Office of Small and Medium Enterprises Promotion (OSMEP), revealed that the agency is currently preparing data to request a budget of approximately 1 billion baht for fiscal year 2026. This budget aims to enhance the competitiveness of more than 3.2 million Thai SMEs nationwide.
“Over the past year, many factories have closed, while new ones have emerged. Among the 3.2 million SMEs, there has been a constant flux of closures and new openings. Those newly established often reflect a better understanding of business trends,” she said.
Looking ahead to next year, the focus will be on supporting innovation and equipping entrepreneurs with knowledge about global trends. This is particularly crucial as the European Union has implemented stricter regulations such as the CBAM (carbon border adjustment mechanism) and various carbon tax measures now enforced in many countries. Meanwhile, many Thai products remain highly popular, making it essential for entrepreneurs to stay ahead of global trends.
Additionally, OSMEP has identified China as a key market with high consumer demand. Thai entrepreneurs have significant opportunities to capture market share there, as well as in Taiwan and other Asian markets.
“Even though China's economy has not fully recovered, Chinese consumers continue to spend regardless of economic conditions. Thai food remains highly popular. However, certain products need to adapt their flavour and aroma to cater to the preferences of residents in various Chinese cities,” Panita said.
Recently, OSMEP organised activities to promote and develop high-potential entrepreneurs in the Eastern Economic Corridor and surrounding areas for fiscal year 2024. The targeted provinces include Chachoengsao, Chonburi, Rayong, and Chanthaburi. The initiative aims to enhance competitiveness and foster innovation in key industries to encourage investment or establish new businesses.
The programme also facilitates access to funding sources for entrepreneurs, integrating innovation into their businesses. Additionally, it expands trade opportunities both domestically and internationally for entrepreneurs in the region. The activities, running from September to December 2024, focus on developing entrepreneurs within the project area.
The primary target group consists of businesses registered for no more than three years, with operations based in the designated provinces. These businesses operate in the following sectors:
● Industries leveraging local identity to create value
● Agricultural and food processing/technology industries
● Tourism and health tourism industries
A total of 150 entrepreneurs are participating – 27 from Chachoengsao, 48 from Chonburi, 42 from Rayong and 33 from Chanthaburi.
After undergoing development, the programme is expected to generate over 28 million baht in revenue, cost reduction, investment expansion, job creation, and added product value.
In addition to enhancing business potential, the programme has facilitated connections to funding sources for 31 entrepreneurs with high potential, who are ready to expand their investments. These businesses have planned investments totalling over 64 million baht, bringing the total to 126 million baht.
