Pichai to seek central bank aid for debt-ridden SMEs

Commerce Minister Pichai Naripthaphan said on Wednesday that he will seek cooperation from the Bank of Thailand to help restructure the debts of SMEs suffering from financial difficulties.

Pichai, a core Pheu Thai member, spoke to reporters after leading his two deputies – Bhumjaithai’s Napintorn Srisunpang and United Thai Nation Party’s Suchart Chomklin – to pay their respects to sacred things at the Commerce Ministry. This was their first day at work.

The trio arrived at the ministry at 8.15am and paid respect to the two shrines and the statue of Prince Kitiyakara Voralaksana, Thailand’s first commerce minister.

When asked about how he plans to help SMEs, who are overwhelmed by stiff competition from the influx of cheap goods from China, Pichai said he will be discussing the issue with the BOT.

He said he realised that the central bank was applying the principles of moral hazard to not offer help for fear that SMEs with good financial standing would also default on their payments.

Pichai explained that most SMEs did not want to default on their loans, but they have been struggling in the aftermath of the Covid-19 pandemic and global slowdown.

The minister said that if the central bank does not extend help now, the SMEs will be overburdened with debt, which will eventually have to be written off anyway.

“So, I think cooperation from the central bank and commercial banks is crucial to help SMEs,” Pichai said.

As for the state of Thai SMEs, he said it should not be blamed on cheap goods from China alone.

“If we have an attitude like this, it will be like campaigning against China. China is also concerned about this and considers us its sibling nation, so we must find a common solution,” Pichai said.

The minister said he will not disclose details about this urgent mission now, but will pursue it after the policy debate in Parliament is over. He added that he has discussed his policies with Commerce Ministry permanent secretary Wutthikrai Leeviraphan.

“The ministry will introduce measures to allow people to buy cheap goods,” he added.

Meanwhile, he said, he will deliver his policies to senior officials at his ministry on September 16. He said he does not expect any issues in working with his two deputies who hail from other parties.