New programme to help local products fuel economy

“The current export-led economy has caused a serious imbalance within our economic structure. One of our legs is strong but the other one is withered, and if we continue to leave things like this, the economy will continue to weaken because our economic growth will continue to be dependent on other people,” he told central and local government officials and members of the National Village and Urban Community Fund Office at their meeting yesterday.

“Locals know best how to improve and what kind of project is needed for their community,” he added.

He has urged all relevant local-government officials to gather information from local people on projects that would improve and upgrade their local products and tourism before presenting it to a cluster selection committee that will be formed in the next two weeks. The committee will then talk to large corporates that have already made it known that they are willing to help about their involvement in the development of the products.

He did not clarify how long local officials have before they have to present their ideas.

Two cluster committees will be set up. One committee, to be chaired by Prime Minister Prayut Chan-o-cha, will regulate the amount of funding and other incentives while another panel, chaired by Somkid, will be tasked with the selection of the products and negotiations with the private sector. 

Meanwhile, the government will continue to provide funding via measures that have already been introduced, including the Bt1-million cash injections through around 60,000 Village Funds ranked grades A and B and the Bt100-billion soft-loan policy for small and medium-sized enterprises, Somkid said.

As of yesterday, 50,050 qualified Village Funds had filed for the extra funding from the target of 59,875 funds, and 47,005 funds have already received it, accounting for Bt46.374 billion of the target of Bt60 billion. 

Policy loans charging 4-per-cent interest have also been welcomed by SMEs, as 80 per cent of the Bt100-billion-loan budget has already been disbursed. The Cabinet on Tuesday approved another Bt50 billion to support the measure further.

Somkid said the Commerce Ministry would be in charge of looking for markets for the local products via the setting-up of a “Pracharat Market” nationwide along with negotiations with retail operators. The Industry Ministry will be in charge of upgrading the quality and design of the local products with help from the know-how and professional assistance that will be provided by large corporates. 

He said the e-commerce plan would be backed up by the National Broadband Policy, which would bring Internet broadband connections to all villages in Thailand within two years.

“When I started the Otop [One Tambon One Product) policy 10 years ago, I did not meant for it to stick in one place like where it is right now. 

The cluster policy along with the development of e-commerce will be important catalysts that will bring the Otop policy to the next step.”