Private panel to offer steps for SMEs
Play
THE JOINT Standing Committee on Commerce, Industry and Banking will propose to the government short-to-medium-term measures to help boost the capability of small and medium-sized enterprises.
The Cabinet said on Tuesday that the second phase of the economic stimulus package to help SMEs would follow in one or two weeks after the Bt136-billion first phase is launched.
The JSCCIB welcomed the government’s packages, as they can help carry on private consumption and restore consumer and business confidence in the remaining months of this year.
The committee, however, will offer its own measures to strengthen SMEs, said Boontuck Wungcharoen, chairman of the Thai Bankers’ Association and the JSCCIB meeting.
The corporate income tax for SMEs should be lowered from 20 per cent currently to 5-10 per cent, varying according to the scale of business, the committee declared.
The JSCCIB did not propose a loan-guarantee extension from 18 per cent to 30 per cent without conditions because the Finance Ministry will propose this to the Cabinet for approval soon.
The 30-per-cent guarantee for SME loans through the Thai Credit Guarantee Corporation’s Bt10-billion-portfolio guarantee scheme will help SMEs access bank loans.
Only 700,000 of the country’s 2.7 million SMEs can access bank loans.
Border trade with a specific target is another short-term measure to help SMEs that the committee will propose to the government.
“Cross-border trade should be targeted at Bt2 trillion in two years, up from Bt1.4 trillion currently. The Commercial Affairs Offices in each province must also expand their role in supporting [border trade],” Boontuck said.
The JSCCIB will ask the government to consider the establishment of SME outlets in promising border provinces. Border trade can help the Thai economy amid the export slowdown in main markets.
Each province should have its own economic team. The JSCCIB would be a member of the provincial economic teams and coordinate with each upcountry agency.
The seven economic ministries under Deputy Prime Minister Somkid Jatusripitak should join the provincial economic teams, the meeting suggested.
As a medium-term measure, the JSCCIB will offer to join the nomination committee for Thailand’s overseas trade representatives.
The government should implement the “product champion” scheme to upgrade SME businesses.
High-potential SMEs should be finally enhanced to become a listed company.
