SMEs boosted by new govt procurement rule

Struggling small and medium-sized enterprises (SMEs) were handed another lifeline on Tuesday after the Cabinet approved new rules on government procurement. Under the amended draft ministerial regulations on supplies and procurement, government agencies must spend at least 30 per cent of their budget for procurement on supplies from SMEs. SMEs whose bids are within 10 per cent of the lowest bid will also be prioritised when it comes to handing out government contracts.
The new regulations also urge government agencies to purchase products from stores, cooperatives or farmers' institutions certified by the Agriculture Ministry.
The rules dictate that government projects must use mandatory quotas of domestically produced materials, including 90 per cent of Thai steel on construction projects.
Meanwhile, if Thai contractors offer a bid price less than 3 per cent higher than that of a winning foreign bid, the government agency must consider selecting the Thai bid.
The new rules also require government agencies to purchase environmentally friendly products and from businesses registered with the Pollution Control Department.