Loans for Thai SMEs eyeing foray into RCEP markets
Thailand’s Commerce Ministry is matchmaking the Exim Bank with business entrepreneurs to help fund their foray into the RCEP markets after the world’s largest free-trade agreement came into force on January 1, Commerce Minister Jurin Laksanawisit said on Thursday.
The ministry’s project, called “Loan Matchmaking for Inroads into RCEP Markets”, aims to seek funding for small and medium-sized enterprises (SMEs), community ventures, and startup businesses so that they can export their products to 14 other member countries of the Regional Comprehensive Economic Partnership, which also includes Thailand.
Under the project, the Export-Import Bank of Thailand (Exim Bank) offers cheap loans with an annual interest rate of 2.75 per cent in the first year to SMEs seeking funds for their businesses.
Each eligible SME is allowed to borrow as much as Bt50 million as more than Bt3 billion have been allocated for this project, according to Jurin, who doubles as deputy prime minister.
The project is a collaboration between the ministry, businesses and financial institutions.
Thailand’s trade with the RCEP nations accounts for half of the total value. According to the FTA, 39,366 items of Thai-made products can be exported to other member countries with zero tariff, with immediate effect for 29,891 of those items since the agreement went into force on the New Year’s Day.
In addition to the function to launch the project in Bangkok on Thursday, the Commerce Ministry will also hold similar events in all four regions of the country, the commerce minister said.
RCEP is the world’s largest free-trade agreement, covering a third of the global population and accounting for about a third of the world’s total gross domestic products (GDP).
Its members are 15 Asia-Pacific nations — Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.
